PREVIEW-Morales aims to inspire regional unity at summit
Source: Reuters
By Eduardo Garcia COCHABAMBA, Bolivia, Dec 7 (Reuters) - Bolivia's Evo Morales faces an uphill battle toward revival of South American trade unity along socially responsible lines when he meets with regional leaders in a summit on Friday and Saturday. With two trade blocs wrestling to have the leading voice in South America, Morales' task is a tough one, even though many of the region's leaders are fellow leftists. Morales' closest ally, Hugo Chavez of Venezuela, re-elected a few days ago, and Ecuadorean President-elect Rafael Correa, have confirmed their attendance at the South American Community of Nations summit in the central Bolivian city of Cochabamba. Most leaders from this region of 370 million people are expected to attend but many -- such as Brazil's Luiz Inacio Lula da Silva and Chile's Michelle Bachelet -- are more middle-of-the-road than Morales. The Bolivian leader took the radical step of nationalizing the energy industry this year in an attempt to increase income for the region's poorest country. "I envy the European Union. Why can't we move forward here? I feel that South America has more natural resources than the European Union, and if we have the natural resources and we take advantage of them, I am absolutely sure that underdeveloped countries will improve their economies," Morales said ahead of the summit. Morales' ideal is for a regional trade entity that puts environmental and labor rights, and those of local producers, before those of big businesses, emulating the Cuba, Venezuela, Bolivia pact, Bolivarian Alternative to the Americas. Environmental group Friends of the Earth trade campaigner Joe Zacune said that Morales' proposal highlights that "countries in the South are refusing to play by the trade rules set by the European Union or the United States." FRICTION IN THE REGION Ricardo Israel, director of the Center for the Quality of Democracy in Chile, said strengthening ties could be tough in a region frequently troubled by unresolved border disputes and bilateral stand-offs. Among other issues, Argentina and Uruguay are in a bitter spat over a paper-pulp mill being built in Uruguay on the border and land-locked Bolivia and Chile are perpetually at odds over territory since a 19th century war. Venezuela, meanwhile, has had some success spreading its anti-United States message in the region, which has exacerbated divisions. "Although the United States and Venezuela might be playing at polarizing the region, South America cannot blame its division on external factors. The truth is that there isn't a country that can play the role of amalgamator," said Israel. "I don't think Morales can play that role, because Bolivia is plagued with internal conflict," he added. Opposition protests have intensified in Bolivia in recent days as Morales pushes ahead with initiatives including a land reform and rewriting the Constitution to empower the poor, Indian majority. A U.S.-backed all-Americas trade initiative was scuttled by resistance from agricultural powerhouses Argentina and Brazil, leaving two rival trading blocs. The western countries of Bolivia, Colombia, Ecuador and Peru belong to the Andean Community of Nations, which lost clout this year when Venezuela withdrew claiming the bloc was "dead" after Peru and Colombia signed free trade deals with the United States. Venezuela then joined Mercosur, which also includes Argentina, Brazil, Paraguay and Uruguay, but which has been riddled by spats between its members and has not progressed as far as envisioned when it was launched 12 years ago. Chile, one of the largest and most stable South American economies, does not belong to either group. "Some countries are looking toward the United States because they see regional integration too far away in time," said Israel.
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