e-book Trade Negotiations in Latin America: Problems and Prospects

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Moreover, the successful conclusion of the agreement reinvigorates the external agenda of Mercosur, boosting current negotiations with European Free Trade Association EFTA , Canada, Korea and Singapore, as well as the convergence with the Pacific Alliance, and also opens up a unique window of opportunity for eventually advancing an agreement with both the United Kingdom and the United States.


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The MEUA takes Argentina and Brazil closer to the OECD, and the institutional anchoring provided by the agreement will not only make it more difficult and unlikely for future governments to adopt arbitrary restrictive measures but will also act as a catalyzer for reforms resulting in a substantial improvement in the business environment for trade and investment. Ratification is expected by Regardless of the winning candidates in the October presidential elections in Argentina and Uruguay, the prospects for passing the agreement in both congresses is good.

Problems and Prospects

In the case of Argentina, were President Macri re-elected, ratification will be a priority. This is either because there is enough genuine support among provincial governors or because not passing the agreement may mean a huge economic setback for Argentina. If Brazil ratifies the agreement but Argentina does not follow suit, Argentina faces the enormous risk of trade diversion and losing the Brazilian market, its largest export destination. In turn, for Uruguay, the ratification process is not expected to face major challenges.

Global issue: Trade conflict a threat to global growth

We see this as a sell-out of Irish and European farmers because Brazil in particular does not meet our standards on food production. Commission to talk about climate action and then encourage more exports from the Amazon rainforest, where the size of a football pitch is cut down every minute. The Joint Research Centre has shown that our beef production is four times more efficient than beef produced in Brazil.

World Economic Situation And Prospects: September 12222 Briefing, No. 130

With the increasing threat of Brexit and the potential loss of our largest beef export market to the United Kingdom for , tons of beef exports, it is illogical for the E. Commission to do this deal with Mercosur. The E. With the United Kingdom out, this self-sufficiency would increase to percent. We want our government to join forces with other member states and oppose this deal as it is bad for agriculture and rural economies.

How Revolutionary is the E.U.-Mercosur Trade Agreement? - The Dialogue

The most benefited products would be beef, pork, poultry, rice, dairy products, honey, sugar and ethanol. Moreover, there are gains in other goods due to lower tariffs, as is the case for fruits, wool and hides, as well as other prepared foods.

The South American industrial sector could be affected, in the case of the automotive industry, plastics, chemicals, medicines, machines and electrical products. The agreement includes provisions for services and incorporates some of the most modern disciplines of international trade, such as provisions on the environment, labor, geographical indications, e-commerce and cumulation of origin.

The inclusion of these topics is a qualitative leap for the Mercosur agenda and its potential relationship with other actors at a global level.

Free trade agreements, regional integration processes, and protectionism (André Sapir)

In any case, for a better use of the deal, all Mercosur countries must undertake the pending internal reforms that still affect competitiveness. As for the debates on the deal, in addition to those already initiated in France and which will surely occur in the European Parliament, they are expected in Argentina, especially if there is a change of government.

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Mercosur: South America’s Fractious Trade Bloc

Part of the Argentine industrial sector and trade unions there have shown their discontent with some of the concessions granted, alleging lack of consultation and little transparency in what the Macri government agreed to. Although a less intense debate is expected in Uruguay, since historically all political parties and the private sector have supported the closure of the negotiations, recent union declarations indicate that there will be a strong internal discussion prior to implementation.

Moreover, it will propel other agreements currently under negotiation with the European Free Trade Association, Canada and Korea. The book is particularly intended for academics including graduate and undergraduate students , researchers, and professionals n development studies, comparative politics, international political economy, and Latin American studies. It will also be useful for decision-makers and policy advisors involved in trade negotiations and the formulation of trade policy. Home Books. Editor s : Mercedes Botto.

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