Trade Relations with Messianic Governments

International bureaucrats are touring Central America offering up the ALADI as a means of doing business with South American countries, while the president of Argentina is preventing firms in her country from using ports in Uruguay.

Wednesday, April 16, 2014


Our comments are the same as they were one year ago when Uruguayan diplomats toured the area in order to promote a free trade agreement with Mercosur; in terms of trade integration, South America is a bag of cats where what prevails is the will of two giants, Brazil and Argentina, with the aggravating circumstance that the current government of President Fernández de Kirchner, in the exact same manner as his deceased predecessor Néstor Kirchner, manages and controls Argentinian international trade by pandering to the needs of immediate populist policies, regardless of the agreements they have signed.

The best demonstration of the constraints imposed by the large South American nations, is the very low development of intra regional trade which barely reaches 20% of the total trade of the countries in South America.

The LAIA, Latin American Integration Association, is now trying, in the words of the Argentine Secretary, General Carlos Alvarez, to become a "market pillar" of the Community of Latin American and the Caribbean States (CELAC), an institution founded with the clear objective of creating an international environment to serve the "Bolivarian" political philosophy of the late Hugo Chavez, marginalizing the United States.

As part of this attempt to rejuvenate the LAIA and give some practical meaning to their flagging existence the LAIA EXPO trade fair has been scheduled to be held in Uruguay in October 2014. The event is being promoted as the "... first Latin American meeting aimed at increasing and strengthening trade between our countries, to enhance opportunities for businesses so they may grow and increase their participation in the regional market, particularly MSMEs, favoring dissemination of exports and making the best use of business opportunities arising from the agreements in the field of Latin American Integration Association (LAIA), generating more trade, more knowledge and more regional integration."

According to the prospectus available on the Internet, the event offers stands for national trade promotion offices, and a few spaces for displays by private companies. It is worth noting that a 12m ² stand costs $100,000, and one measuring 6m ² costs $70,000.

To get a first impression of the business and commercial "dynamism" to be seen in EXPO LAIA 2014 we recommend watching the video of the official launch of the event, available on the event website. Its a must see.

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