European Union-style bloc pitched for Latin America, Caribbean

Authored by reuters.com and submitted by Joseph20102011

MEXICO CITY, Sept 18 (Reuters) - Latin American and Caribbean nations should aspire to a bloc like the European Union, Mexico's president and other leaders said at a summit on Saturday, in a bid to wrest influence away from the Washington-based Organization of American States (OAS).

For years, a few of the region's leftist standard-bearers who attended the gathering of the Community of Latin American and Caribbean States (CELAC) have viewed the OAS as too close to the United States, resenting in particular its exclusion of Cuba from its members states.

The host of Saturday's summit, Mexican President Andres Manuel Lopez Obrador, told more than a dozen presidents and prime ministers at the opening ceremony that such a revamped diplomatic body could better boost the region's inequality-stricken economies as well as confront health and other crises.

"In these times, CELAC can become the principal instrument to consolidate relations between our Latin American and Caribbean nations," he said in a cavernous ballroomat Mexico's ornate national palace where leaders took turns speaking and some sparks flewbetween ideological adversaries.

"We should build in the American continent something similar to what was the economic community that was the beginning of the current European Union," the leftist Lopez Obrador said. He emphasized the need to respect national sovereignty and adhere to non-interventionist and pro-development policies.

The leaders gathered at the invitation of Lopez Obrador with a stated aim of weakening the OAS. The summit's kickoff focused attention on the region's center-left leaders, including Peru's new president, Pedro Castillo, Cuba's Miguel Diaz-Canel and Venezuela's Nicolas Maduro.

Brazil's right-wing President Jair Bolsonaro pulled out from CELAC last year, criticizing it for elevating undemocratic countries. Argentina's Alberto Fernandez canceled at the last minute due to a sudden cabinet shuffle in his country.

1/4 Mexico's President Andres Manuel Lopez Obrador speaks before the traditional military parade to mark the bicentennial of Mexico's Independence from Spain, and ahead of the summit of the Community of Latin American and Caribbean States (CELAC), at the Zocalo square in Mexico City, Mexico September 16, 2021. REUTERS/Gustavo Graf Read More

Some fissures emerged among leaders. Uruguay's center-right President Luis Lacalle said his participation should not be interpreted as an embrace of some of the region's more authoritarian regimes or a rejection of the OAS.

"We are worried and look gravely at what's happening in Cuba, Nicaragua and Venezuela," he said, ticking off what he described as repressive actions including jailing of political opponents.

Cuba's Diaz-Canel fired back by attacking neo-liberal policies that he said have retarded social progress. He also criticized Lacalle's leadership, noting the large response from a recent petition drive by his domestic political opposition.

The Uruguayan responded by criticizing Cuba's communist government, noting it does not tolerate opposition or allow its people to elect their own leaders.

Bolivian President Luis Arce called for a global agreement to forgive debts for poor countries while Honduran President Juan Orlando Hernandez called for a regional body to combat climate change.

A new CELAC fund to respond to natural disasters was also announced.

Venezuela's late President Hugo Chavez helped set up CELAC in 2011, and his embattled successor Maduro arrived in the Mexican capital late on Friday as a surprise addition. read more .

In remarks Friday night, Maduro suggested a new CELAC headquarters be established in the Mexican capital. Mexico's Foreign Minister Marcelo Ebrard politely sidestepped that proposal on Saturday when asked by reporters, describing the idea as premature.

Reporting by David Alire Garcia and Noe Torres; Editing by Andrea Ricci and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

srpiniata on September 19th, 2021 at 18:04 UTC »

Honestly, i would love for it to happen but I don't see it happening for several reasons.

Theres a larger disparity between the top members and the rest. Brazil has a GDP 80% larger than Mexico, that has 3/4 times the GDP of Argentina/Colombia/Chile. While the Brazil/Mexico disparity is similar to that of Germany/France, Italy and Spain are much closer to the economic size of France than the rest of latinamerican countries are to the economic size of Mexico. Our economies are not that integrated outside of Mercosur. Mexico barely trades with the rest of Latinamerica and the same is true the other way around. Too many barriers not worth breaking when you have a FTA with the largest economy in the world. No obvious mechanism for a common currency and most countries cant be trusted to make a estable monetary policy. Hell, a lot of countries on the region have just adopted the dollar (or pegged their currency value to it) instead of having their own currency. Noone knows how USA will react. Making deals with a 5t economy is easy, making deals with a 1.3t economy is easier. It will make a partner that they would need to take seriously. Honestly, a lot of countries are too protectionist to make it work. In a common market everyones agricultral industries would collapse with free flow from products from Brazil, and other than the Brazilian auto industry you would see the rest of the region just switch to imports from Mexico (fun fact, a car can be twice as expensive on some south american countries than in Mexico due tariffs and taxes). Right now i seriously doubt anyone wanna be further integrated with Venezuela or Argentina, why bring those outside inestabilities to your own economy. What about Cuba? Are we inviting them and snubbing the USA?

AirbreathingDragon on September 19th, 2021 at 14:34 UTC »

I don't see this bloc being much more than a merger of Mercosur and the FPDSA, at least at first. The potential exclusion of several South American nations however risks undermining its stated goal, even if it allows them to avoid the same short-run pitfalls of USAN.

eilif_myrhe on September 19th, 2021 at 14:18 UTC »

Mexico plans for CELAC may need a shift in Brazilian government to work. Next year is election year in Brazil and Bolsonaro is not looking good in the polls, so maybe in 2023 Mexico can have a strong partner for Latin American integration.