Brazilian President Luiz Inácio ‘Lula’ da Silva proposes the reintegration of South American countries through the Union of South American Nations (UNASUR) and moving away from the US dollar in bilateral settlements in the region.
In his opening speech at a summit attended by 11 South American presidents, President Lula announced that the region must rebuild its integration framework to face the challenges of ongoing globalization.
Lula emphasized, “There is no time to waste. South America has the opportunity once again to walk the path of unity, and you don’t have to start from scratch. The Union of South American Nations is a collective good. Remember that it is valid.”
The Union of South American Nations is an institution for regional integration established in 2008 to organize the diverse perspectives of South American countries. Despite its importance with the reintegration of Brazil and Argentina, it still needs the integration of the remaining countries in the region, including Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay.
Lula stressed the necessity of integration in South America, stating that “no state can face the current systemic threats alone.” He concluded his speech by saying, “Only through joint cooperation can we overcome them.”
Moving away from the US dollar, Lula also proposed diversifying away from the US dollar. He suggested implementing bilateral settlements within the Union of South American Nations using currencies other than the US dollar and restoring simple credit mechanisms to avoid reliance on international financial institutions such as the International Monetary Fund.
Lula declared, “We must also strengthen our South American identity in the monetary field through more efficient compensation mechanisms and establish a common reference unit for trade to reduce reliance on foreign currencies.”
Previously, in a bilateral meeting with Venezuelan President Nicolás Maduro in Brasília, Lula stated that he has “dreams” of conducting trade relations in South America using a currency other than the US dollar.
The governments of Argentina and Brazil had previously discussed issuing a common currency for South America in January, which would be directed towards settling international transactions between Mercosur and BRICS countries.
Lula’s proposal focuses on enhancing the financial and economic independence of South America, achieving regional integration to confront global challenges, and gaining independence from major international financial institutions.