Mercosur Requires New Pact to Avoid Being Overtaken by the US, Says Researcher
Key Insights
Mercosur was created in the 1990s, in a context of emerging globalization and a commitment to multilateralism.
The international dynamics have undergone significant changes since then.
There are concerns about the US influence on the South American trade bloc.
The trade agreement between Mercosur and the European Union is also a topic of discussion.
The geopolitics favor a faster ratification of the Mercosur/EU trade agreement, and this may benefit Brazilian agricultural exports.
Why this matters:: The future of Mercosur has significant implications for trade relations between South American countries, the US, and the EU.
In-Depth Analysis
Researcher Flavia Loss de Araujo argues that Mercosur was created in the 1990s, in a context of emerging globalization. However, international dynamics have changed significantly. The researcher recalls the debate on the Free Trade Area of the Americas (FTAA), a proposal that generated apprehension among South American countries. Araujo highlights that Mercosur is still seeking a balance between economic development and the protection of its achievements.
The CNA also debated the Safra Plan and the Mercosur/EU agreement. The geopolitics favor a faster ratification of the Mercosur/EU trade agreement. The average time for ratifying agreements in Brazil is long. However, the current geopolitical moment favors a quicker process, especially driven by the European interest in confirming the strategic alliance with Mercosur countries.
FAQs
Q: What is Mercosur? - A: Mercosur is a South American trade bloc established in 1991.
Q: Why does Mercosur need a new pact? - A: To adapt to the new global realities and maintain its relevance, while protecting the interest of its members.
Key Takeaways
Mercosur is facing challenges to maintain its relevance.
A new pact is needed for the trade bloc.
The relation between Mercosur, the US, and the EU is a key factor for South American economies.
Discussion
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Sources & References
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