Committee approves suspension of agreements with Ecuador

30/12/2008 05h05

On Wednesday (17), the Committee on Foreign Relations and National Defense of the Chamber approved the suspension of the assessment made by National Congress on the agreements closed between Brazil and Ecuador. The proposal – Legislative Resolution Bill (PDC) 1140/08, from the deputy Colbert Martins (PMDB-BA) – received a favorable opinion from its rapporteur, Deputy João Almeida (PSDB-BA).

The rapporteur agreed with the argument that interrupting the procedure of bills on bi-lateral agreements with Ecuador can force Brazilian government to take harsher measures towards the neighbor country. The crisis with Ecuador started some months ago, when that country threatened no paying its debt with the Brazilian Development Bank (BNDES), the Brazilian institution which finances mainly large industrial and infrastructure undertakings. 

The Ecuadorian government of Rafael Correa recurred to the International Chamber of Commerce in Paris, as asked for the suspension of the payment of the loan it had obtained with the Brazilian bank. The loan was directed to the construction of a hydroelectric power plant by the Brazilian contractors Norberto Odebrecht – a work that presented problems. After an auditing in its debt, Ecuador decided to contest the amounts due to foreign institutions, such as BNDES.

Itamaraty
During a hearing at the Chamber, in the beginning of December, the Minister of Foreign Relations, Celso Amorim, explained the position of Itamaraty regarding the crisis with Ecuador. He 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.

Good relations
According to the Deputy João Almeida, “the acts recently performed by the Ecuadorian government harm national interests and attempt against the good relations between Brazil and Ecuador.” For the deputy, the fact that such acts have been practiced without a previous consultation to Brazilian government does not comply with the principle of mutual respect, which should rule the relations of Brazil with other countries.

João Almeida considered the suspension of the assessment of bi-lateral agreements with Ecuador by the Congress an “opportune initial response, without prejudicing other legislative actions that may show themselves necessary”.

Procedure
The Project will still be assessed by the Committee on the Constitution and Justice and Citizenship, before being forwarded to the House Floor.
 
Report - Cristiane Bernardes
Editing- Maristela Sant'Ana