Crisis with Ecuador: deputies listen to the Minister of Foreign Relations
Minister Celso Amorim comes to the Chamber to explain the position of Brazilian diplomacy
On Wednesday (12/3), in a hearing with the Minister Celso Amorim, promoted by the Committees on Foreign Relations, Agriculture and Economic Development, the deputies listened to the minister of Foreign Relations, Celso Amorim, who explained the position of Brazilian diplomacy regarding the crisis with Ecuador.
Rafael Correa’s government recurred to the International Chamber of Commerce in Paris, and asked for the suspension of the loan granted by the Brazilian Development Fund (BNDES), for the Construction of a hydroelectric power plant in Ecuador, by the Brazilian contractors Norberto Odebrecht – a construction work that presented problems.
Contamination
According to the President of the Committee on Foreign Relations and National Defense, Deputy Marcondes Gadelha (PSB-PB), the deputies fear that other countries in debt could also decide to contest their debts with Brazil. “We do not worry only about Ecuador’s case. We want to isolate that case, so that it does not contaminate our relations with other countries, and does not generate a domino effect, a chain reaction, that would eventually transform South America into a large cartel of debtors denying their debt, or denouncing it as illegitimate.”
Surprise and worry
Celso Amorim highlighted that any country has the right to file a lawsuit in an international court to challenge a contract. Nevertheless, due to the friendship relation between the two countries, the Brazilian government was “surprised and worried” because of that attitude. According to the minister, Ecuador recurred to an external court without having ever sent any official communication to Brazil, in which it would contest the terms of the contract with BNDES. Celso Amorim affirmed that the situation may hamper the granting of new loans to Ecuador.
“Our action is a natural consequence. We are not doing it for retaliation, I want to emphasize that, but for prudence. How can I now, as the Minister of Foreign Relations, grant a loan to a country that has just said they will not pay a former one, without consulting us, without trying a previous negotiation? I do not know if that negotiation would be well succeeded, but they did not even try. Thus, that fact limits us, and will cause problems, indeed, for South-American integration.”
Risk increase
According to Celso Amorim, the challenging of the contract and a possible non-payment of the debt can worsen the situation of South-American countries in the risk-assessment system for the definition of international loans.
The minister, though, defended the politics of the government, which considers granting loans to other countries to finance the purchase of exported goods and services produced by Brazilian companies. According to him, the credits help exports of Brazilian goods and services; they help the economic and social development of these countries – which guarantees peace inside the continent, and, as a result, they continue to make purchases in Brazil; it also fosters the physical integration of South America, since most of the projects belong to the infrastructure area.
The minister said that Brazil intends to meet with other countries of South America, to avoid new contestations of loans and conflicts with Brazilian companies.
Resentment
Deputy Aldo Rebelo (PCdoB-SP) said that he was worried about the information given by the minister – that the balance of trade between Brazil and other countries of South America was US$13.5 billion in 2007. According to him, if there is no balance in trade between Brazil and its neighbors, there will be resentment. He suggested that there be an increase in the volume of commerce, but the decrease of Brazil’s advantage.
Report - Cristiane Bernardes
Editing - Maristela Sant'Ana / Rejane Xavier
Translation - Positive