Final Report XLII Regular Meeting of the Latin American Council Caracas, Venezuela 26 and 27 October and 12 December 2016 SP/CL/XLII.O/IF-EP-16 Copyright © SELA, 26 and 27 October and 12 December 2016 All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorize reproduction of this document, whether totally or partially, through [email protected]. The Member States and their government institutions may reproduce this document without prior authorization, provided that the source is mentioned and the Secretariat is aware of said reproduction. Final Report SP/RP/CL/XLII.O/IF-16 CONTEN TS A. RAPPORTEUR´S REPORT 1 B. DECISIONS 19 DECISION N° 559. WORK PROGRAMME OF THE PERMANENT SECRETARIAT FOR THE YEAR 2017 21 DECISION N° 561. AUDIT REPORT ON THE FINANCIAL STATEMENTS OF THE PERMANENT SECRETARIAT AT 31 DECEMBER 2015 79 DECISION N° 562. APPOINTMENT OF AUDITORS FOR THE YEAR 2016 81 DECISION N° 563. DESIGNATION OF A MEMBER OF THE ADMINISTRATIVE TRIBUNAL OF SELA 83 DECISION N° 564. ELECTION OF THE PERMANENT SECRETARY 85 DECISION N° 565. BUDGET PROCESS OF SELA 87 C. DECLARATION 89 “ENDING THE ECONOMIC, COMMERCIAL AND FINANCIAL BLOCKADE OF THE UNITED STATES AGAINST CUBA” 91 ANNEX I. SPEECH BY HIS EXCELLENCY AMBASSADOR ROBERTO GUARNIERI, PERMANENT SECRETARY OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC SYSTEM (SELA) 95 ANNEX II. SPEECH BY THE HONOURABLE FERNANDO DÍAZ, GENERAL DIRECTOR FOR LATIN AMERICA AND THE CARIBBEAN OF THE PEOPLE’S MINISTRY OF FOREIGN AFFAIRS OF THE BOLIVARIAN REPUBLIC OF VENEZUELA 101 ANNEX III. SPEECH BY HIS EXCELLENCY RAMÓN LEETS, AMBASSADOR OF NICARAGUA IN THE BOLIVARIAN REPUBLIC OF VENEZUELA AND CHAIRMAN OF THE LATIN AMERICAN COUNCIL 105 ANNEX IV. NOTE SP-16/0513-169 CONCERNING THE ELECTION OF THE PERMANENT SECRETARY 109 ANNEX V. LIST OF PARTICIPANTS 113 ANNEX VI. LIST OF DOCUMENTS 131 Final Report SP/RP/CL/XLII.O/IF-16 1 A. RAPPORTEUR’S REPORT 1. In compliance with the provisions set forth in Article 12 of the Panama Convention, the XLII Regular Meeting of the Latin American Council was held on 26 and 27 October and 12 December 2016 at the headquarters of SELA in Caracas. 2. Participants included delegations from the following Member States: Argentina, Barbados, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Ecuador, El Salvador, Guatemala, Haiti Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela; the Permanent Secretary of SELA, His Excellency Ambassador Roberto Guarnieri, and officials from the Permanent Secretariat of SELA. The list of participants is included in Annex V. ITEM I. ORGANIZATION OF WORKS 3. On 26 October a Meeting of Heads of Delegation took place prior to the formal opening of the Preparatory Stage, which considered the conformation of the Bureau of the Latin American Council. The Preparatory Stage of the meeting was formally opened on Wednesday 26 October and the Bureau was made up as follows: His Excellency Ramón Leets, Ambassador of Nicaragua in the Bolivarian Republic of Venezuela, as Chairman of the Latin American Council; Her Excellency Marilyn Cheryl Miles, Ambassador of the Cooperative Republic of Guyana in Venezuela, as First Vice-Chairperson; His Excellency Mario López Chávarri, Ambassador of the Republic of Peru in Venezuela, as Second Vice-Chairman; and the Honourable Ramiro León Torras, Specialist of the Ministry for Foreign Trade and Foreign Investment of Cuba, as Rapporteur. 4. His Excellency Ramón Leets, Ambassador of Nicaragua in the Bolivarian Republic of Venezuela and Chairman of the Latin American Council, formally opened the Meeting and, on behalf of his government, thanked the delegations for electing him as Chairman and expressed his willingness to support the activities of the Latin American Council and the Permanent Secretariat of SELA. 5. The delegation of Bolivia apologized for the absence of Ambassador Clarems Endara, Vice- Minister of Foreign Trade and Integration, and Representative to the Latin American Council of SELA. 6. The Permanent Secretary of SELA, Ambassador Roberto Guarnieri, congratulated the members of the Bureau on their election and thanked the outgoing Bureau for its valuable work during the period 2015-2016. Then, he submitted for consideration of the delegations the Draft Annotated Agenda and Organization of Works (SP/CL/XLII.O/DT Nº 2-16), which was approved without amendments and includes the following items: I. Organization of Works II. Annual Report of the Permanent Secretariat III. Work Programme for the year 2017 IV. Budget of the Permanent Secretariat for the year 2017 and administrative matters V. Institutional matters VI. Election of the Permanent Secretary Permanent Secretariat Institutional Document 2 VII. Other Matters VIII. Forum: “Integration Index of SELA for Latin America and the Caribbean” 7. The delegation of Chile reiterated its proposal, previously circulated as an attachment to Note SP-16/0513-169, dated 26 October 2016, which is included in Annex IV of this report, for the election of the new Permanent Secretary to be “postponed for a Special Meeting of the Latin American Council to be held in the next few months which focuses only on this issue, according to Article 11 of the Panama Convention establishing SELA”, adding that “the countries must submit their nominations no less than one month in advance, in order to facilitate reflection and consultations about them”. 8. The Latin American Council approved Decision 564, “Election of the Permanent Secretary, which extends the mandate of the Permanent Secretary for a period that shall not exceed one year from the expiration of his mandate. The Permanent Secretary was instructed to convene a Special Latin American Council for the purpose of the election of the new Permanent Secretary, which must take place within the first half of 2017 and not before the first quarter of the year. 9. Afterwards, on 27 October 2016, at 5:00 pm the Ministerial Stage was opened. Participants in the opening session included Ambassador Roberto Guarnieri, Permanent Secretary of SELA; the Honourable Fernando Díaz, Director-General for Latin America and the Caribbean of the People’s Ministry of Foreign Affairs of the Bolivarian Republic of Venezuela; and His Excellency Ramón Leets, Ambassador of Nicaragua in the Bolivarian Republic of Venezuela and Chairman of the Latin American Council. 10. The Permanent Secretary began the session by recalling that the organization was created on the basis of the recognition of fundamental common interests within the variety of political systems and economic organization arrangements of the member countries, while assessing the potential for joint action to promote intra-regional cooperation and economic integration, increase and improve the presence and participation of Latin America and the Caribbean in the global economy and strengthen its influence on key issues of trade organization, global finance and the international monetary system. Guarnieri reaffirmed he was convinced that SELA is a potentially transcendent institution to trace, within its constitutional competence, an effective path towards integration, by making technical evaluations of the progress made, understanding the nature of the barriers that hinder the process, and proposing actions and public policies to overcome them, on an objective basis resulting from conceptually rigorous and systematic analyses. In order to comply with these objectives, he said, a first-class analytical unit is required, which systematically carries out, under the guidelines and priorities of the Latin American Council itself, a high-level plan with methodological excellence, as well as an thematically organized agenda through time, and a roadmap agreed upon by the Member States, in the area of regional and subregional economic integration. He referred to what he called a continuous proliferation of regional and subregional organizations and institutional mechanisms, during which the Permanent Secretariat of SELA suffered a serious and increasingly notorious backwardness in its capacity to meet expectations and needs of its membership, particularly concerning its mandate to lead “the process towards the full integration of Latin America and the Caribbean”, adding that the need for SELA’s recovery had an existential connotation and urgency. Final Report SP/RP/CL/XLII.O/IF-16 3 Finally, he referred to SELA’s recovery plan, which has been implemented since he took office at the Permanent Secretariat, and entails a significant process of change in trends and specific achievements, based, mainly, on the Direction of Studies and Proposals. He said he was confident that, with the support received from the Latin American Council and the Ambassadors of the Member States during the frequent meetings of the Informal Working Group (IWG), such trend was irreversible, and committed himself to further strengthen it, thanks to the confidence expressed by the Latin American Council in temporarily extending his tenure as Permanent Secretary of SELA. The full text of his speech is included in Annex I. 11. Then the Director-General for Latin America and the Caribbean of the People’s Ministry of Foreign Affairs of the Bolivarian Republic of Venezuela, the Honourable Fernando Díaz, greeted the audience on behalf of the Bolivarian Government and the Vice Minister, Hon. Alexander Yánez Deleuze, who, he explained, due to prior commitments, unfortunately was not able to attend