Bulletin on the Integration of Latin America and the Caribbean

Bulletin on the Integration of Latin America and the Caribbean N 188 July 2013 Contents SELA takes part in MERCOSUR Summit (1-2) UNASUR holds meeting of Group of Experts in Energy (2-3) Institutional progress of the Pacific Alliance (3) Agreement reached on ALBA economic space (3-4) PARLATINO Commissions gather in Caracas (4) New SIECA Secretary-General sworn in (4-5) CABEI re-elects President (5) CARICOM is strong and united (6-7) Dominican Republic negotiates entry into CARICOM (9-10) Guyana and Suriname join MERCOSUR (10) Central America coordinates priorities (10-11) Briefs (11) -Peru takes over Pro Tempore Presidency of Andean Community -ALBA to receive support from ALADI Meetings on integration in August (11) ACS endorses Sustainable Tourism Zone (7-8) Integration boosts trade in CARICOM (8-9) SELA takes part in MERCOSUR Summit Permanent Secretariat of SELA Caracas, 16 July.- The Permanent Secretary of the Latin American and Caribbean Economic System (SELA), Ambassador Roberto Guarnieri, participated in the Summit of Heads of State and Government of the Common Market of the South (MERCOSUR), Associate States and special guests, held in Montevideo, Uruguay, on 12 July. In a joint communiqué, the Presidents of the Member States of MERCOSUR welcomed the Bolivarian Republic of Venezuela s Pro Tempore Presidency of the organization, wishing Venezuelan authorities the best of success in their tenure and putting at their disposal the will and experience of the rest of the Member States to contribute to the achievement of goals and priorities. The Presidents expressed their deepest sympathy for the death of Venezuelan President Hugo Chávez Frías and recognized him as an extraordinary figure who promoted the construction and strengthening of regional union. In the final statement of the meeting, the Heads of State reaffirmed the strategic decision of regional integration, based on shared values and respect for diversity, sovereignty and independence of States, aimed at the development of the economic, social, political and civic areas of MERCOSUR. The Latin American and Caribbean Integration Bulletin is a publication of the Permanent Secretariat of SELA which was generated within the framework of the UNESCO-SELA Convention Communications for the Integration of Latin America and the Caribbean of the UNESCO International Programme for the Development of Communications (IPDC). Legal deposit: pp 199703CS183 - ISSN: 1317-1844 - Latin American and Caribbean Economic System (SELA) - Permanent Secretariat, Apartado Postal 17035, Caracas 1010-A, Venezuela - Visit SELA's Web site in Internet: www.sela.org - Send your comments or suggestions to SELA to: difusion@sela.org

In terms of development, they underscored the need to deepen, from a multi-dimensional perspective, the adoption and implementation of public policies aimed at eradicating poverty and to ensure the social, political, productive and economic inclusion of peoples. They also reiterated that the consolidation of the Customs Union requires making strides, among other aspects, with intraregional trade facilitation, reduction of asymmetries, access to financing, and integration of production structures, which will strengthen the regional model of inclusive economic development, whose benefits should be distributed among all partners. Similarly, they welcomed the signing of the Framework Partnership Agreement between MERCOSUR and the Cooperative Republic of Guyana and the Republic of Suriname, which became Associate States. They also expressed their satisfaction with the achievements made by Bolivia in its process to join MERCOSUR, which holds the fifth place among the major economies of the world. The presidents reaffirmed their interest in making progress with a bilateral agreement with the European Union, based on commitments made within the framework of the Ministerial Meeting between MERCOSUR and the European Union, along with the CELAC-EU Summit, held in Santiago de Chile from 25 to 27 January 2013. In addition, they welcomed the meeting held by the Foreign Ministers of MERCOSUR and the Central American Integration System (SICA), in which MERCOSUR decided to request participation in SICA as an observer country. In order to overcome the asymmetries among Member States, the leaders underlined the strategic importance of the Fund for Structural Convergence of MERCOSUR (FOCEM), as a major regional solidarity tool to foster structural convergence, competitiveness, social cohesion and well-being of peoples, particularly in smaller economies and less developed regions, to support the operation of institutional structures, and strengthen the integration process. In this connection, they recognized the importance of the development of ICTs for socio-economic and cultural progress of their countries, highlighting the role of massive provision of broadband service and infrastructure for that purpose. As usual, the MERCOSUR Presidential Summit was preceded by the Regular Meeting of the Common Market Council (CMC), in which Ambassador Guarnieri also participated as a guest. The II Business Forum of MERCOSUR was also held within the framework of this meeting. The Forum s main objective is to bring together the business community and conduct a joint reflection with governments and public enterprises on the future of the integration process in the region. Participants reiterated the key role of MERCOSUR s productive integration policy and the participation of small and medium-sized enterprises in the process. As of 15 August the suspension of Paraguay will be lifted, which will make it possible for that country to participate in the activities and debates of the organs of MERCOSUR. On that date, the reasons for the suspension will no longer be valid, because there will be a new government elected by the people. Finally, it was reported that MERCOSUR will coordinate the shared use of trade offices, taking advantage of infrastructure capabilities in many countries. UNASUR holds meeting of Group of Experts in Energy Taken from the UNASUR Web site Lima, 16 July.- The Secretary-General of the Union of South American Nations (UNASUR), Alí Rodríguez Araque, attended the XV Meeting of the Group of Experts in Energy (GEE) of UNASUR s Energy Council. Rodríguez Araque explained that energy exchanges in the region are still insufficient, taking into account the vast natural resources available to provide power to the member countries of the union. We have some energy exchange with Colombia, but it is still very small. However, we can solve this situation by increasing energy sources in a dynamic process. We have the urgent responsibility to speed up the dynamic development of our peoples. Failing to do so would be a mistake, he said. During the working meeting, Rodríguez underscored the need of implementing reforms in the legal field that allow for making progress towards energy integration. This implies going beyond mere economic development so as to develop other potentials of the region. Rodríguez stressed that Venezuela has vast energy resources, but also great needs for food imports. 2/

Our countries have complementary economies. It is necessary to create a technical research centre for the region in order to make the best use of this immense wealth in favour of the development of our peoples, he said. Where there are electric grids there is development. They are a key factor for both economy and society, he said. During the meeting, a report containing the South American Energy Balance was submitted, and the Latin American Energy Organization (OLADE) made a presentation on its work. Similarly, the meeting adopted a timetable and a questionnaire for a feasibility study on the creation of the UNASUR Energy Research Institute, and the results of the First Meeting of National Oil and Gas Companies were submitted. Institutional progress of the Pacific Alliance Taken from the Pacific Alliance Web site Bogotá, 16 July.- The Pacific Alliance countries have taken important steps towards the entry into force of its constitutive Framework Agreement, which contains the parameters, institutional architecture and regulations that will govern the process for political and economic coordination and cooperation among its Member States. After it was signed on 6 June 2012 in Paranal, Chile, the framework agreement was adopted by Mexico on 27 January 2013, making the corresponding deposit of the ratification instrument to the Pro Tempore Presidency of the Agreement. In turn, Chile approved it on 22 May and made the deposit of the ratification instrument on June 20 to the Pro Tempore Presidency held by Colombia. Peru and Colombia are still pending some procedures for approval. Peruvian Congress has already approved the agreement and it is making the necessary arrangements for the executive branch to issue the corresponding decree. In Colombia, the Constitutional Court is making a review after the Presidency issued the Act approving the framework agreement on 22 May 2013. Agreement reached on ALBA economic space Taken from the ALADI Web site Montevideo, 16 July.- The agreement of Economic Complementation (ACE), which will govern the future extended economic space between Bolivia, Cuba, Venezuela and Nicaragua, as well as the agreement between the General Secretariat of ALADI and the Ministry of Foreign Affairs of the Plurinational State of Bolivia, were signed at the headquarters of the Latin American Integration Association (ALADI), under the aegis of the 1980 Treaty of Montevideo (TM80). The Minister of Foreign Affairs of Bolivia, David Choquehuanca Céspedes; the Minister of Foreign Affairs of Venezuela, Elías Jaua Milano; the Vice-President of the Council of Ministers of Cuba, Ricardo Cabrisas Ruis; and the Minister of Development, Industry and Trade of Nicaragua, Orlando Solórzano Delgadillo, signed the Economic Complementation Agreement, which is intended to create the necessary conditions for the implementation of the economic space of the Bolivarian Alliance for the Peoples of our America Peoples Trade Treaty (ACE ECOALBA-TCP). This agreement provides for the adoption of a programmatic and regulatory regime for economic and commercial relations among the member countries, primarily based on three areas of action: encouraging trade growth, productive complementarity and cooperation. Moreover, it is open to accession, prior negotiation, of the remaining member countries of ALADI and ALBA-TCP, and its guiding principles are solidarity among peoples and a special treatment to countries with a relatively lower economic development. In addition to Bolivia, Cuba, Venezuela and Nicaragua, the member countries of ALBA include Ecuador, Dominica, St. Vincent and the Grenadines, and Antigua and Barbuda. At the signing ceremony, the Secretary-General of ALADI, Carlos Chacho Álvarez, described the signing of this agreement as transcendental and stated that the fact that the members of ALBA have agreed on the legal and institutional framework of ALADI to formalize such an important commitment reaffirms, once again, that the Association and the TM80, in view of their guiding principles including pluralism and flexibility and the mechanisms that they envisage, are called upon to provide, without a doubt, the space for convergence of the various integration groups existing in Latin America and the Caribbean, all of which are valid instruments to achieve the same objectives of development and well-being of peoples. 3/

Similarly, he noted that the registry of ALBA agreements within the legal acquis of the Association guarantees that the principles and postulates of a genuinely Latin American process like that are necessarily incorporated and taken into account in any future scenario of convergence of the agreements in the region. Finally, he said that ALADI puts its legal and institutional framework at the service of the ALBA countries to continue materializing the commitments arising from that integration initiative. In turn, the authorities of the four signatory countries made emphasis on the characteristics and the principles of solidarity and complementarity on which the agreement is based, highlighting the importance of this agreement and agreeing that it was a historic milestone in the construction and development of the ALBA-TCP. They also recognized ALADI as a pillar of Latin American economic integration. During the ceremony, the Foreign Minister of Bolivia, David Choquehuanca, and ALADI Secretary General, Carlos Álvarez, also signed a cooperation agreement that includes support for negotiations, training, exchange of information and documents, as well as actions to facilitate market access. The instrument also recognizes the need to intensify these actions in specific areas of interest for the Bolivian Foreign Ministry so as to benefit its technicians and negotiators. PARLATINO Commissions gather in Caracas Taken from the PARLATINO Web site Panama City, 24 July.- Venezuela served as the venue for the meeting of four of the 13 Commissions of the Latin American Parliament (PARLATINO). The legislative body pledged to deepen Latin American and Caribbean unity so as to materialize one of the most cherished dreams of Liberator Simón Bolívar. The sessions were opened by PARLATINO President Elías Castillo, who reported that the PARLATINO headquarters located in Panama is about to be completed and will be at the service of the Latin American peoples. It was a dream that began with zero cents and is now nearing completion. This beautiful building located in a privileged area of Panama will serve as a platform for many international events such as the Ibero-American Summit, which will begin in October this year, he said. He pointed out that PARLATINO will mark 50 years of operation in 2014, and to celebrate that date an event involving relatives of the founders of the Latin American Parliament is being planned. In addition, it will publish a book containing the history of each one of the parliaments that make up the legislative body. Castillo recalled that PARLATINO is one of the oldest parliaments in Latin America, which is aimed at working for the unity of Latin America and the Caribbean, and is at the command of the authorities of the Community of Latin American and Caribbean States (CELAC) as the legislative arm of that organization. To achieve this we will make every effort in order to incorporate several islands in the Caribbean, such as Haiti, Jamaica and Trinidad and Tobago, thus adapting ourselves to the demands of CELAC in this regard, since PARLATINO is perfectly suited to become the legislative body of that organization, he said. New SIECA Secretary-General sworn in Taken from the SIECA Web site Guatemala City, 15 July.- In a formal ceremony held in the headquarters of the Central American Economic Integration System (SIECA), the Minister of Economy of the Republic of Guatemala, Sergio de la Torre, on behalf of the Council of Ministers of the Central American Economic Integration System (COMIECO), sworn in and handed over the position of Secretary-General of SIECA to Carmen Gisela Vergara, of Panama. During the ceremony, de la Torre said: I am pleased to appoint Mrs. Gisela Vergara as Secretary-General of SIECA. The new Secretary-General has vast experience in both the public and private sectors. She was Minister of Trade and Industry in her country, Panama, and has an excellent academic background. In turn, Mrs. Vergara said she felt deeply honoured and proud to serve regional integration, and reaffirmed her commitment. It is a great honour for me, as a Central American citizen, to take over the post of Secretary-General of the Central American Economic Integration System. And I invite you all to actively join us in this important path towards the economic and social development of our region, and to support our efforts for effective integration with the world, she said. 4/

Participants in the event included Ambassador Fernando Carrera Castro, Minister of Foreign Affairs of Guatemala; José Adonis Lavaire Fuente, Secretary of Industry and Trade of Honduras; the SIECA ambassadors accredited to Guatemala, and the Vice-Ministers of Economy and Foreign Affairs of Guatemala, among others. Mrs. Vergara has taken office for a four-year period, succeeding Ernesto Torres Chico, pursuant to COMIECO s Resolution 313-2013 dated 5 July 2013. The new Secretary-General has a degree in Law and Political Sciences and extensive professional experience in Panama s public and private sector. She is an expert in foreign trade, entrepreneurial development and negotiations. She has a Postgraduate Degree in banking and financial law from the Universidad Externado of Colombia, a Master's Degree in private law from the Universidad de Panamá, and a Specialization in international trade negotiations from the Universidad de Santiago de Chile. Mrs. Vergara has worked as a Deputy Director for Mexico and Panama at the Central American Bank for Economic Integration (CABEI) and has held important public positions in Panama, including Minister of Trade and Industry, Vice- Minister of Foreign Trade; Manager of Business Technology Accelerator of Panama; National Director of Export and Investment Promotion; Deputy Director of Pro Panama, and Executing Judge in the Savings Bank of Panama, among other important positions. CABEI re-elects President Taken from the CABEI Web site Tegucigalpa, 17 July.- The Board of Governors of the Central American Bank for Economic Integration (CABEI) has re-elected Executive President Nick Rischbieth Gloë for the five-year period that will start on 1 December 2013 and will expire on 30 November 2018. Rischbieth Gloë has a degree in Economics from Rice University, an MBA from Washington University in St. Louis, Missouri, and a PhD in Finances from the Institute of Money and Capital Markets of the University of Hamburg, Germany. Before joining CABEI, Rischbieth held the post of Vice President of the Division of New Issues in Capital Markets and in the Division of International Financial Markets of the Dresdner Bank AG in Frankfurt, Germany, covering countries in Asia and Oceania. Rischbieth has had a long career at the service of CABEI. He began his duties in 1995 as Treasurer. In 2003, he was appointed Chief Financial Officer and then Executive Vice President in 2007. Later on, the Board of Governors of CABEI selected him for the position of Executive President, based on a competition among citizens from all the founding countries of the bank. Rischbieth has been a staunch supporter of human development initiatives to increase the CABEI s impact on the region. Among his main achievements during his career at CABEI, it is worthwhile noting that Rischbieth led the institution to the rank of investment bank vis-à-vis major international rating agencies, which opened the doors to the capital markets for CABEI and empowered it to form a global platform in order to obtain resources to finance its growth. In addition, during his first term, Rischbieth carried forward the Modernization Plan of the Bank, leading a deep restructuring so that CABEI can swiftly respond to the needs of Central America. He also launched various initiatives related to climate change, renewable energy, water and sanitation. Under his management, the Bank negotiated the expansion of a new capitalization scheme, which began to operate in 2012. He continued with CABEI s actions as regards compliance with the Institutional Strategy 2010-2014 Competitiveness with Integration and Social Development, in order to return to its roots. Rischbieth stands out as an advocate of CABEI s interventions in favour of a balanced economic and social development in Central American nations. Rischbieth has been the main promoter of prudent financial management and the application of sound financial policies that have allowed for a steady growth, while improving results in terms of profitability, capitalization and risk management in markets. Referring to his election, Rischbieth said: Thanks to the strong support and the confidence from the Governors and the Board of Directors of CABEI we will continue consolidating the foundations of economic and social development and regional integration at the helm of this prestigious institution. 5/

CARICOM is strong and united Taken from the CARICOM Web site Georgetown, 6 July.- The Chair of the Caribbean Community (CARICOM), Kamla Persad-Bissessar, Prime Minister of Trinidad and Tobago, has affirmed the strength of the integration movement, and has urged a demonstration of steadfastness to make CARICOM an even greater force within the world community. Prime Minister Persad-Bissessar said the journey to that milestone was punctuated with accomplishments in education evinced by the Caribbean Examination Council, in health, illustrated in the successes of the Pan Caribbean Partnership for HIV and AIDS, in the global recognition of CARICOM s leadership in arresting the scourge of non-communicable diseases, and through foreign policy coordination and security, which was elevated as the fourth pillar of CARICOM. As the regional integration movement reached for even higher ideals within an ever-changing global environment, the Chair said that the current reform process was a direct attempt to bring about the institutional and structural transformations needed to give CARICOM more relevance. Within that context, she made the case for closer embrace into the CARICOM family of the Dominican Republic, the Dutch and French Caribbean islands. The Caribbean Sea unites us; it must never divide us, the host Prime Minister stated against the backdrop of the opening ceremony of the 34th Conference of Heads of Government, which coincided with the 40th Anniversary of regional integration. Underscoring the critical importance of the historic gathering in Port-of-Spain, Trinidad and Tobago, she said the extensive agenda, which spawned the peculiar challenges faced by Small Island Developing and Low-lying Coastal States (SIDS), necessitated robust deliberations on regional growth and development, which formed part of the region s Five-Year Community Strategic Plan. Given the size, remoteness, limited resource and export base, exposure to global environmental challenges and external economic shocks felt by CARICOM s membership, the establishment of a regional task force to deal with its strategic priorities in the post-2015 development agenda of the United Nations was paramount, the Chair said. Prime Minister Persad-Bissessar said she was hopeful that continued dialogue and collaboration on regional security would produce fresh initiatives and perspectives in combating threats to regional security including the penetration of our porous borders by organized criminals, the proliferation of small arms, the increase in drug and human trafficking, money laundering and corruption at ports of entry. Calling for the establishment of a regional think tank on security, she said: We must develop the regional mechanisms to combat the multiple threats to security in this hemisphere. Our people must be safe and feel safe. We have an obligation as leaders to ensure that our people are secure by demonstrating that we engage in a focused and effective war on crime and criminals. We must also attack crime at the root, which means we must develop approaches to combat poverty, unemployment, illiteracy and the rising cost of living. The Prime Minister s sentiments that CARICOM was united resonated with the CARICOM Secretary-General, Ambassador Irwin LaRocque, who said: there is much to celebrate at this milestone in our integration process. We have persevered. We have kept the faith. We have demonstrated clearly the benefits of our cooperation and collaboration. We have responded, time and again, to whatever challenges were before us, and used our unity to exercise influence in the global diplomatic arena way above our size. Today, we can boast of being the longest surviving integration grouping among developing countries and second only to the European Union in global terms. The programmes of functional cooperation and common services have deepened and expanded in health, disaster management, agriculture, the environment and education, to name a few, Secretary-General LaRocque said. A significant product of regional cooperation, he added, was the preservation of the concept of negotiating as a bloc that has produced trade agreements with six countries and numerous technical cooperation agreements. 6/

Tracing the path of developments which occurred after the landmark 1989 Grand Anse Declaration, which included the introduction of the CARICOM Single Market and Economy, and embracing Haiti, Suriname and the five Associate Members into the CARICOM family, LaRocque said that the vision of the leaders at that time triggered events from which results resonated to this day. That included adopting security as the fourth pillar and maintaining the architecture that was established during the 2007 Cricket World Cup; and the establishment of the Caribbean Court of Justice, which gives interpretation of provisions of the 2001 Revised Treaty. Trumpeting other accomplishments, Ambassador LaRocque said that intra-regional trade, further advanced by the CSME, has grown from US$ 600 million in 1990 to more than US$ 3 billion in 2012 moving from 10 percent of total trade to 15 percent. As we celebrate 40 years of integration under the theme Celebration and Renewal, it is clear from what I have outlined above that we have a lot to celebrate as substantial progress has been made in our integration movement. However, we are also certain that more could have been done and we are all aware of the shortcomings that we must address, the Secretary- General stated. In recognition of the foregoing, he reiterated the sentiments of Prime Minister Persad-Bissessar, noting that the reform process would give greater relevance to CARICOM, and importantly, would ensure that the integration construct could deliver even more tangible benefits going forward. Relevance, efficiency, effectiveness, flexibility, responsiveness, innovation and creativity, all aimed at providing improved service to our people, is the goal of this reform process. The people-centred approach to development is the driver of the change that we are striving to provide. It is at the heart of our integration arrangements and our agenda item at this meeting on treatment of persons with disabilities demonstrates our continued concern at the highest level for the welfare of our citizens, Secretary-General LaRocque said. ACS endorses Sustainable Tourism Zone Taken from the ACS Web site Port of Spain, Trinidad, 18 July.- The 24th Meeting of the ACS Special Committee on Sustainable Tourism was held in Port-of- Spain, Republic of Trinidad and Tobago, on 16 and 17 July 2013. Included in the high-level gathering were delegations from 16 countries of the Association of Caribbean States (ACS), as well as representatives from the Caribbean Tourism Organisation (CTO) and the International Federation of Red Cross and Red Crescent Societies. The Chairwoman of the Special Committee and President of the Martinique Tourism Authority, Honourable Mrs. Karine Roy- Camille, underscored that the ACS is an important forum for the sharing and exchange of experiences in common areas of development for the sustainable economic and social development of the region s countries and territories. Adding that as the region experiences a substantial increase in the arrival of tourists, it is essential to maintain and protect our natural spaces and to develop sustainable development policies and practices, the Chair recommended that efforts should be oriented towards the achievement of concrete results, avoiding duplication of efforts and increasing valued added benefits for the ACS member countries. In turn, the Permanent Secretary of the Ministry of Tourism of the Republic of Trinidad and Tobago, Mrs. Juliana Johan- Boodram, in endorsing the efforts of the ACS in the area of sustainable tourism, expressed that the SCST meeting was a great opportunity for countries of the region to share best practices and experiences as regards sustainable tourism, which in the development context is a vehicle for achieving balance, sustainable growth and poverty alleviation, as well as in promoting the culture and heritage of destinations. The Secretary General of the ACS, Ambassador Alfonso David Múnera Cavadía, in outlining the priority aspects of the ACS Sustainable Tourism Work Programme, stressed the commitment of the Association in fulfilling the mandates of the ACS Member States and highlighted the need for the active participation and engagement of all countries in fulfilling the objectives of the Work Programme. At the conclusion of the meeting, some important advancements were made within the ACS four programmatic areas of the Sustainable Tourism Work Programme, foremost of which were as follows: 7/

- The importance of the project to establish the Sustainable Tourism Zone of the Greater Caribbean (STZC), in promoting Sustainable Tourism development in the region, was highlighted as an International benchmark. The STZC initiative was endorsed as a framework for regional cooperation on sustainable tourism, and countries committed to advance the ratifications to the Convention and Protocol of this instrument and ensure its immediate implementation during the first semester of 2014. - In the area of promoting Multi-Destination Tourism (MDT), the meeting agreed that enhancing intra-regional travel and connectivity were the two main priorities. A Meeting of the Regional Tourism and Transport Authorities with the airline executives will be held on 13 November 2013 in Cancun, Mexico. The ACS is collaborating with the Latin America and Caribbean Air Transport Association (ALTA) and the Caribbean Tourism Organisation for hosting this event. - As it relates to promoting the Languages and Cultures of the Greater Caribbean, the meeting appealed for the full mobilization of ACS Member countries in the Promotion of Languages and Cultures of the Greater Caribbean and in this regard to facilitate the language training student exchange programmes. It was agreed as an immediate next step to focus on engaging the youth as well as increasing Greater Caribbean cultural awareness and exchanges through professional immersion. In the area of Promoting Safety and Security in the Tourism Industry, countries agreed on the importance of having increased sharing of experiences and strategies in relation to safety and security. In this regard, the importance of communication, education and sensitizing the local population, as well as building capacity in the area of media relations, were highlighted as priority activities. The committee proposed to organize a meeting with the chairs of Caribbean Community (CARICOM), Caribbean Tourism Organisation, Secretariat of Central American Tourism Integration, Latin American and Caribbean Air Transport Association and the United Nations World Tourism Organization to strengthen collaboration and facilitate the development of strategic partnerships and identification of resources. It was also agreed that the 3rd Meeting of the Ministers of the Tourism of the Greater Caribbean would be celebrated in Martinique on 15 October 2013. The next meeting of the Special Committee on Sustainable Tourism will be held in La Antigua, Guatemala, on 25 April 2014. Integration boosts trade in CARICOM Taken from the CARICOM Web site Georgetown, 29 July.- Intra-regional trade in the Caribbean Community (CARICOM) has been positive with significant growth in the early period of the integration movement and with the share of intra-regional to total trade increasing, on average, in the face of exogenous factors. Despite a dip in 2009, the increase in trade in 2011 was approximately thirty times the amount of US$ 0.1 billion in 1973, showing that intra-regional trade has been propelled as a consequence of integration. Trinidad and Tobago has been the region s dominant exporter. The story of trade in the Community was told on 25 July at the CARICOM Secretariat when the Regional Statistics Programme, in collaboration with the Guyana Bureau of Statistics, held a seminar on the Community s trade performance. The seminar was one of the activities to mark the International Year of Statistics, commemorated this year. The expansion of intra-regional trade and trade with third states is one of the objectives of CARICOM, which this year celebrates its 40th anniversary. The Community recorded mixed fortunes in trade with upswings that were manifestations of effective regional policies and downturns that were generally reflective of external shocks and the state of the global economy. Changes in the global environment that occurred during the past forty years impacted on the performance of the integration movement including in trade performance. Some of those changes included the removal of the preferential arrangements for the region s sugar and bananas exports with the European Union (EU); the advent of the Organisation of Petroleum Exporting Countries (OPEC) and its impact on the setting of the prices of oil and related minerals; the debt crisis of the 8/

1980s, and more recently, the global financial and economic crisis, and specifically, its impact in the EU and the United States of America (USA), two of the region s largest trading partners. Since 1973, trade among CARICOM member states tallied 17.2 percent of total exports. The USA has been the Community s most significant market for exports, accounting for 44.2 percent of CARICOM s total exports. The USA is also the main source of CARICOM s imports accounting on average for 40.5 percent of the region s total extra-regional imports from 1973 to now, and for 37.0 percent since the CARICOM Single Market (CSM). The region s imports from the USA stood at US$ 0.4 billion in 1973, US$ 5.8 billion in 2006 and US$ 7.3 billion in 2011. Exports to the EU accounted for 15.1 percent of total exports, with the EU being the second major source of imports with 15.1 percent. At the seminar on Thursday, participants learnt that growth in trade was significant in the early years of the integration movement. Between 1973, when the Community was birthed, to 1981, there as a significant increase of intra-regional exports which expanded at an average annual growth rate of 22.8 percent. The proportion of intra-regional exports to total exports averaged 9.0 percent. The impact of the debt crisis of the 1980s was felt heavily in the region. The period 2002 to 2008 also saw a phenomenal increase in intra-regional trade with an average annual rate of growth of 24.8 percent. Fundamentally, the region sought to deepen its integration process through the agreement to establish the CARICOM Single Market and Economy (CSME) as a mechanism for the small countries of the Community to stimulate growth and development amid external and internal challenges. With the establishment of the CARICOM Single Market (CSM) in 2006, CARICOM s total exports expanded from US$ 17.8 billion in 2006 to US$ 18.8 billion in 2011 at an average growth rate of 1.0 percent. That growth rate, however, declined in the wake of the most recent global economic and financial crisis. Total imports also increased with the launch of the CSM, from US$ 18.0 billion in 2006 to US$ 24.3 billion in 2011 at an average annual growth rate of 6.2 percent. The period 1973 to 2005 saw an annual average growth rate in imports of 7.9 percent. Similarly, the effect of the global financial and economic crisis was reflected in an average annual growth rate for imports from 2008 to 2009 of negative 25.9 percent. European Union Plenipotentiary Representative to CARICOM, Robert Kopecky, representatives of the Inter-American Development Bank (IDB), the United Nations Children s Fund (UNICEF), the CARICOM Secretariat, and the Statistics Bureau of Guyana, as well as members of the media, participated in the interactive event that was led by Philomen Harrison, Project Director, Regional Statistics, Nigel Lewis and Deoram Persaud of the Regional Statistics Programme. In the interactive segment, Kopecky, congratulated CARICOM on its 40th anniversary and the strides the Community had made, and pointed to the future of regional trade within the context of emerging global powers and different trading partners. Dominican Republic negotiates entry into CARICOM Published by EFE news agency, via Google Noticias Port of Spain, 6 July.- The President of Dominican Republic, Danilo Medina, has officially requested to the 15 members of the Caribbean Community (CARICOM) to support his country s entry into the regional group, made up mostly by English-speaking island developing economies. This was confirmed in a statement by the Office of the Prime Minister of Trinidad and Tobago, Mrs. Kamla Persad Bissessar, who took over the six-month rotating Chair of CARICOM recently and explained that the request was made after her arrival in Port of Spain. The Thirty-Fourth Summit of CARICOM coincided this year with the 40th Anniversary of this regional organization, beleaguered by internal and external criticism that it is unable to make progress with integration of its Member States and has little weight in the international community. According to the Office of Mrs. Persad Bissessar, Medina told regional leaders that his country a Spanish-speaking country and member of the wider Caribbean Forum (CARIFORUM) has been interested in joining CARICOM since 1989. We have come with open arms, promising to work hard to make the region a better place, said Medina, who recalled that, 40 years ago, four visionary leaders of Trinidad and Tobago, Barbados, Jamaica and Guyana signed the Treaty of 9/

Chaguaramas to establish the regional integration movement. He said that on 4 July 1973 the founders built the bases (of CARICOM) on solid principles which have been endorsed by fifteen members and five associate members. We must have the political will and, therefore, we have decided to hold an open dialogue in order to achieve adhesion to CARICOM, Medina told the Presidents of the Member States of the organization. Guyana and Suriname join MERCOSUR Published by Prensa Latina news agency, via Google Noticias Montevideo, 10 July.- Guyana and Suriname, members of the Caribbean Community (CARICOM), signed a framework agreement to adhere MERCOSUR as Associate States. Valeria Csukasi, Director General for Integration Issues and MERCOSUR, of the Uruguayan Ministry of Foreign Affairs, said that an agenda in the areas of cooperation and marketing will be established with Guyana and Suriname. She said that progress will also be made towards the future inclusion of Bolivia as a full member. Csukasi recalled that Bolivia signed a protocol of accession as a full member in December 2012. The protocol is still under study by the parliaments of the bloc, which have worked at the technical level on how Bolivia will be included and how it will adopt the commitments entailed by such status. Participants in the MERCOSUR Summit also confirmed the growth of this integration bloc, currently made up by Argentina, Brazil, Uruguay, Venezuela and Paraguay, which will soon re-join the scheme. Csukasi noted that this is an important step to get all the countries of the South American continent linked with MERCOSUR, either as Member States or Associate States. She also referred to the upcoming assumption of the Pro Tempore Presidency of MERCOSUR by Venezuela, which will be handed over by Uruguay. She said that an issue that should be dealt with is the Single Budget of the bloc, because some projects are being interrupted due to lack of funding. This proposal is aimed at straightening the finances of the organization in order to ensure a single payment at the beginning of each year, which would be distributed among the various organs. After mentioning that now there are other issues regarding productive integration and cooperation, in addition to the permanent topics in the agenda of MERCOSUR, Csukasi said that the biggest challenge for Venezuela will be to assume the Presidency of the bloc for the first time. The idea is that all partners can give support to Venezuela during the semester so as to keep working with the topics on the agenda, she added. Central America coordinates priorities Published by EFE news agency, via Google Noticias Panama, 22 July.- The newly created Commission of Secretariats of the Central American Integration System (SICA) made strides with the coordination of the priorities on its agenda during its first meeting with the Pro Tempore Presidency of the regional organization, currently held by Panama. The first meeting of this new organ of SICA was chaired by the Secretary-General of the regional body, former Foreign Minister Hugo Martínez, and the Minister of Foreign Affairs of Panama, Fernando Núñez Fábrega. Participants included representatives of the Secretariats of Central American integration and authorities of Panamanian ministries and entities related to this process. During the one-day meeting, participants discussed issues such as institutional strengthening, social integration, regional security, economic integration, climate change and disaster prevention, in order to coordinate the work priorities of regional integration for the second half of 2013. At the meeting, Núñez Fábrega underscored the importance of permanent revision and update of the schemes and structures agreed upon to build regional integration. Núñez said that in holding the Pro Tempore Presidency, Panama faces the challenge of promoting a series of commitments in the area of regional security, institutional strengthening, economic and social integration, risk management and climate change. 10/

The Secretariat of Democratic Security, the social agenda and also the entry into force of the Central American-European Union Partnership Agreement scheduled for 1 August are issues of significant importance for Panama in exercising the Presidency of SICA, he said. Núñez called for the urgent formalization, in the shortest possible time, of the Secretariat for Social Integration (SISCA) in Panama, so as to work in bridging the economic and social gaps of the peoples of the region and strengthen the process of economic and political integration. We need to give SICA the chance to prove its strength. The 21st century is the century of integration, he said. In turn, SICA Secretary-General stressed that the broad participation of the Pro Tempore Presidency at the meeting shows the deep commitment of the Government of Panama to integration and allows for identifying a common agenda for the benefit of integration of the countries of the region. Martínez said that this meeting of the Commission of Secretariats with the high-level authorities of the Presidency provides a highly valuable space for coordination of the work to be carried out by the organs of SICA and the materialization of the priorities and objectives of integration. The Central American Summit held on 27 July in San José, Costa Rica, institutionalized the meeting of the Commission of Secretariats of SICA, led by the Secretary-General. The objective is to coordinate together the priorities of work for this semester and establish roadmaps that allow for executing and monitoring the priorities of each institution and its stakeholders. The Commission is a permanent mechanism of coordination, made up by the Secretary-General of SICA, other Secretariats and specialized agencies of the system, according to the official information. Briefs Peru takes over Pro Tempore Presidency of Andean Community Lima, 9 July (ComunidadAndina.org).- As part of the preparation process to take over the Pro Tempore Presidency of the Andean Community, Peru held a seminar on capacity-building in the Andean integration aimed at officials of the Peruvian Ministry of Foreign Affairs and several public institutions in Peru. The seminar was organized by the Ministry of Foreign Affairs of Peru, in coordination with the General Secretariat of the Andean Community, with the participation of officials responsible for the areas of work of CAN as speakers. ALBA to receive support from ALADI Montevideo, 11 July (ElUniversal.com).- Bolivia, Cuba, Nicaragua and Venezuela will receive support from the Latin American Integration Association (ALADI) for training, business and market access, following an agreement signed in Montevideo. It is an Economic Complementation Agreement (ACE), which institutionalizes and ratifies vis-à-vis ALADI the will of the Member States of the Bolivarian Alliance for the Peoples of Our America (ALBA) to create a common space, said the Venezuelan Minister of Foreign Affairs, Elías Jaua. The Foreign Minister of Bolivia, David Choquehuanca, said that the document is aimed at ordering and imprint dynamism to complementary and non-competitive trade, while strengthening the respective productive apparatus of each country. The Minister of Development, Industry and Trade of Nicaragua, Orlando Solórzano, said that it is a partial scope agreement for economic, commercial and productive complementation, different from an FTA (free trade agreement). It covers all trade exchanges, by stages, plus the productive chains. Thus Latin America takes up again the principles of development, he added. The four countries of ALBA also committed themselves to chaining their productive systems on the basis of production and trade policies in order to strengthen and transform them, along with their business systems, to achieve greater participation in world trade. Meetings on integration in August I Round of the Customs Union Panama City, Panama (19-23) SIECA 11/