15 Years of Mercosur: Brazil and Argentina Still Don’t Get Along

The vice-president of the Brazilian Foreign Trade Association, José Augusto Castro, gave his evaluation this Tuesday, April 4, of the Mercosur, the bloc formed by Argentina, Paraguay, Uruguay, and Brazil.

In Castro’s opinion, the group is still far from the envisioned trade integration, as well as experiencing an "existential crisis typical for its age."

"We might say that, after 15 years, the Mercosur is behaving like an adolescent. It doesn’t know whether it’s a customs union, which was the original objective, or simply a free trade area. The former would mean the four countries’ having the same kind of duties in international trade operations. In the latter they would have individual duty schedules," he explains.

"The goal was for us to be a customs union, but we act more like a free trade area, since each country, particularly Argentina, adopts specific duties that blow holes in the agreement we have at present," he observes.

Despite the crisis, Castro goes on to say, trade among the Mercosur countries experienced significant growth. He points out that this growth was compromised by political interests.

"In the beginning there was strong commercial growth. But, as time passed, the Mercosur began to be used politically. Brazil itself used the Mercosur as a way to gain political strength vis-à-vis the United States in the negotiations over the FTAA (Free Trade Area of the Americas). There was a deviation from the original goals of the Mercosur, but, in commercial terms, it was very good," he judges.

In Castro’s view, the relationship between Brazil and Argentina is the most important and delicate aspect of the bloc. "Brazil and Argentina refuse to be complementary to each other. Both want to be the exporter of finished goods. That causes difficulties between the two," he explains.

Castro has reservations about Venezuela’s entry into the bloc. "Venezuela’s entry will add little. Despite having a lot of petroleum, Venezuela’s political situation is complicated, making it more difficult to reach agreements," he remarked.

Brazil and Honduras

Brazilian President Luiz Inácio Lula da Silva, during a meeting with Honduran President José Manuel Zelaya Rosales, Monday, April 3, expressed Brazilian interest in intensifying trade relations with Honduras, as well as diversifying relations with Central America and the Caribbean.

Lula specially cited Brazilian willingness to continue cooperation and knowledge transfer in the area of biofuel, particularly ethanol.

Zelaya agreed with Lula and talked about a possible cooperation also in AIDS prevention and control initiatives. Honduras President also suggested intensification of oil exploration projects, through the Brazilian oil company, Petrobras, as well as projects in the areas of defense and sports.

Lula suggested that all subjects discussed during the meeting become part of a future agenda between the two countries.

Agência Brasil

Tags:

You May Also Like

Aladdin, Ali Baba and the Building of the Brazilian Character

Brazilian Rafael Maia was not quite certain of where the Arab countries were located ...

Brazil Burns Native Vegetation for Firewood Accelerating Desertification

Brazil’s Ministry of Environment (MMA) launched the primer, "Learning about the PAN-Brasil: the National ...

Brazilian Industry’s Confidence in Economy Falls Again to a 3-Year Low

Brazil’s Industrial Entrepreneur’s Confidence Index (Icei), announced yesterday, July 19, by the National Confederation ...

Developed in Brazil Soybean Rust Warner Is on the Web

Syngenta Crop Protection yesterday launched its Syntinel RustTracker system, an early-warning Web-based system that ...

In Intimidation War Against Press Brazilian Church Loses 58 Court Cases

Every lawsuit that has been brought by members of the Universal Church (Igreja Universal ...

Enough of Good News, Brazil! Time to Build a Fairer Society Now

A number of events has projected Brazil into the headlines of international news, besides ...

Low Inflation in the US Gives Brazilian Stocks a Boost

Latin American stocks were mixed to higher, with Brazilian and Mexican shares climbing on ...

Brazil Scene: Letters from Prison

Tom Phillipsby: Tom Phillips is a British journalist living in Rio de Janeiro. He ...

Boosting Consumption Won’t Work for Brazil This Time, Says Expert

For the professor of the Economics School at the Getúlio Vargas Foundation (FGV) in ...

Brazil’s Furniture Union Puts 2006 Production on Sale

Unimóveis, the Furniture Worker Union of the Brazilian northern state of Amapá is promoting ...