Despite complaints of Brazilian entrepreneurs, the Presidents of Brazil, Luiz Inácio Lula da Silva, and Argentina, Néstor Kirchner, consider that the bilateral safeguard agreement between both countries, called the Competition Safeguards Mechanism (MAC), strengthens the Mercosur.
According to a note issued by the Press Service of the Brazilian Presidency, Kirchner called Lula to celebrate the success of the negotiations within the estimated deadline (January 31st).
Kirchner said that the agreement represents a message of optimism for the future of the Mercosur. Lula expressed his satisfaction with both countries demonstration of improvement in the political, economic and commercial arenas.
Lula reiterated that the progress in the relationship between the two countries contributes for the integration of South America.
The safeguard mechanism had been proposed by Argentina in 2004. The country affirms it needs such a tool to protect its local industry from an "invasion" of Brazilian products.