Chavez and the leaders of Brazil, Argentina, Uruguay and Paraguay formalized the bloc’s expansion to include Venezuela, which Chavez claims as a victory against Washington’s “imperialistic” economic plans for the hemisphere.
Bolivian President Evo Morales, a close Chavez ally, attended the signing ceremony as an observer.
“We are defeating the hegemonic pretensions” of the United States “and today we have placed a new cornerstone for the freedom and unity of South America,” Chavez said to a rousing applause in a packed Caracas auditorium.
Brazilian President Inacio Lula da Silva called on fellow Mercosur members to maintain political solidarity when facing challenges from countries outside the region, but said that anti-Americanism was not a hallmark of the regional trade bloc.
“We have the right to demand there be no type of meddling in our region,” Silva said. “Today we are here to say to the world that we don’t want to fight with anybody.
“We are peaceful countries. Each country should maint-ain its relations with the United States.”
Oil-producing Venezuela’s entry into Mercosur is expected to boost the economic clout of the trading bloc, bringing Mercosur’s combined gross domestic product to S$1 trillion a year οΎ— more than three -quarters of South America’s total economic activity.
Under the agreement, Venezuela will be required to adopt a common external tariff system within four years.
The level of those tariffs will vary depending on the product but will average about 12 percent, said Eduardo Sigal, Argentina’s under secretary for economic integration.
The Nassau Guardian
