Brazil and Uruguay seek to open their economies and challenge Argentina’s agenda in Mercosur – economic, financial and economic news

A wake-up call was raised in the government when it was learned that the presidents of Brazil and Uruguay promote trade negotiations outside Mercosur, in open confrontation with the current regulatory framework of the customs union that the two countries share with Argentina and Paraguay.

This Wednesday, the Uruguayan president Luis Lacalle Pou visit knew by brasileo, Jar Bolsonaro, and discussed the proposal of make business more flexible with other countries without losing the quality of Mercosur members, which will soon be in force for 30 years.

“The next step in the modern world is flexibility so that every country, even its own, can move forward”, stressed the Uruguayan president during a press conference given with Bolsonaro before leaving the Planalto palace.

Indeed, Brazil, Uruguay seek to break negotiating pattern as a whole which has prevailed in the customs union since 2000, and which stipulates that any reduction in import tariffs can only take place with the agreement of all partners.

Argentina, however, rejects the “perforation” of the Common External Tariff (CEA), on which the rest of the partners have sought to make a general review with a view to promoting its reduction and cheaper imports, without anticipating the impact that this could have. have on the productive network.

Government prioritizes exports to emerging markets and relegates trade agreements

The “crack” opened on the future of Mercosur This will undoubtedly be a topic for the presidents to debate in a face-to-face meeting they are expected to hold on March 26, when the bloc’s 30-year celebrations are scheduled.

The government, with another agenda

This Wednesday, Alberto Fernndez held a videoconference with the Prime Minister of Portugal, Antonio Costa, acting as chairman for the time being Mercosur, while the Portuguese does so in his role as the rotating commander of the European Council.

Fernndez and Costa addressed outstanding issues to unblock the trade chapter of the strategic association agreement between Mercosur and the Unin Europea, when France it still maintains a veto on the treaty and demands clauses that guarantee better environmental standards and more animal health requirements.

At the same time, the Ministry of Foreign Affairs has summoned the ambassadors of the countries of the European Union to Buenos Aires to anticipate the agenda with which the government faces the presidency of Mercosur. Unlike the purely economic agenda of the liberal governments that govern Brazil, Paraguay and Uruguay, Argentina wants to strengthen the political and social dimension of the bloc, and for this it aspires to strengthen the integration agenda of the four countries with the most active participation. businesses, unions, universities and civil society.