CAF reiterates commitment to Latin America and Caribbean integration

Organized by the chair of the International Affairs Committee of the House of Representatives, the event brought together international and regional organizations, as well as presenters with different profiles and experience, with the aim of providing a wide range of proposals that allow progress towards Latin America and Caribbean integration.

The opening remarks were delivered by the Vice President of the Republic, Beatriz Argimón; CAF’s representative in Uruguay, François Borit; Ambassador Diego Escuder, Director General of the Secretariat of the Ministry of Foreign Affairs; and Deputies Diego Reyes, member of the International Affairs Committee of the House of Representatives, and Ope Pasquet, president of the House of Representatives.

“Since its creation, CAF has pledged to contribute to sustainable development and integration. For over 50 years, we have relied on our thorough understanding of the reality of the countries of the region. This cooperative was conceived with the purpose of integration in the Andean sub-region, and is now integrating all of Latin America and the Caribbean, benefiting 21 countries,” said Borit.

To meet its objectives, CAF technically and financially supports programs related to issues in various sectors, such as industries, infrastructure, strengthening of SMEs, improvement of logistics, health, education, border development, among others.

The CAF representative added that “although the benefits of trade integration for poverty reduction and macroeconomic stability with the consolidation of broader markets are undoubted, the process has not brought all the expected benefits in the region.”

Given this reality and encouraged by the need to redouble efforts to advance in this integration, the bank increased its assets between December 2021 and March 2022 by about USD 7 billion, the largest capital increase in its history.

“One of the great challenges of integration is to move from vision to action, and move from planning to completion. A great effort both in greater investment and organization is key. To this end, CAF provides support instruments designed under five basic criteria, but that are key for intervention, which translate into agility, coordination, sustainability, impact and concreteness. The commitment to integration of Latin America and the Caribbean will only be possible if there is political will, trust and consensus. That is the virtuous power of unity. We have to think like a bloc. By negotiating globally, we are stronger,” Borit concluded.

After the opening remarks, the panel entitled “The Role of Multilateral Organizations in Latin America and the Caribbean Integration Processes” began. Julio César Valentín, senior advisor in Strategic Programming at CAF; Sergio Abreu, Secretary-General of the Latin American Integration Association (ALADI); Ambassador Gustavo Martínez Pandiani, Undersecretary for Latin America and the Caribbean of the Argentine Foreign Ministry; Gabriel Porcile, director of the Office of the Economic Commission for Latin America and the Caribbean (ECLAC) in Montevideo; and Luiz Gonzaga Coelho Junior, director of the Administrative Secretariat of Mercosur.

Valentín noted that CAF consolidated itself as “the bank that promotes sustainable development and regional integration. CAF has been growing, bringing in new partners, to reach a capital of some USD 30 billion, with projects that are usually quite agile compared to other financial institutions.

For the advisor, one of the major benefits of integration is “having the possibility of leveraging our strengths and knowledge as nations and economic actors to try to participate in a more leading, decisive role in the world.”

Valentín added that although Uruguay is an “emblematic space of integration,” it has since in 1960 created the Latin American Free Trade Association (ALALC), replaced in 1980 by the LAIA, although it achieved great trade advances such as the reduction of tariff rates, but “there is still a reality that calls for redoubling efforts.”

“Unlike other regional blocs in the world, in terms of inter-regional trade, Latin America and the Caribbean show a decline, despite these measures. Only 15% of trade is done within the bloc, unlike European countries, where 60% of its market is inter-regional. This means that greater efforts must be made to implement other measures beyond tariff reductions. As part of these measures, CAF faces many challenges for integration, such as environmental, commercial, energy, economic, cultural, political, tourism and regulatory,” he said.

In this regard, CAF intends to start working on sustainability. “We emit a mere 12% of greenhouse gases. We are, however, the most threatened and vulnerable region, which requires strong responses. Therefore, the bank is considering a green pact to unify our countries in providing concerted responses. As a development finance institution, CAF boasts the necessary instruments to address this challenge of reaching an agreement for integration,” concluded Valentín.