Lima, May 17, 2005
Press Release from the Office of the President of the Republic of Peru

The President of Peru, Alejandro Toledo, as President Pro Tempore of the Andean Community (CAN), stated this afternoon that this body faces the challenge of making the subregion’s economic integration a reality and that this also entails social inclusion to bring down existing poverty rates.

He pointed out in this regard that Andean authorities cannot fail to recognize the existence of certain limitations in the integration process, above all in the distribution of the benefits of economic growth.

There is a major imbalance between the impressive macroeconomic accomplishments and the positive impact they should have on the poor population in order to reduce existing inequalities, the Head of State remarked in his address at the formal session celebrating the thirty-sixth anniversary of the signing of the Cartagena Agreement, held at the organization’s headquarters.

The President warned that if the CAN fails to consider that priority, the accomplishments of an effective economic policy will be worthless.

He stated that as President Pro Tempore of the CAN, he has given priority to four themes on which the political agenda for the XVI Andean Presidential Summit will be based: drugs and social exclusion; physical and energy integration; investment and social cohesion; and political stability and governance.

“We are all jointly responsible for this pending agenda,” he stressed, after pointing out that with it we could start building more equitable and cohesive societies in the subregion that would help to establish consolidated and socially viable states in the context of ongoing globalization.

After weighing up the accomplishments of the CAN over its 36 years of existence, the President contended that we must build strategic alliances at the Andean level in all spheres of development, so that the region can be consolidated as an economic space capable of participating in major world markets with comparative advantages.

In this context, he put forward the need to rapidly conclude free trade agreements with the United States, the European Union and the Asian blocs, as well as with MERCOSUR at the hemispheric level.

In referring to the antidrug effort, he acknowledged that much still remains to be done.

He considered that the Andean coca producing countries should make a strong strategic alliance with consumer countries in order to resolve the social demands of coca producers equitably and thereby check the advance of drug trafficking.

The Head of State emphatically declared that highway and energy integration are vitally important for a strong and cohesive CAN, by making it possible to boost trade among the Andean countries that will then be able to sell their products at competitive prices.

In this connection, he stressed the building of the Interoceanic highway that will link up Peru and Brazil, a project that both he and Brazilian President, Lula da Silva, are promoting, he added.

The President drew attention to the country’s 5.3 percent third-quarter economic growth this year, continuing the trend of 45 straight months.

Satisfaction over these results, however, cannot be complete, because they are not yet having the desired impact on the lower social strata, still living in a state of social exclusion. He went on to restate the need to institutionalize social inclusion not only in Peru, but also in all of the Andean countries. “The poor are entitled to it,” he concluded.

The President urged the Andean countries not to allow themselves to remain trapped in conflicts of the past. He went on to add that that would be a “serious mistake,” although he did admit that nations have their dignity and need an explanation in order to leave behind the past.

“We have too many challenges ahead to let ourselves be distracted by questions of weapons or conflicts of the past. Peru is unwilling to delve further into past issues, but even so agreements must be reached in order to remedy matters,” he stated.

In this connection, he declared that our peace with Ecuador “is sealed and no one should touch it,” although possible differences may arise along the way.

In subsequent declarations to the press, he pointed out that there is no crisis in the country’s relations with Chile, but that there are pending issues to be resolved, which are in the hands of the Foreign Ministry. “All that remains is to iron out some differences, as we move on,” he added after noting that Peru and Chile have many things in common.

He pointed out that Chile has four billion dollars in accrued investments in our country and that our trade generates one billion dollars a year.