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Zoellick hits at u.s. on trade, says chavez's clout waning - Metal Tin Bucket - Promotional Tin Can by qrt etget





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Zoellick hits at u.s. on trade, says chavez's clout waning - Metal Tin Bucket - Promotional Tin Can by
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Zoellick hits at u.s. on trade, says chavez's clout waning - Metal Tin Bucket - Promotional Tin Can


 
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WASHINGTON

Thu Jun 7, 2012 9:39pm EDT WASHINGTON (Reuters) - Outgoing World Bank chief Robert Zoellick onThursday called for a new partnership in the Americas, criticizingthe United States for insufficient leadership on trade and sayingthat Venezuelan President Hugo Chavez's political influence iswaning. In a politically pointed speech, which is unusual for the head ofthe global development institution, Zoellick urged strengthenedties between North and South America through more cooperation intrade, energy and security. Chavez, a long-time antagonist of the United States, is embarkingon his most challenging re-election campaign while battling cancer,with an opposition united behind his rival Henrique Capriles. While Chavez is expected to win the October 7 election, his criticssay his "revolutionary" economic policies - including waves ofnationalizations - has sharply weakened the economy, fueledinflation and scared away foreign investors at a time when thecountry is faced with a slump in oil production. Much criticized by the opposition are his preferential oil deals,under which foreign allies receive Venezuelan fuel at easy terms,including in exchange for food and other products.

"Chavez's days are numbered. If his subsidies to Cuba and Nicaraguaare cut, those regimes will be in trouble," Zoellick said inprepared text for a speech to the Washington-based Inter-AmericanDialogue. "The democrats of Latin America - left, center, and right - shouldbe preparing. The calls for democracy - for an end to intimidatingthugs, human rights, fair elections, and rule of law - should comefrom all its capitals," he added. Zoellick, who steps down as World Bank president on June 30 whenhis five-year term ends, said Brazil could play a greater role inglobal security by preventing the spread of nuclear weapons.

He referred to a proposal in April by former U.S. assistantsecretary of state for inter-American affairs, Bernard Aronson,that Brazil should voluntarily end its uranium enrichment programand call on other nations, including Iran, to follow its example. "If Brazil wants to help shape the 21st Century, leadership inpreventing the spread of nuclear weapons - with an idea and action- would send a powerful signal," said Zoellick, a former deputyU.S. secretary of state.

CRIME AND VIOLENCE He also warned that fragile governments of Central America are atrisk of being overwhelmed by crime and violence linked to drugtrafficking, gangs and organized crime. The United States shouldtake responsibility for the drug habits of its public that fueldemand for narcotics trade from the south, he added. Zoellick, a former U.S. trade representative, said the UnitedStates should pursue new ways of trading with the region.Washington's influence in the region has long been dominated bytrade and investment but is increasingly being weakened by China'sgrowing influence.

"The United States is no longer leading the open trade agenda, asit relies increasingly on defensive measures," he said. "The UnitedStates has its own high costs of trade - antiquated ports and lawsto protect special interests." Zoellick said the current structure of U.S. Free Trade Agreements(FTA's) with the region offered a solid legal framework. Yet,Washington could use it as a way to explore ways to further reducetrade barriers and create fresh opportunities. "The United States needs to make its hemispheric FTA networkdynamic, linked to business and investment policies, and improvedgovernance," he said.

He said innovation in the energy sector could transform regionalenergy security in the region, especially if Mexico opens its oilcompany PEMEX to outside investment and Brazil increased oil andgas supplies to the region from its giant deep offshore PRESAL oiland gas fields. In particular, more cooperation in energy could help poorercountries in Central America and the Caribbean that have longsuffered from high energy costs, Zoellick added.

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