Last Updated: Thursday, 19 June, 2003, 04:58 GMT 05:58 UK
By Tom Gibb BBC South America correspondent

South American leaders have ended a summit in the Paraguayan capital, Asuncion, with a promise to revitalise and expand the trading bloc, Mercosur, which has been seriously damaged by years of economic crisis in the region.

Recent recoveries in the two largest economies, Argentina and Brazil, are now creating much better prospects for closer integration.

There are plans to expand the trading bloc

The move to rebuild Mercosur is being led by the presidents of the two countries, who both took office this year.

They want to aim for a South American alliance based on the model of the European Union.

But that is still a long way off.

Brazil's President, Luiz Inacio Lula da Silva, known as Lula, promised to work every minute to consolidate the dream of Latin American unity.

But he and his colleagues will be starting almost from scratch.

Mercosur members Brazil, Argentina, Uruguay, Paraguay

First they have to eliminate tariff differences which have become more acute within South America over the last few years.

Lula said that recovery in Brazil and Argentina would now make that possible.

There are plans to expand the bloc to include Chile, Bolivia and Venezuela, and there is talk of creating a Mercosur parliament and a joint currency. But, again, as yet there are no concrete proposals.

In the short term, Lula wants to get a joint strategy to give greater strength in trade negotiations with the United States.

He will now travel to Washington to meet President George W Bush.

Reuters, 06.18.03, 5:01 PM ET   By Jose Maria Amarilla ASUNCION, Paraguay (Reuters) - South American leaders vowed Wednesday to make the moribund Mercosur trade bloc a common market by 2006 in an effort to counter U.S. dominance in Americas-wide free trade talks. Galvanized by the new presidents of Brazil and Argentina, the bloc is also looking to expand after four years of near paralysis triggered by Brazil's currency crises in 1999 and 2002 and Argentina's economic collapse last year. "Strengthening Mercosur is essential for carrying out negotiations with other countries and trade blocs," Brazilian leader Luiz Inacio Lula da Silva said. "In this way, South America's strong presence in the world will be guaranteed." Mercosur -- or the Southern Cone Common Market -- was founded in 1991 by Argentina, Brazil, Paraguay and Uruguay. Bolivia and Chile are associate members of the world's third-largest trade bloc comprising 240 million people. The bloc functions as a customs union. People and goods do not move freely across borders, and constant disputes arise over a few remaining tariffs, dumping and farm subsidies. Argentine President Nestor Kirchner -- who took office three weeks ago vowing to favor Mercosur over the United States and Europe -- said Venezuela, Colombia, Peru and Ecuador should be incorporated into the bloc. Venezuelan President Hugo Chavez, a guest at Wednesday's summit, backs the same goal. South American leaders want to bolster Mercosur to present a strong front in talks on the Free Trade Area of the Americas, the 2005 launching of which is U.S. President George W. Bush's top policy priority in Latin America. "We should not allow ourselves to be guided by imposed, predetermined timetables, but rather by the outcome of mutually beneficial negotiations," said Kirchner, Argentina's sixth president in 18 months. On Tuesday, South American economy ministers and central bank presidents renewed calls for working toward common macroeconomic goals adopted in 2000, before Argentina's economic crisis sent shock waves throughout the region. And Argentina proposed the creation of a monetary institute to coordinate policies and eventually design a single regional currency along the lines of the successful euro.

<a href=www.falkland-malvinas.com>MercoPress-Falklands-Malvinas Tuesday, 17 June

The United Nations Special Committee on Decolonization meeting in New York Monday June 16 regretted that, in spite of the widespread international support for a negotiation between the Governments of Argentina and the United Kingdom that includes all aspects on the future of the Falkland Islands (Malvinas), the implementation of the General Assembly resolutions on that question has not yet started.

Adopting the resolution on the question of the Falkland Islands (Malvinas) by consensus, the Committee also requested both Argentina and the United Kingdom to consolidate the current process of dialogue and cooperation through the resumption of negotiations to find as soon as possible a peaceful solution to the sovereignty dispute.

The Committee’s action followed a discussion involving over 25 speakers, including the new Argentine Foreign Affairs Minister, Mr. Rafael Bielsa, as well as petitioners from the Falkland Islands (Malvinas), Councillors Mike Summers and John Birmingham.

Rafael Bielsa, Minister for Foreign Affairs, Trade and Worship of Argentina, said that his country’s willingness to peacefully solve the sovereignty dispute had not been met by a corresponding willingness from the United Kingdom. In a joint statement in 1989, Argentina and the United Kingdom had agreed to normalize bilateral relations and to apply a formula for sovereignty by which both countries safeguarded their positions in the sovereignty dispute over the Malvinas Islands, South Georgia and South Sandwich Islands.

While some of the understandings under the formula on sovereignty reached between Argentina and the United Kingdom on practical matters had proved useful, Mr. Bielsa noted that the understandings were not a substitute for a definitive solution of the sovereignty dispute. A solution could only be achieved by resumed negotiations between Argentina and the United Kingdom.

However Falkland Islands Legislative Councillor said that the Argentine claim to the Falklands was baseless, because it relied solely on the dubious bases of history and territorial integrity. “The so-called occupation of the Falklands probably never happened, and, if it did, was very short lived. Self-determination for the people of the Falkland Islands must be the guiding principle for the United Kingdom, Argentina and the Committee. The people of the Falkland Islands did not wish to change from British administration to an Argentine administration”. With a new Government in Argentina, he added, there was an opportunity for Argentina to demonstrate a new political maturity on the world stage. In the future, no resolution on the Falkland Islands should be brought which did not note the right to self-determination of all peoples.

At no time, stated Uruguay’s representative Mr. Felipe Paolillo did Argentina challenge the right of the people of the Malvinas to freely determine their political status and pursue their economic, social and cultural development. Argentina had always said it would respect the way of life of the inhabitants of the Malvinas. Those inhabitants could choose to live under either Argentine or British sovereignty. But they could not choose to be British subjects while living on Argentine territory. Introducing the resolution, Chile’s representative Mr. Heraldo Muñoz acknowledged that the question was a special one different from other colonial cases, due to the sovereignty dispute between two States. It stated that the only way to put an end to the dispute was through a negotiated solution between the two parties, who were called on to resume dialogue and negotiations on the issue. He supported Argentina’s sovereignty rights and reiterated that the only way forward was through bilateral negotiations. There were no reasons to continue postponing a solution to the Malvinas question.

Statements were also made this morning by the representatives of Peru (on behalf of the Rio Group), Paraguay (on behalf of the Southern Common Market (MERCOSUR)), Brazil, China, Venezuela, Dominican Republic, Indonesia, Cuba, Côte d’Ivoire, Syria, Tunisia, Russian Federation, Bolivia, Republic of Congo, Ethiopia, United Republic of Tanzania, Antigua and Barbuda, Grenada and Papua New Guinea.

Other petitioners addressing the Committee were Falklands Councillor John Birmingham, and former Islanders living in Argentina James Douglas Lewis and Alejandro Betts. The Committee, formally known as the Special Committee on the Situation with regard to the Implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples, is commonly referred to as the “Special Committee of 24”. (United Nations sources).-

Daily Research News

The ‘2003 Latin American Marketing Report,’ published this week by Strategy Research Corporation (SRC), now part of Synovate, presents buying power estimates for 18 countries, plus Puerto Rico, and 70 metropolitan markets across Latin America. According to Rick Tobin, president of SRC and co-author of the report, a few islands of economic brightness have surfaced in an ocean of South American gloom. Latin American nations located closest to the United States appear to have fared better in general than those furthest from the U.S., according to Dr. Adolfo Chiri, SRC's chief economist, the report's other co-author.

Argentina, Uruguay, Paraguay and Venezuela (a notable exception to the ‘proximity’ rule) led the 10% downturn in consumer buying power in Latin America, estimated to total $1.2 trillion.

While the combined economies for the region are not experiencing growth, there are some obvious winners and losers. Puerto Rico and Mexico have the highest levels of average buying power per household, among the 125 million Latin American households, the report says. Twenty-two percent of Mexicans and 21% of Costa Ricans feel they are personally better off economically than in the previous year, while 64% of Latin Americans feel that their personal economic situations are worse than the year before.

Optimistically, 58% of Latin Americans expect their personal economic situations to be the same or better next year. At the same time, 54% of Latin Americans consider that their countries' economic situations will be the same or better next year, while 38% believe their country's economic situations will be worse. It is important to note that Argentina experienced a 62% decline in consumer buying power this year, while other countries, including Ecuador, experienced an 18% growth in buying power for the same period.

Twenty-five percent of Latin American households report doing grocery shopping daily. Sixty percent prefer grocery shopping in supermarkets, while 28% shop for groceries in traditional markets. Interestingly, shoppers are influenced most by quality, rather than price or taste when making their purchasing decisions.

Unemployment and security are among the leading problems that concern Latin Americans, while urban transportation and fixed phone services are the services with which Latin Americans are least satisfied.

In electronic services, 85% of Latin American households connected to the Internet do so by dial-up connection. Seventy-five percent of Internet users use it primarily for e-mail, while 63% report using online banking for paying bills. Latin Americans listen to the radio an average of 19 hours per week.

Further information is available at www.strategyresearch.com

Monday, 16 June

<a href=www.falkland-malvinas.com>MercoPress. Asunción, the capital of Paraguay that currently holds the chair of Mercosur will be hosting a presidential summit this Wednesday to which Venezuelan President Hugo Chavez has also been invited.

The summit takes place at a very special moment following Argentina and Brazil’s official commitments to revamp Mercosur, turning the trade block into a strong instrument that should rapidly expand to the rest of South America beginning with Peru and Venezuela.

Mercosur currently has four full members, Argentina, Brazil, Paraguay and Uruguay, plus associate members Chile and Bolivia.

Brazilian president Luiz Inacio Lula da Silva and his Argentine counterpart Nestor Kirchner have agreed to the creation of a “strategic alliance” between Mercosur two main members, that with the support of the other countries will address an agenda of “actions and results rather that speeches”, as was highlighted during Mr. Kirchner’s recent visit to Brazil.

Rapid integration of South America, the creation of a directly elected Mercosur Parliament, and an only position regarding trade and cooperation discussions with United States, the European Union and in the framework of the World Trade Organization are some of the ambitious points to be considered during the two days summit in Paraguay by Mercosur, Chile and Bolivia’s presidents.

In the final ceremony Paraguay will hand Uruguay the six months pro tempore chair of Mercosur that will end in December when Argentina takes over.