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Lula Proposes to Revitalize South America Union USAN; Reinforces Need of Shifting Away From US Dollar

Lula Proposes to Revitalize South America Union USAN; Reinforces Need of Shifting Away From US Dollar

Luiz Inacio “Lula” Da Silva, President of Brazil, remarked on the need to retake South American integration mechanisms through the Union of South American Nations (USAN). Lula also proposed to shift away from the U.S. dollar by using a standard reference currency for bilateral settlements among countries in the region.

Brazil’s Lula Proposes to Unite South America Through USAN

Brazilian President Luiz Inacio ‘Lula’ Da Silva proposed to integrate all the countries in South America again through the Union of South American Nations (USAN) and to shift away from the U.S. dollar in bilateral settlements in the region.

While giving the opening speech of a summit with the presence of 11 presidents of South America, Lula stated that the region should rebuild its integration method to face the hurdles of the ongoing globalization process.

Lula stated:

There is no time to lose. South America has before it, once again, the opportunity to walk the path of unity. And you don’t have to start from scratch. USAN is a collective good. Remember that it is valid.

USAN is a regional integration institution that surged to organize the different views of countries in South America in 2008. While it has become relevant again with the reintegration of Brazil and Argentina, it still lacks the integration of half of the countries in the region, with Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay away from the organization.

Lula reinforced the need for integration in South America, explaining that “No country can face today’s systemic threats alone.” “Only by acting together can we overcome them,” Lula concluded.

Shifting Away From the U.S. Dollar

Lula also proposed USAN implement currencies different from the U.S. dollar in settling bilateral payments in the region and rescuing naive credit mechanisms to avoid relying on international financial institutions like the International Monetary Fund (IMF).

Abodu this, Lula declared:

We must also deepen our South American identity in the monetary field through more efficient compensation mechanisms and the creation of a common reference unit for trade, reducing dependence on extra-regional currencies.

Before, in a bilateral meeting with Venezuelan President Nicolas Maduro in Brasilia, Lula stated he had “dreams” of conducting trade relations in South America with a currency different from the U.S. dollar.

The governments of Argentina and Brazil had discussed issuing a South American common currency in January that will be directed to settle international transactions between MERCOSUR and BRICS countries.

What do you think about President Lula’s proposals for the South American Region? Tell us in the comments section below.

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