Chávez seeks geopolitical integration without pondering economic effects

YOLANDA OJEDA REYES EL UNIVERSAL

Venezuelan President Hugo Chávez attended a presidential summit of the Southern Common Market (Mercosur) for the second time as a special guest. This move shows that Chávez is determined to speed up Venezuela's incorporation to the regional trade bloc, leaving aside his country's historic integration with the Andean Community of Nations (CAN).

During President Rafael Caldera's administration, Venezuela took the first steps towards integration with Mercosur, but economic analysts warned that the southern giant could gobble Venezuela's industrial sector. At the time, the country needed an increased industrial maturation. Now, such considerations are not included in Chávez' agenda. Under his rule, politics has prevailed over the opinion of experts warning that an integration pact with Mercosur may be harmful for Venezuelan companies.

International analyst Elsa Cardozo states that Brazil is basing its relationships with Venezuela on two grounds: geopolitics and economy. Regarding the economic field, President Luiz Inácio Lula da Silva's administration is actually pondering the strengthening of Brazilian economy as a result of a wave of imports made by Venezuela from Brazil "in order to finish up the Venezuelan private sectors, which will have a favorable impact on the trade balance" of Brasilia.

In this sense, healthy moves to make the Venezuelan industries rebound "are not included in the model of President Chávez." Cardozo believes that a likely association between Argentina and Brazil -which represent 90 percent of Mercosur- may lead to a conjuncture favoring Venezuela's entry to the regional bloc. "They are thinking in business terms: how much am I going to sell to Venezuela?" She also believes that before attending Mercosur summit in Paraguay, Chávez' administration conducted a fierce campaign to show off its bonds with Brazil.

President Chávez has a negative opinion about CAN. Recently, the body's secretary general suggested that, given the slowly progress in negotiations with Mercosur, CAN may rather start talks with the United States. Chávez did not love the idea. But that is not the only reason for Chávez' attitude against CAN. When his government chaired CAN, Venezuela sought its integration with Mercosur unilaterally, leaving Colombia -a long-time trade partner- aside.

"He (Chávez) lost interest in CAN long time ago. He is interested in Mercosur, but not for economic reasons. He is looking at a geopolitical integration, because he believes that a Latin American integration made this way may be helpful to stop the progress of globalization and neoliberalism."