América Latina

The Pacific Alliance moves ahead with Paraguay

Oscar Ugarteche, Francisco J. Martínez

25/05/2013

Opinión

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Once again, as in a chess match, the pieces on the board of regional integration are strategically positioning in favour of some and to the detriment of others. The interests of certain countries reflected in each of the blocs, UNASUR with Buenos Aires, MERCOSUR with Brasilia, CELAC with Mexico, the Pacific Alliance with Washington and the CAN, still independent, have also changed direction(1).

On this occasion, the best moves have without doubt been those of the Pacific Alliance (the interests of Washington, headed by Peru), whose specific weight has been supplied by Mexico. The Alliance have traced a path that is increasingly defined. This with the support of a media blitz and the promotional strategies that have been introduced in their favour, expressed in the proposals of homologation of tax policy and investment, as well as the clear intention of creating a Parliament that will be the legislative framework that gives the green light to commercial agreements and free movement of persons, capitals, goods and services, that arise through this mechanism (2).

In addition, we should note the fact that many countries in the region are interested in forming part of the Alliance. Leading the pack is Costa Rica, which on May 22 will sign a Free Trade Agreement with Colombia (3) thus taking a step towards its integration in this bloc, but there is also serious interest on the part of the governments of Uruguay and Paraguay, especially the latter, which is temporarily excluded from Mercosur and looks to "establish good relations with the world, and especially with neighbours" (4), according to a declaration by Horacio Cartes, President of Paraguay.

In the face of this positioning of the Pacific Alliance, various countries, mainly European ones, have found a certain attraction that has resulted in their expressing requests to participate as observers. This is the case with Portugal; but perhaps the most striking of these petitions has been that of China (5), that wants to table a dialogue to participate as an observer and to get to know the objectives and the implications of this Alliance, even as they are aware of the fact that this is a move to leave that country out of the negotiations.

For their part, MERCOSUR (Brasilia) appears to be treading water, since on the one hand the bloc is at a standstill and creating conflicts in some sectors of the economy, in the face of which criticisms have arisen and proposals to reestablish the bloc; but on the other hand, it is strengthening the ties of Latin American integration, incorporating more countries such as Guyana, Surinam, Bolivia and Ecuador, whose participation could be crucial in the development of this bloc, principally the latter country [Ecuador] since it will serve as a counterweight to the possible adhesion of Paraguay in the Pacific Alliance.

Another important fact, mentioned in the last Editorial (6), is that everything appears to indicate that in great measure the success or failure of MERCOSUR will depend on the result of negotiations with CAN and the extent to which the Brazil-Argentina stand-off ends up discrediting MERCOSUR.

At the same time CAN, which perhaps is at the moment the most discreet, appears to position itself intelligently, since among the various proposals made it has suggested weighing the impact of the cultural sector in the economy, proposing to tighten the cultural links between the member countries, in addition to the fact that it has sought to maintain cross-border cooperation, which supports the citizens of the participating nations and means it continues to progress.

At the present time the weight of dependence is on UNASUR (Buenos Aires), which has suffered some setbacks that in great part are due to the –possibly excessive– support given to Venezuela and the worsening of the relationship with Paraguay, especially because of declarations made before the elections in that country.

All of which appears to say that up to now the Pacific Alliance, with the interests of Washington behind it, has made the best moves. Nevertheless, the match is not finished. On the contrary, it has just started. Brasilia needs to respond. Peru is the pivot with the pro tempore presidency (of UNASUR) and the new foreign minister will need to look carefully at her moves. Good luck to the new Peruvian minister. To be continued.

(Translation: Jordan Bishop)

- Oscar Ugarteche is a Peruvian Economist. Resident researcher at the Institute of Economic Research in UNAM, Mexico. Member of the SNI/Conacyt. Coordinator of the Observatorio Económico de América Latina (OBELA) www.obela.org and president of ALAI www.alainet.org.

- Francisco Martíez Cervantes is a member of OBELA.

1. UNASUR, Union of South American Nations; MERCOSUR, Southern Common Market; CELAC, Community of Latin American and Caribbean States; CAN, Community of Andean Nations.

2. EFE, “Países de la Alianza del Pacífico ponen en marcha su propio Parlamento”, published in Radio Programas del Perú, May 6 2013. Available at:

http://www.rpp.com.pe/2013-05-06-paises-de-la-alianza-del-pacifico-ponen-en-marcha-su-propio-parlamento-noticia_592184.html

3. Óscar Rodríguez, “Costa Rica y Colombia firmarán TLC”, published in La Nación de San José May 4 2013. Available at: http://goo.gl/ksYnZ

4. AFP, “Cartes busca profundizar relación con Alianza del Pacífico”, published in El Economista April 28 2013. Available at:

http://eleconomista.com.mx/internacional/2013/04/28/cartes-busca-profundizar-relacion-alianza-pacifico

5. Ivette Saldaña, “Interés de China por la Alianza del Pacífico”, published in El Financiero April 3 2013. Available at: http://www.elfinanciero.com.mx/component/content/article/44/9822.html

6. http://www.alainet.org/active/63331

www.obela.org

Editorial Integración, May 2013

https://www.alainet.org/en/active/64245?language=en