International

Latin American leaders hold summit with Brazil back in the fold

Photo: Luis Robayo / AFP

January 24 | By AFP | Philippe Bernes-Lasserre / Mauricio Rabuffetti |

Fifteen Latin American heads of state and government meet Tuesday in Buenos Aires for a regional summit welcoming back Brazil as President Luiz Inacio Lula da Silva looks to rebuild bridges after his far-right predecessor Jair Bolsonaro pulled out of the grouping.

The 77-year-old Lula, in Argentina for the first international trip of his third term, will participate in the seventh Community of Latin American and Caribbean States (CELAC) summit, bringing together 33 states from the region.

Lula was one of the founders of CELAC, during the first “pink wave” on the continent in the first decade of the century.

And now he brings Brazil back into the fold after Bolsonaro had suspended the country’s participation in the grouping.

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Host Argentina this week hailed a “new climate in Latin America”, with the region ushering in a new wave of left or center-left governments since 2018, including Mexico, Argentina, Honduras, Chile, Colombia and Brazil.

A forum for consultation and cooperation, CELAC is not a regional integration mechanism with binding opinions.

And for all the importance underlined on Monday by Argentine President Alberto Fernandez and Lula of “the need to integrate Latin America,” CELAC is struggling to unite members over successive regional crises, like Peru.

“Latin America is bankrupt from the institutional point of view (…) it has not succeeded in integrating collectively into the world,” Ignacio Bartesaghi, an expert in international relations at the Catholic University of Uruguay, told AFP.

At the very least, CELAC “remains a vast and diverse space of Latin American countries from which minimal agendas or common interests for the region can be established”, agreed Bernabe Malacalza, researcher in international relations at the Argentine national research center CONICET.

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“There is not even certain basic consensus in Latin America, as on the difference between a democracy and a dictatorship,” Bartesaghi stressed.

“There are (at CELAC) presidents who do not even recognize each other,” he noted.

Like Paraguay’s Mario Abdo Benitez, whose country broke diplomatic relations with Nicolas Maduro’s Venezuela in 2019.

Lula meanwhile has pledged to reopen the embassies.

‘Rebuild Mercosur!’

Maduro at last minute called off his trip, citing “a risk of aggression” from “the neo-fascist right,” a possible reference to some Argentine opposition politicians calling for him to be arrested on arrival.

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Other significant absentees in Buenos Aires include Mexico’s leftwing President Andres Manuel Lopez Obrador, leader of the second largest economy in Latin America and host in 2021 of the last CELAC summit.

CELAC however remains the interlocutor of choice for China, or the EU to negotiate cooperation agendas with the region.

But even here, “The impossibility of holding an EU-CELAC summit since the last one in 2015 (in Brussels) illustrates (…), the absence of a solid biregional political dialogue,” Malacalza said.

In this sense, the return of Lula could give a boost to certain sub-regional issues, such as the free-trade agreement between the EU and the Mercosur group which comprises Brazil, Argentina, Uruguay and Paraguay.

The deal was finalized in 2019 but never ratified, due in particular to concerns about Bolsonaro’s environmental policy.

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Lula has indicated a willingness to resume contacts.

“We are going to rebuild Mercosur!” Lula said Monday evening, referring to the customs union which has been torn in recent months over a free trade treaty with China.

“We will recreate Unasur!” he continued, referring to the moribund Union of South American Nations created in 2008 on the initiative of himself and Venezuela’s Hugo Chavez.

Latin America is only the initial phase of the Brazilian president’s international push, with Lula heading to Washington in February and to China “after March.”

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International

US panel backs Trump-themed coin amid controversy

The United States Department of the Treasury confirmed to AFP that the Commission of Fine Arts approved the design of a new collectible coin featuring Donald Trump, with members of the commission appointed by the current administration.

According to the proposal, the coin will feature an image of Trump standing with clenched fists over a desk on the obverse, while the reverse will display an eagle, a traditional symbol of the United States.

The sale price of the collectible has not yet been disclosed, although the United States Mint typically offers similar items for more than $1,000.

“There is no more iconic portrait for the front of these coins than that of our president Donald Trump,” U.S. Treasurer Brandon Beach said in a statement sent to AFP. He added that two additional coins — a $1 piece and a one-ounce gold coin — are also under consideration.

However, the Citizens Coinage Advisory Committee (CCAC), another body responsible for reviewing new coin proposals, declined to discuss the Trump design in late February.

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“Only nations governed by kings or dictators place the image of a sitting leader on their currency,” said Donald Scarinciat the time. “No country in the world has minted coins featuring a democratically elected leader during their term in office,” he added.

When contacted by AFP, the Treasury Department did not immediately respond to requests for further comment.

International

Fed’s Waller warns of rising inflation risks amid Middle East conflict

Christopher Waller, a governor at the Federal Reserve, said Friday that he is increasingly concerned about the inflationary impact of the ongoing conflict involving United States and Israel against Iran, particularly due to the prolonged closure of the Strait of Hormuz.

Waller, who had supported interest rate cuts over the past year amid concerns about the labor market, said he has shifted his stance in recent weeks due to rising inflation risks.

“Since the Strait of Hormuz was closed, it suggests this conflict could be much more prolonged and that oil prices will remain elevated for longer,” Waller said in an interview with CNBC.

“Therefore, this indicates that inflation is a greater concern than I had previously assessed,” he added.

Waller also backed the Federal Reserve’s decision earlier this week to keep interest rates unchanged, signaling a more cautious approach as global geopolitical tensions continue to affect economic outlooks.

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International

Brazil offers to mediate Colombia-Ecuador tensions, calls for restraint

The government of Brazil has offered to mediate in the ongoing tensions between Colombia and Ecuador, while calling on both nations to exercise restraint.

In a statement released Wednesday, Brazil’s Ministry of Foreign Affairs urged the parties involved to act with moderation and seek a peaceful resolution to the dispute.

“Brazil encourages all sides to act with moderation in order to find a peaceful solution to the controversy. It stands ready to support dialogue efforts aimed at preserving peace and security in the region,” the statement said.

Brazil also expressed “serious concern” over reports of deaths in the border area between Colombia and Ecuador, noting that the circumstances surrounding the incidents have not yet been clarified.

The diplomatic move comes amid rising tensions between the neighboring countries, increasing regional concern over stability and security along their shared border.