For Mercosur, Bolivia's Accession May Bring More Headaches Than Benefits

Given its small market, Bolivia's accession to Mercosur as a permanent member is unlikely to bring much in terms of economic gain to the South American trade bloc, and may result in internal disputes and challenges if Bolivia's political situation and environmental record worsen in the coming years. On Dec. 7, Brazilian President Luiz Inacio Lula da Silva signed Bolivia's ratification protocol at the Common Market of the South (Mercosur) leaders summit in Rio de Janeiro, formally welcoming the country into the trading bloc as a full member. Bolivia will gain access to all participation rights within the bloc and will have four years to gradually adopt and integrate Mercosur's trade regulations, such as Mercosur's Common Nomenclature, a coding system to harmonize the description of tradable goods, and its Common External Tariff....