Tensions flare ahead of Europe-Latam summit

12 May, 2006

Tensions between Latin America's leaders flared ahead of a summit with Europe on Thursday as Bolivia's new leader raged against colonial "pillaging" and Mexico told left-wingers to talk more trade and less ideology.
Bolivia's Evo Morales, a former coca grower and labour leader, began his first visit to Europe as president by indignantly dismissing compensation for foreign oil and gas companies whose subsidiaries he nationalised on May 1.
"For more than 500 years our natural resources have been pillaged and our primary goods exported. This has to be ended now," Morales, who won December elections promising to use the country's natural resources to help the poor majority, told a news conference in Vienna.
Morales and fellow left-wing Venezuelan counterpart Hugo Chavez compose the awkward squad at the European Union-Latin American summit on trade, investment and other issues. The EU is the biggest investor in Latin America with major interests worth more than $300 billion in sectors from energy and telecommunications to banking.
Other Latin American leaders showed irritation at what Mexico's President Vicente Fox called a "sterile discussion, or ideological discussion" - a clear reference to the anti-imperialist line of Morales and Chavez.
"Mexico's position is totally clear, we will strive for greater integration at all levels - for opening of markets, fair trade, stronger consumer potential that at the same time creates new jobs," said Fox, a former executive of Coca-Cola.
Peru's Alejandro Toledo also weighed in, saying attempts to boost relations between Andean countries and the EU could not be taken "hostage" by Venezuela.
Chavez has set back trade talks planned between Europe and five South American nations by saying he would pull his country out of the Andean Community.
The former paratrooper is angry at trade deals between fellow Andeans Peru, Colombia and Ecuador with the United States - whose influence in the region he is trying to challenge.
Stressing his native Indian Aymara descent, Morales began the Vienna news conference by telling mainly European reporters that they must be shocked to see someone like him in power.

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