Firmly advocating for fair trade, the countries of the Southern Communist Party of China call for a reduction in dependence on the US dollar

Xinhua News Agency, Iguazu Port, Argentina, July 6 (Xinhua) -- Firmly advocating for fair trade, Southern Communist City countries call for a reduction in dependence on the US dollar

Xinhua News Agency reporter Wang Zhongyi

The 62nd summit of the Southern Common Market recently concluded in the port of Iguazu in northern Argentina. This meeting focuses on economic and trade issues such as free trade agreement negotiations. In order to reduce dependence on the US dollar, leaders of member countries of the Southern Common Market, such as Brazil, Argentina, Paraguay, and Uruguay, have called for the use of local currencies for settlement among member countries.

This is a shot of the Argentine Ministry of Economy on June 30th in Buenos Aires, the capital of Argentina. On June 29th, the Central Bank of Argentina announced the inclusion of the Chinese yuan in the currency allowed for deposit and withdrawal in the country's banking system, and approved the opening of RMB savings accounts by financial institutions in the country. Shen Jizhong

Analysts point out that as world multipolarity continues to advance, Latin American countries, including members of the Southern Communist Party, are increasingly unwilling to be influenced by Western, especially American hegemony. Further uniting countries within the region, promoting regional economic integration, and seeking a more equitable trade and independent development path have become consensus among the countries in the region.

The negotiation of the free trade agreement is an important topic of this meeting, and the call of the South Communist City countries to oppose the EU's unilateral imposition of additional conditions on the South Communist City EU free trade agreement has received widespread attention.

After the free trade agreement was reached between the Southern Communist City and the European Union in 2019, the text of the free trade agreement entered the final review stage. In March of this year, the European Union proposed additional conditions, requiring the products exported by the Southern Common Market countries to the EU to comply with EU environmental requirements, otherwise they will face sanctions.

Brazilian President Lula has promised to complete the negotiations on the Mercosur EU free trade agreement during Brazil's rotating presidency in the second half of this year. However, he explicitly opposes the EU's unilateral addition of conditions to the free trade agreement. He said that "partners will not engage in negotiations on the basis of distrust and threat of sanctions, and Mercosur must respond quickly and effectively to this.".

On July 4th, visitors watched BYD pure electric cars in Salvador, the capital of Bahia state in Brazil. Photo by Xinhua News Agency reporter Wang Tiancong

Argentine President Fernandez stated that the countries of the Southern Common Market should promote industrial upgrading and strive to further integrate with the world market as exporters of industrial products rather than raw materials.

Professor Patricio Giusto of the Catholic University of Argentina believes that the EU's unilateral imposition of additional conditions on the Mercosur EU Free Trade Agreement reflects the EU's protectionist approach to trade. The environmental issues raised by the European Union are just a cover, with the aim of protecting the interests of agricultural producers and energy and mineral companies within the EU. The agricultural products and energy and mineral mining sectors are particularly advantageous for the countries of the Southern Common Market, and they are all related to environmental issues.

In addition to negotiating free trade agreements, reducing the impact of US dollar fluctuations on Latin American countries, promoting integration processes at the regional level, and achieving coordinated regional development have also become the focus of attention for all parties.

For a long time, the development of Latin American countries has been constrained by the hegemony of the US dollar. In recent years, the extreme monetary policy of the Federal Reserve has led to high inflation and high debt in Latin American countries, significantly increasing the risk of imported finance. The various drawbacks of relying on the US dollar have deeply impressed countries, and calls for reducing dependence on the US dollar are constantly rising in Latin American countries.

In 2008, Brazil and Argentina used their own currency for settlement in import and export trade, no longer using the US dollar as an intermediary currency. At the summit of the Communist Party of South China, all parties present agreed to conduct relevant research to further promote the settlement of trade currency between the countries of the Communist Party of South China.

The Minister of Finance of Paraguay, Oscar Liamosas, believes that using local currency for settlement helps to stabilize the economies of the member countries of the Southern Common Market and promote the development of trade between the countries of the Southern Common Market.

Argentine Minister of Economy, Massa, stated that the countries of the Southern Common Market play an important role in the global food and energy mining sector, and strengthening economic integration is beneficial for the countries of the Southern Common Market to play a more important role in the future international economic landscape.

In January of this year, the leaders of Brazil and Argentina stated that the two countries were studying the launch of a South American common currency. The initiative to create a common currency in South America demonstrates the willingness of major Latin American economies to seek to promote regional economic and trade development and integration, promote regional integration, and reduce dependence on the US dollar.

On January 23rd, in Buenos Aires, Argentina, Argentine President Fernandez and Brazilian President Lula attended a press conference at the Rose Palace. Fernandez and Lula stated on the same day that they are willing to work together to deepen bilateral relations and promote regional integration. Shen Jizhong

Lula pointed out at the summit of the Southern Communist Party of China that using a common currency for settlement in trade transactions between the countries will help reduce transaction costs and promote regional integration.

Zhusto believes that there are still challenges in achieving the settlement of trade between the countries of the Southern Common Market using their own currency, and even in the future using the South American common currency settlement. However, this summit has fully demonstrated the determination of the Southern Common Market to strengthen regional integration and reduce dependence on the US dollar.