Guyana, Suriname join new 12-nation South American bloc

Monday, December 13, 2004

CUSCO, Peru: Guyana and Suriname were among 12 South American nations that last week launched an ambitious project to integrate the 361-million-people-strong continent into an economic and political bloc dubbed the South American Community of Nations.

Twelve nations signed the Cusco Declaration in this Andean city to give birth to the group, which Venezuelan President Hugo Chavez said could take a shape similar to the European Union in 20 years.

"We are here to give ... soul, heart and life to the dream of (Simon) Bolivar," Peruvian President Alejandro Toledo said, referring to the South American independence icon who fought Spain in the 19th century and hoped to unify the continent into one country.

In addition to Chavez and Toledo, the presidents of Brazil, Colombia, Bolivia, Chile, Suriname and Guyana attended the summit, while the leaders of Argentina, Uruguay, Paraguay and Ecuador sent representatives in their place. The absence of four presidents was not well received by the leaders who attended the event, diplomatic sources said.

Analysts said the absence of Argentine President Nestor Kirchner -- who failed to show up for health reasons -- is a sign that he has reservations about the project, which regional rival Brazil wants to lead. Brazil will host the bloc's first summit early next year.

Brazil and Argentina will need to patch up their differences for the project to advance, and the two regional giants should become the engines powering the South American Community of Nations, analysts said.

The bloc, which includes the Mercosur and Andean Community economic and trade blocs, also needs to overcome simmering border disputes Bolivia and Peru have had with Chile.

"We have to start with good relations between presidents without paying attention to the profound political and economic differences between South American nations," said Peruvian analyst Mirko Lauer.

In their declaration, the presidents say they represent their peoples' aspirations "in favor of the integration, unity and construction of a common future."

The document says the South American group will develop through "political concert and coordination."

It adds that it will deepen the "convergence" of the Mercosur and Andean Community economic blocs "through the free trade zone."

The 12 nations have a combined gross domestic product of more than 800 billion dollars and export 188 billion dollars in goods a year.

Some media view the bloc's creation as the first step toward a single currency and constitution, while others say it will take two decades for it to emerge due to a lack of political will.

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