Business council calls for Latin American unity to deal with world economic crisis

Business council calls for Latin American unity to deal with world economic crisis

10/10/2011 09:30

Brasília – According to Ingo Plöger, president of the Brazilian group, Latin American Business Council (“Conselho de Empresários da América Latina – Ceal”), Brazil and other Latin American countries can protect themselves from the impact of the economic crisis. Plöger told Agência Brasil that his organization would like to see action taken before the next G-20 meeting. He suggested that regional Finance ministers could meet to set up partnerships on exchange rates and free trade, for example.

“We have a good evaluation and our prospects [here in Latin America] are positive, although the crisis has been negative in Europe, the United States and Japan,” declared Plöger, adding that expected GDP growth this year would be between 3% and 4% in the Latin American region.

“In reality, this is not a crisis of the real economy. Governments are in crisis and banks are collapsing [because of high levels of debt]. In Latin America, we have low levels of debt and strong banks,” he explained.

Plöger’s Ceal favors more regional partnerships, including local taxation rules, and greater integration. Plöger points out that the region has more bold agreements abroad with the United States and Europe, and even Asian countries, than internally among its own members. And he seconds the idea of president Dilma Rousseff to go to the G-20 (the next meeting is in France in November) with a single proposal for the region. Plöger says she should do so with the backing of the business community.

Plöger also told Agência Brasil that he believes it is essential to link the exchange rate to a basket of currencies, such as the euro, dollar and the Chinese yuan. He added that it was important to demand an end to farm subsidies in the United States. He concluded by saying that this was a good moment to do these things. “There are international adjustments that should be implemented immediately. The Union of South American Nations (“Unasul”) can lead the way,” he said.

Allen Bennett – translator/editor The News in English

http://agenciabrasil.ebc.com.br/new...tin-american-unity-deal-world-economic-crisis

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