Sky’s Not Falling over Mercosur, Says Brazilian Minister

Following his encounter with the Uruguayan Foreign Minister, Reinaldo Gargano, the Brazilian Minister of Foreign Relations, Celso Amorim, said that the Mercosur "is not about to fall apart," as many people are claiming.

To the contrary, he pointed out, "I see the Mercosur growing and our export bases breaking one record after another."

He acknowledged, however, that the Mercosur has been less beneficial to the smaller economies, such as Paraguay’s, than it could have been. And he asserted that the bloc will only attain its real goals – such as "encouraging true integration" – when the member countries stop placing exclusive priority on the tariff issue.

"The tariff issue is very important, since it is what allows us to negotiate with other countries, but we must also find ways to stimulate a genuine integration of productive chains, in terms of both supply and demand," he said.

In a press conference the Uruguayan chancellor also emphasized the Mercosur’s importance for deepening and developing commercial, social, and political relations among the countries of South America.

Regarding a possible bilateral negotiation between Uruguay and the United States, Gargano commented that it would not be "appropriate" for his country.

The rules governing an economic bloc, in this case, the Mercosur, to which Uruguay belongs, determine that trade negotiations must involve all the member countries instead of being conducted separately.

On this matter Amorim affirmed that bilateral agreements offer only immediate advantages, not long-term ones, as the Mercosur does. "The Mercosur must maintain its unity, because that is the source of its negotiating strength with the large economies. In the short run it is frequently tempting to engage in a small-scale negotiation that offers more advantages. But we know that in the long run integration is much better," he argued.

At their meeting Thursday, February 2, the chancellors also discussed the dispute between Uruguay and Argentina provoked by two cellulose factories the Uruguayan government wants to build on the banks of the Uruguay River, which forms the border between the two countries.

Argentina alleges that the two factories will pollute the river. Uruguay, for its part, insists that the project meets international standards and will bring jobs and investments to the entire region.

Amorim recalled that this matter has caused concern in Brazil, since both Argentina and Uruguay are members of the Mercosur. He said that Brazil is willing to help, and he hopes the impasse will be resolved through negotiations, "in order to find a solution that is adequate from the standpoint of both countries."

Agência Brasil

Tags:

You May Also Like

Brazil’s Quota Foes Conveniently Forget US Affirmative Action’s 40-Year Success

Late last month, in the same week when the Federal University of Rio Grande ...

The Best Pages of Our Lives

Which are the best books produced by the Brazilian literature this century? A panel ...

Brazil Creates World’s Third Largest Bourse, the US$ 20 Billion BM&F Bovespa

Cade (Administrative Council for Economic Defense), the Brazilian antitrust authority, approved the merger between ...

US Gets Its Own Taste of Brazilian Premium and Expensive Cachaça

Americans will now be able to taste a luxurious cachaça from Brazil. The product, ...

US Helps Brazilian Police Arrest 43 from Visa Gang That Sent People to the US

Brazil’s Federal Police (PF) operating in the southeasterb Brazilian states of São Paulo and ...

4% or 146,000 Workers in Brazil’s Mines Are Children

The World Day Against Child Labor, instituted in 2002 upon an initiative of the ...

Brazil Confesses Impotence Via-í -Vis Haiti

On 1 February 2005, nearly one year after the de-facto coup against Haiti’s democratically ...

Controllers Slowdown in Brazil May Bring US$ 19 Million Lawsuit by Airlines

The air transportation chaos that has been installed in Brazil the last few days ...

Brazil’s New Key Interest Rate Shows Central Bank’s Arrogance, Says Industry Federation

In a note on the decision by the Monetary Policy Committee (COPOM) of Brazil’s ...

With US$ 6.5 Billion in Foreign Investment Brazil Breaks Record

According to the Brazilian Central Bank (BC), foreign direct investment (FDI) in Brazil should ...