ASSESSMENTS

The Moment for Mercosur's Trade Agenda Is Now

Jul 25, 2018 | 09:00 GMT

In the past two years, Mercosur reached a consensus to move toward greater trade liberalization and started pursuing free trade agreements with a number of countries and economic blocs.

In the past two years, Mercosur reached a consensus to move toward greater trade liberalization and started pursuing free trade agreements with a number of countries and economic blocs.

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Highlights

  • Mercosur's window of opportunity to conclude free trade negotiations is closing because of Brazil's presidential election in October and Argentinian President Mauricio Macri's declining political capital.
  • Free trade negotiations with the European Union and Pacific Alliance are near the finish line. In the case of the European Union, however, there are a few key sticking points that could stall the talks once again.
  • Mercosur's free trade negotiations with the European Free Trade Association, South Korea, Japan, China, Canada and the Association of Southeast Asian Nations will not be finished by the end of the year and thus are the most vulnerable to disruption.

The window of opportunity for the Common Market of the South to conclude free trade negotiations is closing. For the past two years, Mercosur -- as the South American customs union comprised of full members Argentina, Brazil, Uruguay and Paraguay is commonly known -- has been pursuing an ambitious trade agenda that includes negotiations with the European Union, European Free Trade Association, Pacific Alliance, Canada, South Korea and Japan. During this period, Mercosur also has held exploratory trade talks with China and the Association of Southeast Asian Nations (ASEAN). However, Brazil's October presidential election coupled with Argentinian President Mauricio Macri's declining political capital will prevent Mercosur from concluding some free trade negotiations, especially those such as the talks with South Korea, ASEAN, Japan and China that are more vulnerable to tightening deadlines caused by political uncertainties....

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