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Nobody in the Mercosur Seems Pleased with Brazil

The presidents of Brazil and Argentina yesterday pledged to try to answer the demands of small nations in Mercosur for a better deal from the trade bloc.

President Néstor Kirchner and his Brazilian counterpart Luiz Inácio Lula da Silva met in the capital of Brazil, Brasí­lia, to discuss issues raised by Uruguay and Paraguay, whose complaints have threatened to weaken the trade group.

Brazil and Argentina, South America’s biggest and richest countries, represent more than 80 percent of Mercosur’s economy and receive most foreign investment.

"The benefits cannot go only one way," Kirchner said. "Mercosur must also be a bloc of mutual assistance for balanced development."

Lula agreed that Brazil and Argentina must shoulder their responsibility in the process of regional integration and "be generous with our smaller brothers." Neither of the leaders, however, said what concrete measures would be taken for that purpose.

Argentina and Brazil are also entangled in their own trade dispute, which has led some Argentine businessmen to complain of "an invasion" of Brazilian products in Argentina.

Kirchner and Lula, however, insisted that the relations between the two countries are "strategic" and pledged to work together to solve disagreements.

Mercosur has helped Brazil and Argentina boost their bilateral trade from US$ 1.1 billion in 1985 to more than US$ 16 billion last year. But Argentina had a deficit of US$ 3.6 billion with Brazil in 2005, more than triple that in 2004.

Lula yesterday acknowledged the asymmetry, saying that his country is willing to "improve bilateral agreements" so that the trade gap "does not become a structural problem."

Argentina has proposed the introduction of an "economic adaptation" system into the bilateral trade relation to protect some of the most vulnerable sectors of its industry, including car manufacturing, textiles and shoemaking.

The two presidents launched a new system for bilateral consultations, including meetings at presidential level every six months preceded by negotiations at ministerial level.

"The presidents repeated the importance and strength of a strategic alliance between Argentina and Brazil as a cornerstone of South American integration and a factor for progress, development and regional stability

Mercosur is undergoing difficult times, as the governments of its other two members, Uruguay and Paraguay, had hinted at seeking unilateral free trade agreements with the United States.

Mercopress – www.mercopress.com


  • Show Comments (3)

  • Guest

    it\’s been happening for decades!!
    BRAZILIANS have been screwing brazilians for decades!! It’s not the U.S., nor how this country was settled 500 years ago by the Portuguese!!! Just a couple of the thousand excuses Brasileiros use for their situation. Until these people not only realize the true problem, but have the fortitude to do something about it, they have no one to blame but THEMSELVES. I would like to say “wake up and smell the coffee”, but I know that’s difficult when the ideology of “keep them barefoot and ignorant” is the biggest success the brazilian government has and has had. Much more so than, “Fome Zero”, or “Agua para todos”, or “Luz para todos”!!!

    The “people in charge” here are scared to death of what will happen when the masses get educated, and only hope it happens after they’re long gone. I feel quite sure that if/when it happens, you’ll see politicians dropping like flies!

  • Guest

    Brazilian legilsators pay is
    annual base : Reais 192’705.-
    PLUS :
    – Monthly housing reallowance :Reais 3000.-
    – Monthly travel allowances : Reais 10’000.-
    – Bonus
    – Entertainment and “entertainments” costs reimbursed.

    Brazilian lawmakers are paid more than legislators in the U.S, U.K. and Spain, just to name a few.

    Brazilian citizens should not ask where their tax money go : they should know !

  • Guest

    Finally the truth !
    Brazil is predatory in many respects and the headline article should not be with the word : seems !

    Nobody in Mercosur is pleased with Brazil, is more appropriate.

    Brazil wants to impose and dictate their views to the whole word, developed and developing.

    They want to conquer the world and impose what they have done in their own country :
    injustice, hunger, impunity, poverty, lack of education and healthcare, wealth inequality !

    Brazilian legislators just took their 2005 bonus check : 86 times the minimum salary.
    This is just the bonus for having done nothing during 2 months of special sessions, but being in the beach or in their
    palatial residences during Christmas.

    In fact Brazilian legislators are paid more monthly than U.S. legislators :

    Their BASE monthly pay and perks is US$ 18550.- (yes US$ not reais) compared to US$
    12649.- for U.S. legislators !!!!

    Despite the fact that GDP per capita in Brazil is a tiny fraction of the U.S. !!!!

    And nothing is yet added for what brazilian legislators “earn” via corruption and vote buying.

    The Brazilian government earmarks about half of its annual budget on salaries, pensions and perks.
    When you add the interests that they pay, very little remains for the brazilian society.

    This very little part shall be further reduced with all the corruption money taken away by state corporations and agencies, obviously not accounted for.

    Results : very very very little remains for education, social inclusion, infrastructure, healthcare, low costs housing.

    But then Brazil is criticizing and accuses the developed nations of being responsible of their poverty.

    NOOOOOO ! Just reduce the wealth inequality in your own country and poverty and hunger will dissapear.

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