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Brazil And Argentina To Advance South American Currency

Alberto Fernandez and Luiz Inacio Lula da Silva are preparing to relaunch the strategic alliance between Argentina and Brazil this week in Buenos Aires.

The two will meet for the first presidential meeting between Brazil and Argentina in more than three years.

Immediately after, the VII Summit of CELAC will take place in the same city. The forum that brings together the 33 countries of the Latin American and Caribbean region and which, since last year, has been under the presidency of Argentina. The event will mark the return of Brazil to this mechanism of dialogue and regional consultation.

According to a statement published by the two presidents, there are multiple areas in which the two countries will work together to improve the quality of life of their citizens; “such as the fight against hunger and poverty, health, education, sustainable development, climate change and the reduction of all forms of inequalities.”

“The reindustrialization of our economies will deserve special attention, with the generation of quality jobs and investment in innovation. Trade between Argentina and Brazil already has a high share of industrialized products in strategic sectors. The integration between our production chains helps mitigate external shocks, such as those that occurred during the pandemic. We cannot excessively depend on external suppliers for access to essential supplies and goods for the well-being of our populations.”

They go on to say that Brazil and Argentina will “continue to play a critical role for food security in a world plagued by geopolitical risks and serious disruptions in supply chains.”

Additionally, they hope to promote projects in infrastructure, energy integration and electrical interconnection between our countries, and say they will consolidate their position “as possessors of nuclear technology for peaceful purposes”.

Lula and Alberto say they want MERCOSUR to serve as a platform for their country’s “effective integration into the world through the joint negotiation of balanced trade agreements”.

Common Currency

On currency, the presidents say they intend to break down the barriers to trade by simplifying and modernizing rules and encouraging the use of local currencies.

The two also announce that they’ve “decided to advance discussions on a common South American currency that can be used for both financial and trade flows, reducing operating costs and reducing our external vulnerability.”

As expected, the two have stated their intentions to rescue UNASUR.

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