From Brazil to Venezuela, a surprising Latin anti-inflation “alliance”

Against inflation, unity is strength.

This is what the presidents of eleven Latin American countries want to convince, including the main economic powers of the region, Brazil, Mexico, Argentina, Chile and Colombia, by announcing an “alliance” on Wednesday

to combat rising prices.

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Objective: to facilitate trade between countries in an area where economic integration remains weak.

This agreement was announced by the Mexican government, at the origin of this union, at the end of a videoconference of heads of state, in their vast majority, on the left.

The other member countries are Belize, Bolivia, Cuba, Honduras, Venezuela and Saint Vincent and the Grenadines, AFP said.

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This unprecedented coalition's mission is to encourage trade in food products, in particular through the lifting of trade barriers such as customs duties.

The fluidification of exchanges should make it possible to revive the economy and reduce the rise in prices, hope the promoters of the alliance.

In 2022, inflation reached 5.79% in Brazil, 7.82% in Mexico, but 94.8% in Argentina, a country that has been going through a financial crisis for years.

The contours of the alliance are still uncertain.

Especially since the signatories belong to different free trade zones: Mercosur for Brazil and Argentina, while Mexico is linked with the United States and Canada, recipients of more than 80% of its exports.