Ecuador refuses to join ALBA

Caracas, Venezuela, 13 June 2008. In a official communique issued today at Quito, the Ecuadorian government expressed its refusal to join the Bolivarian Alternative for the Americas (ALBA) promoted by Venezuelan President Hugo Chavez as an alternative to the Free Trade Area of the Americas (FTAA).  Quito also expressed its willingness to continue efforts to achieve regional integration initiated by UNASUR and OAS. In a joint declaration signed on 22 December, 2006, at Caracas, President Rafael Correa conditioned Ecuadorian participation in ALBA to the return of Venezuela to the Andean Community. Caracas had left that regional organization  in 2006 after Colombia and Peru signed Free Trade Agreements with the US.

This unexpected turn of Ecuadorian foreign policy towards left driven regional initiatives and apparent distancing from Chavez could have several readings: First, Caracas did not rejoin Andean Community as requested by Ecuador. By refusing to join ALBA, Quito could now be asserting more pressure on Caracas to return.  Second, today´s  backing of President Correa to Chavez´s initiative to have FARC give up armed struggle in Colombia shows Ecuador continues its political friendship with Venezuela. However, economic and commercial considerations may lean Ecuadorian policies towards a future democrat administration in Washington.   Third, Quito could have perceived failure in the functioning of ALBA and the recent U-turns of Chavez policies as opposed to partial success in more traditional initiatives and commercial partners. In 2007, President Correa refused the offer of a Venezuelan loan. However, the Inter-American Bank for Development (BID) plans to give Ecuador US$ 150 millions this year alone to fund infrastructure projects with Argentinian Enarsa. Neighbouring Peru is the third commercial partner of Ecuador. Furthermore, the recent reestablishment of commercial relations with Colombia clearly shows a realistic economic drive in Quito policy making. Diplomatic bilateral relations with Colombia are still broken. Fourth, the decreasing popularity of Correa government and the possibility of failing to win a referendum on Constitutional Reform - due in September 2008- could cause some distancing from Caracas initiatives. Speaking at local TV network Ecuaviasa, Correa today acknowleged the possibility of loosing the referendum and weakening his government.

ALBA is an international cooperation organization. It was created in 2004 by Venezuela and Cuba; Nicaragua, Bolivia and Dominican joined later.  

Sources: Presidencia Ecuador, Globovision, Union Radio, ALBA, Venezuelanalysis, Telesur, Hoy,Ecuaviasa, El Universal, VTV, El Tiempo, Telegrafo, El Universo, Tal Cual, El Nacional, BBC Mundo,    

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