Mercosur, the economic agreement between Argentina, Brazil, Uruguay and Paraguay that was first signed in 1991, was originally designed to promote the free movement of goods, services and people between the member countries. But a series of trade disputes between the two most powerful members—Argentina and Brazil—threaten to undermine the customs union.

The Argentina Independent asked local people what they think about Mercosur and how they believe it affects Argentina.

Martin, 27, tour guide, Ramos Mejia

I personally think that Argentina has everything that it needs; we don’t need to suck up to anybody. My biggest pet peeve is the immigration policy. Argentina allows anybody to come into the country. And unfortunately, they bring in drugs. We can’t just allow anybody in here. But Argentina needs to be more progressive. Democracy is still a very new thing here.

Alberto, 60, vender, Once

Mercosur is very good for Argentina because it has really benefited our country in terms of tourism and the economy. It also is good for the people who come here to spend money. That is what Mercosur is, and nothing more.

Kim, 21, student, Recoleta

I personally think it is positive for Argentina and other countries not only for how it helps the economy but also because it makes these countries closer and encourages them to cooperate more. I see some other international economic alliances as being power struggles but Mercosur is more respectful of benefiting all the countries, especially in the area of jobs.

Sebastian, 24, student, Quilmes

Mercosur is one of the markets that integrate commercialization, which really has a positive effect on everything else. For example, there are products made in other countries that would be really expensive for us to import but within the Mercosur agreement, we can share products that cost us less.

Canina, 37, school worker, Retiro

In Latin America we are rich in our resources and Mercosur allows us to open doors to each other, especially with [associate members] Bolivia and Peru. It creates a union between Latin American countries. Because of this we have free trade and can we are able to provide ourselves with a lot of things. It breaks barriers between us. Before Argentina had to export things that we needed ourselves. It also helps stop immigration.

During the summit between the president of Chile, Sebastián Piñera, and the US president, Barack Obama, it was proposed that the Pacific Free Trade Agreement (FTA) would be improved. 10,000 people rejected the nuclear energy agreement.

On Monday, in Chilean government offices, the leaders of both countries held a press conference. The Chilean head of state called for a deepening of the FTA between the two Pacific countries. Meanwhile, the US president suggested incorporating Colombia and Panama, to achieve the “largest trading bloc in the world.”

Furthermore, Piñera said to Obama that “free trade must not be only goods but also ideas, not just one way but mutual, and not just investment but also technology.” Obama described Chile as “one of his closest associates”, while adding that the countries are “expanding clean energy partnerships”.

Meanwhile, in contrast to the show of unity between the presidents, Chilean social organisations marched through the streets of Santiago to denounce the agreement of nuclear energy cooperation reached by the two governments.

The mobilisation was carried out by 10,000 people from 40 different civil society organisations on Sunday.

The executive director of Greenpeace Chile, Matias Asún, said that “nuclear energy does not solve the problem of global warming.” He stated that it “generates less than 10% of the world’s energy.”

Organisations which participated in the march were Chileambiente, Ecosistemas, ACCION and the Atacama Defence Bureau, among others.

Story courtesy of Agencia Púlsar, the news agency of AMARC-ALC.

Talks are in progress at the bi-annual EU-Latin America and Caribbean Summit and it was announced yesterday that talks to create one of the biggest free trade zones in the world will re-launch next July. EU president Herman Van Rompuy described the project as having “tremendous economic potential”.

The plans were to create a free trade zone between the EU and El Mercado Común del Sur (Mercosur), which includes Argentina, Brazil, Paraguay and Uruguay. The first negotiations were suspended in 2004 due to differences over access to the EU market for Mercosur agriculture and for EU services to the Mercosur market.

These talks have been opposed by France and nine other EU countries because of fears that meat imports will harm European farmers. They believe that Latin American imports would cost European farmers annual losses worth around €5bn.

Argentine president Christina Fernández de Kirchner, criticised protectionism, saying: “We must address the problem of protectionism in all its forms, be they of fees, subsidies, tax developments, tax extensions, export promotion or dumping. We must address the concept of protectionism in its entirety and in all its forms.”

She also accused the EU of “fearing for its subsidies” and called on all the countries to work together in building “a realistic economy that is not based on speculation.”

Spanish prime minister Jose Luis Rodriguez Zapatero supported her, saying: “In an increasingly globalised world, where the answers to prosperity are in the union of efforts, the capacity for economic growth and social policy is in the opening and liberalisation of borders.”

President of the European Commission, Jose Manuel Barroso, stressed that the “concerns of some sectors” had to be taken into account, but argued that the trade deal could generate annual benefits of €4.5bn for both sides of the Atlantic.

The Argentine president has been vocal in her criticisms during these meetings. She warned developed countries not to blame foreign workers for the economic crisis, saying: “We view with great concern the discriminatory treatment of immigrants in developed countries.”

She also took this summit as an opportunity to ask the UK to resume negotiations over the sovereignty of the Falkland/Malvinas islands.

Although agreement on these subjects has yet to be reached, the EU has made the deals it hoped for with Colombia, Peru and the Central American countries (Costa Rica, Honduras, Guatemala, Panama, El Salvador and Nicaragua). The free trade deals will be signed tomorrow.

Laura Chinchilla was sworn in as president of Costa Rica on 8th May, promising to “work for a Costa Rica able to maintain moral leadership in the world thanks to defending peace, liberty and human rights.”

After winning 47% of the votes in February, the 51-year-old leader of the centre-left National Liberation Party has become the country’s first female president.

She was accompanied by her husband, her son and her parents at the open air ceremony that was attended by thousands of supporters. The presidents of Mexico, Colombia, Ecuador, Nicaragua, El Salvador and Georgia were also in attendance.

In her inaugural address, the new president said she would reach out to citizens, rather than favouring special interest groups and promised to move the country towards an innovative, intelligent and entrepreneurial future.

Chinchilla’s presidential career starts at a difficult time for Costa Rica. Ex-president Óscar Arias leaves behind a 5% fiscal deficit after he increased public spending during the economic crisis. This will make it difficult for president Chinchilla to follow with her pledges to increase help for the poor and the elderly. The president of the central bank has already warned that if there is no increase of income, spending will have to be restricted.

President Chinchilla will also be taking over in talks for a trade pact between Central America and the European Union, which have recently stalled, as well as organising trade deals with Singapore and China.

When she won the election in February, she promised to tackle violent crime and drug-trafficking, whilst continuing the free-market policies of ex-president Óscar Arias. However, she faces difficulties in congress, as her party is not in the majority.