Brazil’s Lula Swings Through Chile and Argentina Under Chavez’s Shadow

Presidents Chavez, Kirchner and Lula Luiz Inácio Lula da Silva, the president of Brazil is scheduled to visit Argentina and Chile, next Thursday and Friday, April 26 and 27, with energy integration and trade as the main formal issues. This is a trip, however, that can also be described as an incursion through Latin America's different Socialist populist "blends".

Although Argentina's populist Nestor Kirchner and Socialist Lula always have time for smiling pictures and comments on soccer – they rule South America's leading powers of the sport – it is known that behind doors and at the negotiation table things are different.

Bilateral trade is significant for both sides and the challenge of current and future energy supplies has become crucial since Argentina is running short of reserves and Brazil is determined to limit foreign dependency.

But present on the stage is also Venezuela's Hugo Chavez with his fat check book and promises of "cheap" oil to those who support his Socialist XXI century development project, and in practical terms questioning Brazil's natural leadership of the region.

Furthermore Bolivia's Evo Morales sponsored by Venezuela decided the nationalization of oil and gas resources with limited compensation for Brazil's huge investments in developing the industry over the last ten years.

Lula's proven pragmatism must then face the challenges of this blend of nationalism with populism, which also happens to attract Argentina's Kirchner and his mid seventies protest mentality, particularly in an electoral year.

Furthermore Chavez has an inclination for Argentine sovereign bonds, and has openly criticized Lula's bio fuels and ethanol projects, arguing they will escalate world food prices, (and for having decided on a strategic alliance with the White House on developing alternative fuels).

Thus to ensure Brazil's long standing strategic policy of privileging Argentina in trade and energy integration (they both share access to Bolivia's vast resources of natural gas) Lula must enchant the president from the cold south Patagonia, who also needs Brazil to set distance from an ever absorbing Chavez, who doesn't seem to have the correct allies in the world.

On Friday, in Chile, Lula should feel more at home: Michelle Bachelet is the fourth president of a coalition that has successfully blended free enterprise with Socialist responsibility, becoming South America's showcase.

Brazil traditionally has been the natural ally of Chile helping it to counterbalance the pressure from Argentina and Peru.

Lula is scheduled to sign several bilateral political and economic agreements and both presidents will be discussing the "political situation of South America and energy integration", according to the official release.

Friday afternoon Lula da Silva will be one of the main speakers at the Latin America Economic Forum in Santiago with an audience made up of government officials and the cream of world corporations' leaders.

Mercopress

Tags:

You May Also Like

Brazil Wants Kyoto to Protect Forests

Actions to prevent illegal deforestation should be one of the mechanisms of the Kyoto ...

Oil and Gas Production Up 12% in Brazil

In January of this year, Petrobras produced an average of 1,750,529 barrels daily in ...

Brazil Embraer's Legacy executive jet

Czechs Get Brazil Embraer’s Legacy Jet Number 100

Brazilian aircraft company Embraer announced yesterday, March 22, the delivery of the 100th unit ...

Brazil Starts 8,000-Men War Games on Border as Message to Neighbors

With the "main target" being the recovery of a bi-national hydroelectric dam that has ...

Brazilian composer Antonio Carlos Gomes

Brazil’s Greatest Classical Composer Was Never More than a Salieri

There were several false starts at presenting staged opera in Brazil during the late ...

Venezuela's President Chavez waves to a crowd

Bush Shows In Brazil How to Give Chavez the Silence Treatment

US President George Bush told his Brazilian counterpart that he has decided to "minimize" ...

Brazilian Firm to Use Chevron Technology

Chevron Phillips Chemical Company has entered into a contract to license its proprietary loop ...

International Private Investors Prefer Mexico to Brazil

Private-equity money continues to increase its hold on corporate deals in Latin America, where ...

Brazil Loses 1.5 Million Jobs a Year Due to Piracy

Brazilian President Luiz Inácio Lula da Silva met yesterday with the Secretary General of ...

Report on Hundreds of Brazilians Disappeared During Dictatorship Finally Concluded

Testimonies of victims and their families, testimonials of political repression agents and 47,000 photographs ...