TEN South American countries have pledged to boost trade, create jobs and cut poverty on the continent at the Mercusor summit in Cordoba, Argentina.

The members of the trade pact Mercusor: Argentina, Brazil, Paraguay, Uruguay, Venezuela, Ecuador, Chile, Bolivia, Peru and Columbia, have agreed to work together to make Latin America a “great world power”.

Venezuela, which formally became a full member of Mercusor at the summit, vowed to tackle social poverty and abolish capitalism in the country. “Capitalism is perverse – if your are rich you get looked after but if you are poor, you die,” said Venezuelan President, Hugo Chavez.

“Latin America has all it needs to become a great world power,” he also told the summit while speaking on social policy. “Let’s not put any limits on our dreams. Let’s make them reality.”

Increasing inter-country links to boost the South American economy were the primary focus of the summit. Mr Chavez also urged the member countries to resist free-market policies advocated by the US, which he believes have weakened the economy.

As with the G8 summit, energy was also a top priority, with the security of energy supplies a major focus for the Mercusor members.

Venezuela and Bolivia have the two largest gas reserves in the region.

Cuba’s Fidel Castro made a rare appearance at the summit to help welcome ally Venezuela into Mercusor. Cuba signed an extended trade deal with Mercusor at the summit doubling the list of tariff-free products to 2,700.

The trade deal will help offset an economic trade bans on Cuba by the United States. (inthenews.co.uk)