February 2012 NOREF Report

CELAC: a voice for and the ? The complex challenge of giving the region a stronger voice despite its many different cooperation and integration projects Carlos Portales

Executive summary

This paper analyses the creation of the Community cooperation – mainly inter-governmental bodies of Latin American and Caribbean States (CELAC) – in order to address what they see as the threat in on 3 December 2011, locating it within of globalisation (ALBA). Although the idea of the current context of cooperation and integration coordinating sub-regional policies and processes in Latin America and the Caribbean. This new is one of CELAC’s aims, the tools it has for doing body is based on an agreement that includes so are poor. political cooperation functions and the task of seeking inter-governmental coordination of public CELAC also superimposes itself over important policies. sub-regional treaty-based coordinating bodies, such as UNASUR, as well as other cooperation CELAC is not a replacement for the cooperation mechanisms that extend beyond the region, such and integration groups that have been set up as the OAS and the Ibero-American summits. around three distinct visions: the desire to actively open up to the world (, the South American The desire for CELAC to be an alternative body countries of the Pacific Basin and, to some extent, – especially to the OAS – does not enjoy regional the Central American countries); the desire for consensus and it would be difficult to achieve a limited opening, subject to negotiations that with the resources the new body currently has seek first of all to bring about a very significant at its disposal. The complex challenge facing it transformation in the international trading system is rather to give the region a stronger and more (); and the search for the special situation representative voice and attempt to bring about of small states to be recognised (CARICOM). some degree of coordination among the different Neither does it replace groups that encourage visions and mechanisms being implemented.

Carlos Portales has been director of the International Organisations, Law and Diplomacy Programme at American University’s Washington College of Law since 2010. He was director general of foreign policy for for over ten years, third in command at the Foreign Ministry and ambassador to the Organisation of American States (OAS) and to the United Nations (UN) in Geneva. In Chile he organised the 1993 Rio Group Summit and the 2007 Ibero-American Summit and has been coordinator for summits of the , Ibero-American summits and Mercosur Politico. He has been vice-president of the UN Human Rights Council, president of the OAS Hemispheric Security Commission and president of the Special Commission of the Summits of the Americas, OAS. He has participated in several Chilean delegations to the UN and OAS General Assemblies. He was ambassador to Mexico.

Portales has taught at the University of Chile, University of North Carolina (Chapel Hill), American University (Washington, DC) and Latin American Faculty of Social Sciences. He is the author of several publications and studied law at the University of Chile and political science at Stanford University. CELAC: a voice for Latin America and the Caribbean?

The launch of the Community of Latin American The Rio Group, a mechanism for consultation and Caribbean States (CELAC) in Caracas on and concerted political action, was set up in 1986, 3 December 2011 established a new regional building on the experience of the Contadora referent that merges the Rio Group with the Latin Group (Mexico, , and American and Caribbean Summit (CALC). Are ), which had developed a Latin American we witnessing the realisation of the proposals response to the policies of President Reagan put forward by the Amphictyonic Congress of in Central America, and the Contadora Support Panama in 1826 for replacing the Organisation Group, made up of the new democracies that of American States (OAS), which some saw as had come into being in the 1980s in , establishing U.S. hegemony over the region? , and . The Rio Group defined Or will CELAC just be a short-lived experiment itself as a political referent, a democratic voice bound up with the fate of President Chávez, as for Latin America in the world that preceded and some commentators in the U.S. press believe? followed the fall of the Berlin Wall, and came to be a regional substantive interlocutor with the How does CELAC fit in with the motley array of rest of the world. At the United Nations (UN), it international institutions currently operating in succeeded in articulating a common voice for the the continent? What is its purpose and to what region until it was curbed by Venezuela following extent will it be able to develop its coordinating the initial years of the Chávez government. capabilities? What innovations does CELAC During the 1990s the Rio Group supported the bring compared to the existing referents? agreement achieved at the OAS in 1991 to establish a democracy clause, which later led to the adoption of the Inter-American Democratic Cooperation or integration? Charter in 2001. However, over the past ten years its work has tended to be rather routine in nature. To answer these questions, we need first of all to clarify the terms “cooperation” and “integration”, The Rio Group’s profile has also dropped in the which have all too often come to be used almost face of new initiatives by Brazil, such as the interchangeably. Cooperation is when states European Union-Latin America and the Caribbean reach an agreement or come together to achieve Summit (EU-LAC) in 1999, which led to dialogue certain (political) ends without the establishment with Europe shifting from the Rio Group to EU- of supranational elements, whereas integration LAC; the new South American regionalism that means taking on at minimum certain obligations developed – mainly at Brazil’s initiative – following that need to be honoured by each of the parties the South American Summit of 2000; and, lastly, independently so that eventually, through the establishment of CALC in 2008 (which allows the gradual concession of competences, to join in the meetings of Latin America and supranational bodies are created. Cooperation the Caribbean), which in 2010 merged with the may have security, political, social or even Rio Group at the Unity Summit in Riviera Maya, economic objectives. While integration may also Mexico. have objectives in these areas, it takes place in a context that cannot be reversed at the will of a single party. The idea that disputes should be compulsorily settled by a third party, that decisions What is CELAC? must be taken by a qualified or simple majority CELAC places emphasis on consultation and and, of course, that there should be supranational cooperation across a number of areas. As far bodies is present in the case of integration, but as economic matters are concerned, it only not in that of cooperation. makes one very general reference to the setting up of a working group to prepare a proposal on a Caribbean and Latin American preferential The origins of CELAC tariff, focusing mainly on facilitating trade and strengthening complementarity and cooperation CELAC emerged from the merger of the Rio between regional and sub-regional integration Group and the Latin American and Caribbean mechanisms. Summit on Integration and Development (CALC). - 2 - CELAC: a voice for Latin America and the Caribbean?

CELAC picks up on and can project the “common CELAC will continue to work for consensus legacy” of these regional political consultation on matters related to social development and initiatives, particularly that of representing Latin the eradication of hunger and poverty; the America and the Caribbean. However, it has to secure environment; energy; the international financial agreement among countries from a much broader crisis and foreign trade; regional and sub-regional political spectrum than the one the Rio Group was integration mechanisms for Latin American dealing with at its outset and of which a common and the Caribbean in commercial-economic, commitment to democracy was a firm component. productive, social and institutional areas; and Now the new referent includes countries that may the coordination of regional initiatives concerning well formally subscribe to democratic principles, infrastructure for the physical integration of but whose practices, especially with regard to the transport, telecommunications and frontiers, separation of powers and public freedoms, place humanitarian aid, and migrants. them far apart on the spectrum. And it also includes one country, Cuba, that has not been participating However, CELAC is only a forum. It has no in other bodies because of differences over its secretarial structure and the country hosting the political system (and its dispute with the U.S.). In next summit is responsible for exercising the addition, there are marked differences among the secretarial function pro tempore. It is not a treaty- various economic programmes, which will be even based body; it is just a political agreement that harder to coordinate. sums up where the yearning for there to be one Latin America (including the Caribbean) currently CELAC will also formally take on the role of stands. interlocutor with Europe at the EU-LAC Summit in the Institutionalised Ministerial Dialogue conducted up till now between the Rio Group Many different cooperation and and the EU, as well as in the dialogues the Rio Group has maintained with countries or groups integration processes of countries on the sidelines of the UN General As far as economic integration is concerned, Assembly. However, no new ideas were adopted CELAC is just one of seven or eight different in Caracas with regard to the region’s foreign processes whose dynamics vary enormously, and relations. Relations with Africa and the Arab the prospects of bringing them together are limited: countries have been advanced by Brazil through the Common Market of the South (Mercosur); the the Union of South American Nations (UNASUR) Bolivarian Alliance for the Americas (ALBA); the platform. As far as Asia is concerned, the Forum situation of the South American Pacific countries for East Asia-Latin America Cooperation, set up (Chile, Colombia and Peru), Mexico, Central in the late 1990s, has had a low profile, although America and the ; and what it is still alive. The significant involvement of remains of the of Nations countries from the Latin American Pacific such as (CAN), not forgetting UNASUR. Mexico, Chile, Peru and, more recently, Colombia in Pacific Basin institutions and the bilateral In the 1990s, after having had an agreement with relations entered into by Argentina, Brazil, Cuba the EU and several other Latin American countries and Venezuela with China and other Asian such as Chile and Colombia, Mexico decided to countries have not been explicitly seen as a task open up its economy and join the North American for CELAC. Free Trade Agreement. Its economy has evolved in such a way that it has become increasingly With regard to making regional political statements, integrated into North American markets. CELAC has set up an urgent consultation mechanism, via the pro tempore presidency, Mercosur (comprising Argentina, Brazil, that can lead to the issuing of statements or and Uruguay) is an economic integration project communiqués as long as no member state dating from 1991 whose idea of creating a common expressly opposes them. However, processes market has not been completed. Mercosur has such as Mercosur Politico and UNASUR also still been key to changing the vexed relationship have similar such mechanisms in operation. between Argentina and Brazil by creating a space - 3 - CELAC: a voice for Latin America and the Caribbean? for peaceful cooperation in various fields that has Chile, New Zealand and Singapore). Australia, had a very positive regional effect, especially the U.S., Malaysia and Vietnam, as well as in terms of peace and security. Institutionally, Peru, have since joined, and Canada, Japan and Mercosur has a small Secretariat, but no effective Mexico may also do so. legal procedures for settling disputes, the main crises having been resolved through decisions The Andean Community of Nations (CAN) – taken by the presidents of Brazil and Argentina. It which has the most developed institutional and also offers inadequate compensatory incentives legal mechanisms (which, however, have not been to the smallest economies. Despite the fact that implemented) – is still in operation, but only as a Brazil’s trade policy is clearly export-oriented, framework for governing trade relations among there has been no significant increase in market its members (which include Peru, Colombia, openness. Together with growth of the domestic and ). CAN, which came into market, albeit limited by crises, it has pursued an being at the end of the 1960s as a project for the international economic relations strategy that has expansion of internal markets based on pursuing sought agreements with emerging powers, but has an industrialisation policy, has adopted a more not secured agreements with the most developed open stance towards world markets, but over the countries, which have failed to put forward bids that past ten years has suffered various collapses due are acceptable to major exporters of agricultural to both changes in the macroeconomic directions products such as the countries of Mercosur. This of several of its members and its own external was one of the main reasons why the ALCA (Free negotiations: Venezuela’s departure in 2006 and Trade Area of the Americas) negotiations in 2006 policy changes in Bolivia and Ecuador that are reached stalemate and came to an end, and also geared more to the domestic market. Negotiations explains why negotiations with the EU have been on an agreement with the EU and later with the held up. U.S. ended up splitting the group between Peru and Colombia, who terminated them, abandoning In addition, economic aspects of the agreement the others along the way. for Venezuela to join Mercosur have yet to be negotiated in their entirety and the question ALBA, which emerged in 2004 as an agreement remains of how the country will adapt to the between Cuba and Venezuela, is also based on market economy that the integration mechanism economic cooperation between governments operates. Mercosur also has associate members and public enterprises and not on the creation that make up Mercosur Politico, which, as well of market integration mechanisms. The project as being a specifically political forum, organises is very reliant on Venezuela’s resources. Cuba, a series of sectoral and social meetings. The Bolivia (2006), Ecuador (2009) and associate members, together with the full (2007) are all part of ALBA, but Bolivia and members, belong to Mercosur Politico and Ecuador retain their links with what remains of include Venezuela, Bolivia, Chile, Peru, Colombia CAN and, similarly, Nicaragua with the Central and Ecuador. American process. Dominica (2008), Saint Vincent and the Grenadines (2009), and Antigua The countries of the South American Pacific and Barbuda (2009) are also part of both ALBA (Chile, Peru and Colombia) have implemented and the (CARICOM). an open economy strategy that has boosted ALBA is more oriented towards cooperation than their growth. In this context, they have secured integration. a series of trade agreements with countries from the region and the U.S., the EU and the European For their part, the countries of Central America Free Trade Association, as well as (in the case of have carried on pursuing the integration process Chile and Peru) the main Asia-Pacific countries. initiated back in the 1960s through SICA (Central The agreements all contain rules and procedures American Integration System), of which the for the settlement of disputes. Chile and Peru Dominican Republic has also become a member. are also involved in negotiations on the Trans- These countries also have a free trade agreement Pacific Partnership, which will be an extension of with the U.S. and have signed an agreement with an agreement originally involving the P4 (Brunei, the EU that needs to be ratified.

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Since 1972, CARICOM has served as a common The former has an Ibero-American Secretariat market for the countries of the English-speaking as well as cooperation budgets, mainly from Caribbean and and in 2001 it became Spain. The OAS has a strong organisational a single market and economy for 15 countries of and diplomatic structure in Washington, DC, as the Caribbean. well as various cooperation mechanisms on a range of issues (public security, anti-terrorism, This array of different cooperation and integration defence, drugs, education, culture, science and bodies is, of course, a product of history. It shows technology, health, social development, human how difficult it has been to persist with common rights, women, children and youth, infrastructure policies in many of these projects and also that and transport, communications, agriculture, etc.). the establishment of alternative options has Yet a further example of inter-American links is been heavily influenced by the foreign policies the Summit of the Americas, a periodic meeting of some of the leading countries. Although all of heads of state and government held with the Latin American governments have been keen to support of the OAS and other regional and global join these mechanisms, they have done so only international organisations and which also holds as long as it does not significantly affect their some periodic ministerial meetings. domestic policies. Without a permanent secretariat, it will not What will CELAC be able to be easy for CELAC to develop coordination between the different integration and cooperation achieve? mechanisms that exist in Latin America and the The many different forums and bodies that act in Caribbean, and, at least in the short and medium different public policy fields in Latin America and terms, merging them appears unthinkable. Each the Caribbean in response to different mandates of the mechanisms mentioned has bodies that demonstrate the difficulties of coordinating operate independently and in most of them there cooperation among such a large number of are ongoing parallel processes for coordinating forums and institutions with different mandates policies at ministerial level. that include different combinations of countries from Latin America and the Caribbean, as well In addition to all of the above, there is UNASUR, a as, in some cases, the U.S. and Canada or Spain South American cooperation project based on the and Portugal. Brasilia Treaty of 2008, the objectives of which also concern coordination and cooperation, but In summary, it can be said that the establishment only within South America, and which has an of CELAC is a renewal of the urge to have a incipient general secretariat. However, given regional vision that since 1986 has been realised Venezuela’s opposition, the UNASUR treaty through the Rio Group, but which is now taking also did not as such propose merging the sub- place against a background of a much more regional economic integration processes (CAN complex and diverse regional political spectrum and Mercosur) and focuses mainly on political and a vast array of cooperation and integration aspects and the coordination of public policies. projects that are either ongoing or in crisis. Furthermore, CELAC has not been assigned To further complicate the matter, two organisations all the tasks involved in being the region’s that transcend Latin America and the Caribbean interlocutor that are currently being carried out by need to be considered: the Ibero-American smaller country groupings (such as UNASUR) or Summit – at which Spain and Portugal have been several of the abovementioned integration and meeting up with the Spanish- and Portuguese- cooperation bodies. speaking countries of Latin American and the Caribbean since 1991 – and the OAS – set up An organisation such as CELAC is unlikely in 1948, and which today comprises all the to become a point of consensus unless its countries of Latin America and the Caribbean, member states give up pursuing their own with the exception of Cuba, as well as the U.S. specific interests. Members include Mexico and Canada. and the countries of Central America, whose - 5 - CELAC: a voice for Latin America and the Caribbean? international problems are very directly bound CELAC came into being, under the significant up with the U.S.; the Caribbean region, which influence of Venezuela, as a compromise between is also a neighbour of the North American giant; the unification projects instigated by Mexico (the and many South American countries, such as Rio Group) and Brazil (CALC). It faces the difficult Colombia, Chile and even Brazil, that have not challenge of achieving regional representativity adopted foreign policies that are antagonistic to and moving forward with the many different Washington. It may become an alternative to the cooperation and integration projects in Latin OAS, which was put forward as one of the aims American and the Caribbean that appear to be by some countries in Caracas. either stalled or in crisis.

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