The ongoing feud between Venezuela’s Benito Mussolini Hugo Chavez and Mexico’s Vincente Fox is heating up. Fox is one of many Latin American leaders who supports the creation of a hemispheric wide Free Trade Area of the Americas (FTAA). Fox, like any pragmatic leader clearly sees the benefits free trade offers for all parties involved. Expanding markets and enhancing possibilities for economic growth is the reality of free trade, as witnessed in Europe and North America. Certainly, there will be elements in any economy that will loose out in free trade, but these loses are outweighed by the considerable benefits.

Hugo Chavez, an outspoken critic of anything affiliated with the United States, wasted no time in voicing his opposition to the proposal. Chavez, it should be remembered is a socialist and like most socialists, his paramount concern is the enhancement of state power, not the enhancement of individuals. In spite of Chavez’s claims he is no friend of the poor. His anti-American rhetoric is strategically designed to draw attention away from his failure as a populist as he consolidates power, while doing nothing to alleviate poverty or grow the economy. Indeed, under Chavez, the poor are worse off than they were before he assumed office. Chavez’s comments serve only to instill fear in the population, while focusing their anger on an external enemy, rather than the true culprit. As President Fox pointed out after the recent Summit of the Americas, "we have some presidents, fortunately a minority, who blame other countries for all their problems."

Because Chavez’s rhetoric demands his opposition to any and all things affiliated with the US or its proposals it was only natural that he would come to criticize other Latin American leaders who also support the idea of a hemispheric free trade area. Chavez derided Mexican President, Vincente Fox as a puppy of “the empire” (i.e., the United States), he later threatened Mexico, much in the way he has threatened the US on numerous occasions. The US generally ignores Chavez’s comments, not so much because they are taking the high road but because they can’t afford not to. Venezuela is one of the world’s largest oil exporters and the US can ill afford a disruption in oil supplies (something Chavez clearly recognizes and uses to his advantage). Here again we see the dangers of dependence upon foreign oil. Mexico, however, is not constrained by such circumstances. Mexico is a major oil and natural gas producer in its own right and has no fear of Chavez. Mexico has demanded an apology from Chavez for his threats or they will sever diplomatic relations with the Mussolini of Latin America. This one is not likely to be resolved soon. But perhaps in the end Chavez will be exposed for the farce he truly is.
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