Takes Two to Tango: Why Washington Can't Win in South America
April 28th 2008, by Nikolas Kozloff
Perhaps one of the more unlikely but compelling stories to come out of South America in recent years has to do with the budding strategic relationship between Venezuela and Argentina. Together, the two countries constitute a formidable bloc that could make all the difference in defining South America's future geopolitical trajectory.
But now, Chávez is testing the revolutionary fervor of his Argentine counterpart, Cristina Fernández de Kirchner.
The Venezuelan President has set his sights on Sidor, an Argentine-owned steel plant. The firm is one of Latin America's most important steel factories and was Venezuelan state property until 1997 when it was privatized and sold to a consortium of corporations. The largest majority stakeholder is currently Argentine company Techint.
As part of his assault on the neo-liberal economic policies of the past, Chávez has long sought to "nationalize everything that was privatized" by previous Venezuelan administrations. Having already taken over the cement industry, several milk producing plants, dozens of large farms, as well as the electricity, telecommunications and petroleum industries, Chávez is now moving on to the strategically important steel sector.
On April 9th, Venezuela put its incipient alliance with Argentina to the test by announcing the government's decision to nationalize Sidor. It was the first time that Venezuela had acted to nationalize a company from an allied nation. Rubbing salt in the wound, Venezuela's Vice President Ramón Carrizalez denounced Sidor's management for its "colonizer attitude" and "barbarous exploitation" of workers. "This is a government that protects workers and will never take the side of a transnational company", Carrizalez added.
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