Chile is confident of resolving a dispute over natural gas exports that has soured relations with crisis-hit Argentina, President Ricardo Lagos said on Saturday.
The two South American neighbours have been locked in a war of words over Argentina's decision to cut gas exports as it grapples with its worst energy shortage in 15 years.
Lagos ruffled feathers earlier this week by saying Buenos Aires "lacks clarity" over the issue.
But in an interview on Saturday with Reuters and Spanish news agency EFE, Lagos struck a more conciliatory line. International agreements had to be fulfilled, but Lagos said he understood why Argentina felt the need to restrict exports.
"We are confident. We are working together with Argentina," said Lagos, who was on the final day of a three-day visit to Singapore.
"In the long run, we have a strategic understanding with Argentina, and I think that we are going to be able to solve this crisis in the interest of both countries," he said.
Lagos said he expected Chile's economy to grow around five percent this year, in line with the finance ministry's forecast of 4.9 percent.
Chile is the world's leading exporter of copper and its markets tumbled this week on fears of a sharp economic slowdown in China, the largest importer of the metal.
Lagos expressed the hope that a raft of tightening measures announced by Beijing would succeed in steering the overheating economy to a soft landing but acknowledged the risks - not just to Chile.
"China is becoming the new engine of the world economy and therefore everybody is looking at what's happening to the engine. It's like during the '70s or the '80s when you used to look to Japan or Germany," he said.
APEC CHAIRMAN: Finance Minister Nicolas Eyzaguirre said he expected the pace of growth in China, which some economists believe is well above 10 percent, to slow to a more sustainable range of seven percent to nine percent.
"We do not believe in the scenario of a sharp deceleration," he told Reuters.
Chile holds the rotating presidency this year of the 21-member Asia Pacific Economic Co-operation forum, and Lagos said he hoped a meeting of APEC trade ministers in Chile in June would help break the logjam in the Doha round of world trade talks.
APEC's membership was diverse, ranging from the United States to Papua New Guinea, and representative of the 147-nation World Trade Organisation without being so unwieldy, Lagos argued.
"Because it's so different, it may be possible to advance a little," he said. "The major players have to be around the table, and most of the major players are in APEC."
Lagos flies from Singapore to New Zealand, where he hopes to narrow differences on a free trade agreement.
The president acknowledged that Chile's farmers feel uneasy at the prospect of greater market access for New Zealand's highly efficient dairy producers but said Chile must prepare for the challenge.
Comments
Comments are closed.