Latin America Forms Bloc Without U.S., Canada

By Daniel Cancel and Charlie Devereux - Dec 4, 2011 10:33 AM GMT+0700

Latin American and Caribbean countries signed the “declaration of Caracas” today in Venezuela to formalize the creation of the Community of Latin American and Caribbean States, an economic and political bloc that excludes the U.S. and Canada.

Leaders and officials from 33 countries approved the declaration that pledges to improve ties in the region.

The Celac, as it is known, which Venezuelan President Hugo Chavez says fulfills the dreams of Simon Bolivar and other liberators in the hemisphere, will seek to boost regional trade and integration and may create an international reserve fund to protect its members against the global economic crisis.

“We’re laying the foundation stone for integration,” said Chavez, who postponed the same summit in Venezuela by five months after undergoing surgery to remove a cancerous tumor. “Only unity will make us free.”

While leaders from countries critical of the U.S.’s foreign policy, including Cuba, Nicaragua and Venezuela, have said they expect the Celac to replace the Washington-based Organization of American States, other members from Mexico to Chile see it as a complementary organization.

Caribbean, Latin America

“This is in our interest, not against the OAS or Iberoamerican Summit, this is integration between Latin America and the Caribbean,” said Juan Manuel Santos, the president of Colombia. “I laud the meeting as a step in the right direction for Latin America.”

While the U.S. refrained from commenting, Chinese President Hu Jintao sent Chavez a letter congratulating the region for the creation of the group.

“I’d like to send my warmest congratulations,” the letter said, according to an e-mail from Venezuela’s Foreign Ministry. “China is always looking to approach its ties with Latin America and the Caribbean from a strategic perspective and is willing to deepen dialogue, exchanges and cooperation.”

Chile will assume the presidency of the group during its first year and the next summit will be held in Santiago at the end of 2012.

Presidents from Costa Rica, El Salvador, Guayana and Peru were unable to attend the Celac meetings.

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net Charlie Devereux in Caracas at cdevereux3@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net