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Aftermath of the South American energy summit surprising
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 Archivo, ABN.
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Caracas, apr 23, ABN (Tessa Marsman).- On the aftermath of the First South American Energy Summit, last week in Margarita Venezuela, not everything is what it seemed to be.
During this meeting of all twelve South American countries, from the perspective of the organizer of the event, Venezuela, the main relations established seemed to be as follows:
Relations with Colombia and Ecuador were intensified by exchanging gas and oil. With Brazil, Venezuela confirmed its relationship on petrochemicals and other petroleum issues but disputed the mass production of ethanol planned by Brazil in cooperation with the United States.
The Chilean-Venezuelan relationship seemed at least neutral. Deals were made about the exploration of the southern country of Venezuela's Faja del Orinoco, the new to be exploited oil field in the Venezuelan state of Bolivar. Meanwhile however, there was a quarrel over the renewal of the commercial Venezuelan television channel, RCTV.
The Venezuelan president Hugo Chávez told Michelle Bachelet, the president of Chile, that the renewal of the channel was «a national matter», when Bachelet voiced her opinion on the matter.
Uruguay and Peru’s president were noted by their absence, implying a disinterest or a rejection of Unified South American politics in which the majority of the countries are socialist and anti-United States. Uruguay was visited by the president of the United States, George Bush a month before the summit. Peru has a right wing government.
Paraguay and Bolivia received more oil and a refinery, respectively.
The presence of Suriname and Guyana was that economically insignificant that even their own press failed to report on the Summit.
Aftermath
The day right after the Summit Venezuela’s president had a bilateral meeting with the president of Chile confirming the excellent relationships between the two countries.
Nothing was said about a television channel during the meeting in which agreements had been signed that will boost economic cooperation between small and medium-sized companies in the two countries, educational exchange between their foreign ministries, and cooperating in plans to promote women's rights.
Bachelet did pay a visit to the Venezuela's opposition that defends the Channel.
That same day it became clear that Venezuela and Brazil agreed very well on an ethanol agreement in contrary to what had been suggested on the Summit, but under its own conditions. Chavéz announced that the country needed 200 thousand barrels a day to inject into their fuel.
The United States and the European Union are working regulations that oblige gasoline imported to contain a percentage of ethanol. The proposed new standards «will also allow increased blending with biofuels - including up to 10% ethanol - which emit less CO2 along their life-cycle», according to a report published by the European Union.
As far back as half way 2006, Chávez agreed upon an ethanol deal with China and Malaysia for this same ecological reason. Rice, sweet potato and yucca will be produced in China while Malaysia will plant palm trees in Venezuela.
The Uruguayan president, Tabaré Ramón Vázquez Rosas did not assist on the summit, but he did send the vice president Nin Noboa as his replacement.
And this reflects exactly the relationship the two left wing countries have. On one hand they have excellent economic relations and the same line of thinking. On the other hand the small Uruguay is anxious of an economic and politic dependency on the economic giant Venezuela, according to Uruguayan magazine Brecha.
A visit of Chávez to Uruguay’s neighbor Argentina right at the time that George Bush was visiting Uruguay to discuss business agreements reflects his «interference in national politics», according to Uruguayan politicians.
However, the fact of the matter is that Venezuela and Uruguay have signed agreements that entail a Venezuelan investment of 900 million dollars of which 700 are related to petroleum matters. Additionally, to the summit last week, Uruguay «was entering the Summit with a positive mind», according to the Uruguayan vice president. This is a sign of a steady relationship.
Peru and Paraguay
Peru also got its part of the share. It negotiated with Ecuador of entering the so called «OPEC of gas», the Oppegasur, unifying the gas producing countries Argentina, Bolivia and Venezuela. The Oppegasur is supposed to be a price setting organism in the near future.
Paraguay, a non socialist country seemed to come out as one of the winners of the summit. President Nicanor Duarte negotiated a Venezuelan evaluation of the construction of an oil refinery. Paraguay’s vice-president, Luis Castiglioni however was less pleased. He claimed that the agreement «was not a benefit to Paraguay».
«The government does not gain anything with an alliance with a leftist Chávez», he said.
The Paraguayan vice president resigned, but the anti Chávez sentiments in the right wing government can bring some inconvenience in the unification of South America.
Ecuador and Colombia seemed to have established relationships that did not change content up till now. But in the case of Colombia, despite of years of good economical relations, change can be sudden due to the radical differences in the ideology of both Álvaro Uribe Vélez, the president of Colombia, and Venezuela’s president, Chávez.
On the next summit in Cartagena de la India in Colombia and the second in Pernambuco, Brazil, the status quo in the development of the relationship between the South American countries will be revised further. |
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| ABN 08:51 pm 23/04/2007 |
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