Bush Excluded by Latin Summit Favoring
China, Russia, Iran Ties (extracts)
Joshua Goodman, Bloomberg, Dec 15 2008
Latin American and Caribbean leaders gathering in Brazil tomorrow will mark a historic occasion: a region-wide summit that excludes the US. From Venezuela to Brazil, governments are expanding military, economic and diplomatic ties with China, Russia and Iran. Since November, Russian warships have engaged in joint naval exercises with Venezuela, Hu Jintao has signed a free-trade agreement with Peru, and Brazil has invited Ahmadinejad for a state visit. Bolivia’s Evo Morales last month expelled the US Drug Enforcement Administration, alleging that DEA agents were conspiring to overthrow him; Bush dismissed the charges as absurd and suspended Bolivia’s trade privileges. Ecuador’s Rafael Correa has refused to renew the lease on the US’s only military outpost in South America.
The summit reinforces such regional initiatives as the Union of South American Nations, which was formed in May by 12 countries to mediate conflicts such as political violence in Bolivia, bypassing the US-dominated OAS. The US “didn’t ask to be invited,” says Thomas Shannon, top US diplomat for Latin America, although it had discussed with Brazil and Mexico ways the meeting’s agenda could be used during the US-backed Summit of the Americas in April. “We don’t subscribe to the hydraulic theory of diplomacy, that when one country is up, the other is down, that if China and Russia are in the area our influence has somehow waned,” Shannon said in a telephone interview. The fact that “there’s no warfare, weapons proliferation, suicide bombers or jihadists” in Latin America may make its issues “less urgent” though no less important, Shannon said.
China’s trade with the region shot up 12-fold since 1995, to $110b last year, according to the Inter-American Development Bank. China’s share of the region’s imports also jumped to 24% from 9.8% in 1990, while the US share shrunk to 34% from 43%. Two years after reaching a bilateral free-trade agreement, China’s demand for copper made it Chile’s biggest export market in 2007, replacing the US. Since 2004, Hu Jintao has spent more time in the region than Bush. In October, China joined the Inter-American Development Bank, with a $350m loan. This month it pledged $10b in loans, to Petroleo Brasileiro SA. Colombia, which is spending $115k a month lobbying the US Congress to approve a stalled free-trade pact, signed an investment treaty last month with China. Obama said he opposed the accord, over concerns that Colombia isn’t doing enough to stamp out violence against labor organizers.
Chavez turned to Russia for at least $4.4b in weapons after the US blocked sales of aircraft parts. Brazil’s Defense Minister Jobim said in Washington this month that his government will only buy weapons from countries that agree to transfer technology for local production. Plans to purchase 36 new fighter jets, in which Boeing’s F-18 is competing for a contract against Saab AB and Dassault Systemes SA, “can only be justified politically if they contribute to national development,” Jobim said. Brazil may sign a deal with France for four nuclear submarines intended to help secure its oil basins in the Atlantic when Sarkozy visits Lula this month. The US plan to reassert its naval presence by reactivating the Fourth Fleet to patrol the Caribbean has triggered negative reactions, ranging from Chavez’s threat to sink the convoys to Lula’s demand for explanations.