Evening star., 1933-04-02
LATIN AMERICANS REVIVE
TRADE BLOC MOVEMENT
Vast Possibilities of Multilateral Customs
Agreements Are Explored
by Commentators.


Southern Economic Union would be the
meeting Of az international conferences,
in which the five metioned countries
would agree to: (a) A standard Gus
toms tariff for all foreign products and
for the products of the five countries
of the union; (b) a gradual reduction
of the latter, 20 per cent yearly, so
that at the end of four years the duties
on products from the countries form
ing the union would disappear, and (c)
duration of the agreement for period
of 20 years, at the end of which 1t may
be renewed.
Inclusive Compact Mentioned.
II the figures previously mentioned
relate to a proposed union OF only hVe
of the Southern republics, it can be
easily visualized what an economic
union of all the Latin American ma
tions would amount to. OF course those
countries are at present separated by
geographic and political obstacles very
| difficult to overcome, but the idea or
an economic compact including all the
nations south of the Rio Grande has
already been advanced and discussed by
Latin statesmen, following the sugges-
ton of former Foreign Minister Planet
| of Chile.
To stress the importance of such a
union, and the effects it would have
upon the whole economic structure OF
the world, it is only necessary to bear
in mind the potentialities and capacity
of production of that region.
The Latin American continent Is un-
doubtedly the most promising of the
non-eXploited regions of the earth. The
temperate zone of the Northern Hem
isphere has already been populated and
exploited in large scale.
Europe, with some $50 million IN
habitants, has an average of As inhab-
itants per square kilometer. Asia, with
total population of billion, has
about 25 inhabitants per square kilo-
meter. Africa has an average close to
5 inhabitants per square klometer. But
Latin America, with nearly 100 million
inhabitants, has only an average of SO
per square kilometer.
In the Northern Hemisphere, the
temperate zone has been exploited to
the limit of it's capacity. Europe is
unable to increase her production of
food or raw materials. Asia, with her
tremendously large population and
enormous desert regions will neither be
able to augment hsrs and will con-
tinue to be dependent upon foreign
sources Of production. Even the natural
reserves of the United States may some
day be endangered by this country's
growing population and overwhelming
industrial development.
Unexpected Regions Needed.
The world must look for the unex-
plotted regions of the globe. Europe
and Asia, just as much as the United
States, need the products of the temper
ate and tropical zones of Latin America.
Outside of these, there are only two
other regions where the world can seek
new sources of production and natural
resources still undeveloped, Australia
and New Zealand, but Latin America
has many advantages over them.
All Of Argentina, all of Chile, all of
Uruguay. the South of Brazil, the higher
cones of Bolivia. Peru, Ecuador and
Colombia, are already producing large
amounts of grains, and possess great
quantities of live stock
Mexico is the third largest producer
Of oil in the world, the largest pro-
ducer of silver, and has almost a mo-
nopoly of the "henequen" or "sisal"
thread. Cuba is the first producer Of
sugar in the world. Venezuela is al
ready the second largest oil producer,
after the United States. Bolivia is the
largest oil producer, after the United
States. Bolivia is the second producer
| Of tin in the world. Chile possesses
|
the second largest producer of copper.
Argentine is one of the most important
sources of agriculture products in the
world. Her meats and grains are ex-
ported in large quantities to Europe and
the United States and she also has the
monopoly on "quebracho." Brazil is the
worlds largest coffee producer, and the
rest Of the production is almost exclu-
Stvely raised by other Latin American
, 1 nQIInfrinc 1xy oil Of
ductlon OF the world also comes from
) Latin America, principally Brazil and
Ecuador. Colombia is today the largest
producer of platinum. The sugar and
cotton crops of Brazil, Peru, and other
Latin American republics are already
J among the important ones in the world.
! AS for rubber, Brazil and Bolivia can
very well recuperate their old pre-
dominant position by means of planta-
tons OF the type existent in Malaya.
The greatest oil reserves are also In
Latin America. 1t is impreSsing to
watch the growth of the oil produc-
tion in Venezuela. Colombia, Peru, etc.
IN the last few years. The decrease in
the Mexican production is probably only
temporary.
As for the power sources used for
the production and distribution of nat
ural and industrial products-coal, iron,
|
does not even know approximately the
limits Of its riches. 1t has already been
! said that Brazil possesses % per cent
of the iron reserves of the world. And
Of the mineral reserves of the other
Latin American countries very little is
known.
If the economic union of the 48
, states of this country has resulted in
the Stupendous material development
which we witness in the United States,
and IL such wonderful things are ex-
! pected of the proposed European union
of the late M. BRAND and the imperial
customs union advised by the British
protectionists, what could not be ex-
pected of an economic union of the 20
Latin American republics, gifted by
Nature with all the raw materials and
resources which enter into the eco
nomic life of nations?
Hard as it is to conceive such
union under the present circumstances,
the mere vision of its Importance
should suffice to attract the attention
Of the worlds economists toward its
possibilities in the future.
(Copyright. 1933)