Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela are the founding members of the BS.
Colombian Finance Minister Oscar Iván Zuluaga stated today that his country's participation in the Bank of the South, promoted by Venezuela, does not represent an additional obstacle to the US Congress approving the Free Trade Agreement (FTA) with his country.
"No, not at all. The Bank of the South is seen as an effort to integrate the countries of South America and nothing more than that," the minister said during a meeting with several journalists at the end of an event organized by the Colombian-American Association.
Zuluaga added that, if consolidated, this entity would have the purpose of providing resources and acting with many countries and that, therefore, "it has nothing to do" with the FTA between the US and Colombia, pending approval by the US Congress.
At the beginning of the month, Colombian President Alvaro Uribe announced his intention to request membership in that institution, which would be headquartered in Caracas and has Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela as founding members.
The Colombian minister traveled to New York after attending meetings of the International Monetary Fund (IMF) and the World Bank in Washington, a stay he also used to hold meetings with legislators and officials of the United States government.
Zuluaga stated that "there is no progress" in the process related to the FTA with his country, while in the case of Peru "it is progressing very strongly."
"The process with Peru was the same, it was negotiated simultaneously, it's practically the same treaty, so for many it's a sign of what could later happen with Colombia," and he added that "we have to find the conditions" so that the one signed by the US with his country will be the next one to be considered by Congress.
He stated that they did not feel mistreated but that, in the case of Colombia, the debate "has a higher political content than in other countries, and this makes the discussion much greater due to some particularities that, in the opinion of some congressmen, they see in the case of Colombia."
The approval process for the FTA and the Bank of the South were some of the issues that also interested the audience that came to the Harvard Club today to hear the Colombian minister's presentation on the state of the economy and the achievements made in recent years.
"We have made great progress," Zuluaga stressed during his speech, in which he recalled that the economy grew at an annual rate of 6,8 percent in 2006 and at a rate of 7,5 percent in the first half of this year, and shows "a high growth potential."
"We have completed more than five years of continuous economic growth," the minister noted, adding that expectations are that this progress can be maintained in the medium term at between 5 and 6 percent.
He also highlighted that monetary policy has been very successful and that inflation has decreased, and alluded to the efforts the government has made to control fiscal policy and act "in a more restrictive manner."
Zuluaga explained that the "engine" of economic growth in his country is private investment, which has increased at an average annual rate of 25 percent, and that many of the economic policies promoted by the government aim to create favorable conditions to encourage investment.
He also highlighted the increase in foreign direct investment, which has gone from around $2000 billion in 2.000 to $6.500 billion last year and by 2008, "despite this financial turbulence," it may reach $7.000 billion.
He noted that this demonstrates the confidence of the international investment community in Colombia and "the clearest response to the progress the country has made."
The Colombian minister highlighted that his country expects to have signed nine free trade agreements by 2010, that the process is moving very quickly with Canada and the EU, and that they have also requested investment agreements with China and India, among other projects.
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