Vietnam-Uruguay: Prime example of why MERCOSUR has failed

Below you will find an excerpt and link to read the full article on how Vietnam and Uruguay are working together right now to increase cooperation  in investment, agriculture, and farm produce processing, adding that Uruguay can supply such products as beef, fruits and wine to Vietnam. While Vietnam, likewise has much to offer in exchange.

Why do I say that MERCOSUR has failed as a trading bloc? For starters Uruguay can not within the legal framework of the Economic Union negotiate FTA’s with countries unless all members of MERCOSUR are involved in the negotiations and on board.  It seems the intelligent leaders of Uruguay know which way the wind blows and how MERCOSUR is now becoming a major hindrance to their own destiny as a country. To put it simply:

• While Argentina and Brazil bicker over taxes and trade…
• While all members try to figure out what to do with Paraguay and the dirty game which was played to admit Venezuela into the union
• While Argentina continues to raise a stir over the FALKLANDS, which they believe is occupied by “Latino’s.” FAR from the reality, see this article written by a Panamanian journalist who recently visited the Islands… The place is more British than most parts of the ethnically diverse city of London.
• Last, while trade among the Economic Bloc is declining…

Uruguay has realized in this new, ever more inter-connected global economy they are a special country which can offer special incentives and advantages compared to their giant neighbors to the North and South (Brazil and Argentina).

It’s time MERCOSUR takes a deep, introspective look at itself because day by day, the MERCOSUR Union seems to be cracking apart piece by piece.  In the opinion of your author, Uruguay should realize its special niche in the world and that it no longer needs to depend too heavily on Brazil or Argentina for its economic well-being. No matter what happens with MERCOSUR, people from Argentina and Brazil will flock to Punta del Este for vacation, continue trading with the country, and maybe even continue the trend of using Uruguay as a conduit and medium in which to conduct business with the world and among each other because Uruguay is a dream come true when it comes to doing business… At least compared with Argentina and Brazil which notorious for bureaucracy, regulations and high taxes.

Vietnam looks to boost economic ties with Uruguay

[Source] : Vietnam Net Bridge English

VietNamNet Bridge – Uruguay should create favourable conditions for Vietnamese enterprises to invest and do business in the country as well as in the Latin American market, President Truong Tan Sang has said.

Sang made the suggestion at a reception in Hanoi on November 6 for visiting Vice President of the Eastern Republic of Uruguay, Danilo Astori, who is also President of the General Assembly and the Chamber of Senators.

The President went on to say that Vietnam is willing to serve as a bridge for Uruguay goods into the ASEAN market.

Apart from further promoting political ties, the two countries should soon implement the agreement signed, paving the way for trade and economic cooperation, especially in agriculture, oil, gas and telecommunications, said Sang.

Agreeing with the President’s proposal on the establishment of an inter-governmental committee at an early date, Astori shared his view that in the short-term, the two countries should implement the Framework Agreement signed in 2007 and forge new deals to boost bilateral economic and trade ties.

Click here to read the complete article

Spanish language report – Reality of Venezuela China Connection

IMAGE COURTESY OF VENEZUELANALYSIS.COM

Elecciones en Venezuela: la realidad detrás de la conexión china

[Source] : China Files

By Paula Ramón

En 38 años de relaciones diplomáticas entre China y Venezuela, Caracas ha dispensado siete visitas presidenciales a Beijing. Seis de ellas han tenido lugar a partir desde la elección en 1999 de Hugo Chávez. En ese tiempo, la balanza comercial creció de US $1.900 millones hasta los US $10.272 millones en 2010, año en el cual el país caribeño se convirtió en el acreedor del préstamo más alto emitido por entidades bancarias chinas. Sin embargo, más allá de las cifras económicas, la realidad es que China se ha consolidado como un fundamental cliente del petróleo venezolano, pero no se ha convertido en el socio político que Chávez esperaba.

A pesar de los datos comerciales, invertir en Venezuela es “una mala elección” para los empresarios del gigante asiático, según el economista Wang Peng, investigador de la Academia de Ciencias Sociales de China. El especialista en Venezuela del más importante think-tank chino afirma que la nación caribeña sigue siendo un país “extraño” para la mayoría de los chinos, a pesar de los esfuerzos del gobierno venezolano.

De Caracas a Beijing

Antes de cumplir su primer año en la presidencia, Chávez partió en una gira asiática que, entre otros lugares, le permitió pasar tres días en Beijing. Ya en aquella visita señalaba que “China es garante de que el mundo no sucumbirá a un sistema unipolar dominado por una única superpotencia”, en referencia a Estados Unidos –principal socio comercial de Venezuela. Chávez iniciaba un acercamiento con China para sustentar su política anti-americana, movido por lo que él consideraba “una responsabilidad histórica” centrada en supuestas similitudes entre el pensamiento de Mao Zedong y Simón Bolívar.

Haga clic aquí para leer el artículo completo

Venezuela y China – El Universal

[Source] : El Universal

ALFREDO TORO HARDY | EL UNIVERSAL
jueves 20 de septiembre de 2012 12:00 AM

Image courtesy of VenezuelAnalysis.com

Muchos países latinoamericanos se quejan de una relación desigual con China. No es el caso venezolano

En 2011 el comercio entre Venezuela y China alcanzó 18 millardos de dólares, lo que multiplicó por 24 los 742 millones de dólares que registró el intercambio comercial en 2003. Al culminar este año se estima que el intercambio llegará a 23 millardos, lo que representaría 31 veces más que nueve años antes. En 2011 la balanza comercial favoreció a Venezuela y otro tanto se espera que ocurra en 2012 (“Venezuela-China”, Special Supplement, ChinaDaily, June 28, 2012).

Pero más allá del comercio están los proyectos previstos o en desarrollo bajo la cobertura del Fondo de Inversiones conjunto que comenzó a operar en 2007 y al cual, hasta noviembre de 2011, China había comprometido 32 millardos de dólares. Para finales de 2011 Venezuela contaba con una cartera de más de 25 mil millones en proyectos de desarrollo financiados por el China Development Bank. Algunas de las iniciativas bajo ese marco se localizan en territorio venezolano y otras en China.

Haga clic aquí para leer el artículo completo

Latin America’s China Addiction (Part 2): Are Commodity Prices Showing Signs Of Recovery?

[Source] : Seeking Alpha

Click here to read part 1 of this story 

China’s economic soft-landing has had a significant impact on economic growth across the globe and particularly in Latin America where mining and commodities production are key drivers of economic activity. In the first article of this series the linkage between Latin American economic growth, commodities exports and Chinese economic growth was illustrated. This showed that China’s slowing economy and decreased demand for commodities has been a key catalyst for the fall in economic growth across the region. It has also been a key catalyst for the plunging share prices being experienced by many resource companies, which include some of Latin America’s largest publicly tradable companies like Vale (VALE) and Petrobras (PBR).

Market outlook on commodities growing more optimistic

However, markets have been taking a more optimistic view of China and commodities over the last month. This growing optimism is based on signs that the contraction in Chinese economic activity is easing along with increasing speculation that the Chinese government will take action to boost growth. This has led to considerable speculation that there will be a recovery in commodities prices, which should see a renewal of economic growth in Latin America.

One of the key drivers of this growing optimism has been the slowing contraction of the Chinese manufacturing sector, with the Chinese purchasing managers’ index (PMI), rising in July to a five month high. There has also been renewed confidence in the iron ore mining sector with Australia’s third largest iron ore producer Fortescue Metal’s Group (FSUMF.PK) recently reporting an 8% increase in profit, along with positive statements from both Rio Tinto (RIO) and Vale concerning the future direction of iron ore prices. However, with the exception of crude oil it appears that this optimism is misplaced with commodity and basic materials prices continuing to fall.

Click here to read the complete article

Jim Rogers (commodity guru) talks, people (should) listen

China Easing Moves ‘A Mistake’: Jim Rogers 

[Source] : CNBC

Image courtesy of Wikicommons

“I think they’re a mistake and there’s still inflation in China,” said Rogers on CNBC Asia’s “Squawk Box” on Wednesday, referring to cuts in China’s reserve requirement ratios (RRR) and interest rates earlier this year.

“Yes, the property bubble has popped and prices have started coming down but not enough in my view. The most recent statistics show that Chinese property market is starting to recover,” he said.

Click here to read the complete article

Jim Rogers Says Silver Is A Better Investment Than Gold

[Source] : Seeking Alpha

By Jared Cummans

Jim Rogers is easily one of the most famous investors of all time. His astounding track record has led him to become one of the most successful traders ever, earning deep respect throughout the financial world. Better yet, Rogers is not the least bit shy about speaking his mind, whether he is right or wrong. Some of his previous statements included the fact that anyone who doesn’t invest in commodities is a fool, that gold will surely drop 20% from its current levels, and now, Rogers has stated that silver is a better investment than gold.

Gold investing has long dominated the precious metals space, as investors have used this ultra-popular metal as both a trading/speculative instrument as well as an integral part of a longer term strategy. While silver still has a large presence in the financial world, it is not often that a big name steps into the limelight and touts this white metal over its gold counterpart.

Click here to read the complete article

FT reports Argentina swoop scuppers China oil deal

To respect the high quality journalism produced by the Financial Times I will honor their request not to copy and paste their content.

However click here to read about the soap opera that has become Sinopec of China’s attempt to buy 57% of Repsol of Spain, stake in Argentina’s oil company YPF (Yacimientos Petrolíferos Fiscales) before it was nationalized by Buenos Aires.

Rare question and answer Xinhua Exclusive on China- Latam relations

Thank you Xinhua News. Please click here to access the article from Xinhua News.

Yang Wanming, director-general of the the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, exchanged views with chinanews.com readers online on Tuesday afternoon.

 

Yang Wanming, director-generalof the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, answers questions from chinanews.com readers online on Jan 17, 2012. [Photo/Chinanews.com]

 

Topic: China-Latin America cooperation in culture

Q: How do China and Latin America cooperate in the field of culture?

A: China has opened 32 Confucius institutes in Latin America, covering almost all Latin American countries. Both sides also send art troupes to visit one another and conduct people-to-people exchanges. Many Chinese people like their football, music and dances and engage in studying Spanish and Portuguese. Many Chinese books have also been translated into Spanish and sold in Latin America.

Topic: Cooperation in energy

Q: What’s the current situation with Sino-Latin American energy cooperation? Some people think China is plundering energy resources there and uses it as a way to curb the US.

A: China is trying to carry out comprehensive cooperation with Latin American countries and its efforts have been well welcomed by them. The cooperation not only benefits the two parties, but also contributes to global peace, stability and prosperity. It started late and is on a relatively small scale, but has been developing fast. China imported 20.73 million tons of crude oil from Latin American countries in 2010, which accounts for 8.7 percent of China’s total import in that year. Venezuela has become China’s 4th largest oil provider. The two parties will explore cooperation on new energy. It’s totally based on equality and mutual benefit and will do no harm to the third party.

Topic: US view on China-Latin America relationship

Q: The relationship between China and Latin American countries has developed so fast. What do you think of the feeling in the US to this?

A: In recent years, the independence of Latin American countries is growing and its economic growth momentum becomes more diverse than before.

The rapid development of China-Latin America relations is on the basis of mutual benefit and win-win for both sides and is within the needs of Latin American countries’ diversified diplomacy and development strategy.

It will not only benefit development of both, but also contribute to the world’s stability and development.

China and the US have already established a consultation mechanism on Latin-America, and through four different consultations, the two parties have enhanced their mutual trust on this issue.

And the US has repeatedly stressed in their consultations that strengthening relations between China and Latin American countries will be good for Latin-America’s stability and development.

Topic: Chinese workers kidnapped in Colombia

Q: It was reported that several Chinese employees were kidnapped in Colombia by unidentified armed militants. How are they now? Could you release some information about the rescue efforts?

A: Four Chinese workers were kidnapped by some unknown armed militants in Caquetá province in Colombia on June 8, 2011. We have urged the Colombia authority to spare no effort to carry on the rescue work under the premise of guaranteeing the safety of hostages. Since then, the Chinese embassy in Colombia has kept in close cooperation and contact with Colombia’s relevant departments. The rescue work has not finished yet, but the safety of the four hostages can be guaranteed. Chinese companies are facing more risks as they go global on a larger scale. We need to increase our political backup and diplomatic guarantee to them, strengthen the consular protection and safeguard their legitimate interests. Meanwhile we advise Chinese people in Latin America to improve their sense of safety and precaution.

Q: How about China-Mexico relations?

A: China and Mexico are both developing countries and are working at enhancing people’s living standards. They hold the same positions on many international issues and regularly cooperate on these..

China and Mexico have some trade friction over trade imbalance problems, but we hope both sides can deal with the problems reasonably and from a development point of view.

We hope both can take active measures to promote the diverse, comprehensive and healthy development of the two countries’ economic and trade relations.

February 14 marks the 40th anniversary of diplomatic relations between China and Mexico. We believe the relations can become more comprehensive, steadier and healthier with the two countries’ joint efforts in the future.

Q: Can you talk about the relationship between China and Brazil?

A: Brazil is one of the biggest countries in Latin America and one of the emerging powers in the region. The China-Brazil relationship is one of the most important between China and Latin America.

In recent years, the strategic partnership between China and Brazil has made considerable progress. They maintain a good momentum of high-level exchanges and the political mutual trust is deepened.

Their economical cooperation is also deepening constantly, which has brought tangible benefits to people of both countries. Bilateral trade volume exceeded $80 billion in 2011. Investment cooperation in finance, energy, steel, and machine manufacturing has also made great progress, and is expanding constantly.

China and Brazil have active exchanges in science, technology and culture as well.

The cooperation in the fields of Earth resource satellites, agricultural technology and aviation is progressing continuously. And the cooperation in culture and education is also very close.

China’s Confucius Institute Headquarters opened two Confucius Institutes and a Confucius school in Brazil and Brazil’s important media institutions have sent many journalists to work in China.

China and Brazil are both developing countries and have broad and consistent interests on major international issues. The Chinese government attaches great importance to relations with Brazil and believes the two countries’ cooperation in various fields will make great progress with their joint efforts.

 

Global gloom places Latin America on alert – Financial Times

Interesting article written by John Paul Rathbone, Latin America editor of the Financial Times.

Every day Luis Castilla, Peru’s finance minister, says he lights a candle and “prays that China won’t crash”.

His prayers are echoed by many in a region that remains one of the world economy’s few bright spots. South America’s commodity-rich economies grew 5 per cent in the first half of this year. Last year, these new motors of the world economy added half a percentage point to global output.

But slowing Asian demand and plunging commodity prices have raised the spectre that South America, having largely escaped the 2008-09 Great Recession, may not be so lucky this time around.

Main point = Potential new financial crisis in the “Developed World” + slow down in China = Scared Latinos

Click here to read the full article direct from the Financial Times

Brazil’s highway to China

Highway to China

Indeed, the real purpose of our helicopter trip was to view Mr Batista’s latest project, a vast superport north of Rio, built with this customer in mind.

The centrepiece of the complex is a two-mile-long pier jutting straight out into the South Atlantic, which has been dubbed “the highway to China”.

[...] Click here to read the full article direct from BBC

China’s Sinopec buys Occidental’s Argentina assets for $2.5 bln

Reuters reports –

* To be Sinopec’s first upstream exposure in Argentina

* Deal represents fair price – analyst

* Occidental concessions in Argentina due to expire in 2017

* China average oil demand grew about 13 pct y/y in Oct

(Adds analyst quotes, deal history)

By Jim Bai and Farah Master

BEIJING/HONG KONG Dec 10 (Reuters) – China Petrochemical Corp, parent of Sinopec Corp , agreed to buy all of U.S.-based Occidental Petroleum Corp’s oil and gas assets in Argentina for $2.45 billion, marking the energy giant’s first foray into the upstream market in the Latin America country.

Sinopec’s move adds to a growing list of outbound deals in the natural resources sector by state-backed Chinese firms in the past two years as the world’s most populous nation scrambles to secure resources for its surging economy.

Click here to read the full article, direct from Reuters