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Montevideo, January 17th 2019 - 04:56 UTC

Mercosur is a ‘success’; intra-trade has grown at double the world rate

Saturday, August 30th 2014 - 07:00 UTC
Full article 10 comments
Ramalho insists that despite the bad press, Mercosur is advancing and now extends from Patagonia to the Caribbean     Ramalho insists that despite the bad press, Mercosur is advancing and now extends from Patagonia to the Caribbean

Mercosur is a success, intra-trade has expanded at double the rate of world trade and despite all the bad press, the block is advancing on other fields such as social affairs and citizenship, according to Ivan Ramalho, Mercosur's High Representative, who is a former Brazilian deputy minister of trade and development issues.

 “There has been praise and criticism for Mercosur, but we are certainly not paralyzed as the impression delivered by the media: besides the incorporation of Venezuela, Bolivia is in the process of joining and Guyana and Suriname are associate members. Yes, small economies but very much integrated to the north of South America, and in practical terms means Mercosur now extends from Patagonia to the Caribbean”, emphasized Ramalho.

He added that Mercosur has trade accords with members of the Pacific Alliance (Chile, Colombia and Peru), and with Ecuador which have a 20bn dollars bilateral trade with Mercosur members.

“So contrary to belief Mercosur is clearly growing with trade among the countries that make it up close to 60bn dollars, and trade has been expanding at double the world rate, and we are possibly the fourth/fifth largest economic space, which I would define as a success”, insisted the Mercosur representative.

Ramalho considered that as a trade and investments project Mercosur is consolidated and now must move to other fields that make to social affairs and a common citizenship: free movement of people so they can work in other countries of the block and their contributions will add up for their retirement and pensions.

“Mercosur has boosted manufacturing, goods with added value, which means more factories, more jobs, better paid jobs, and not the simple sale of non processed commodities. Besides despite the difference in size and potential of the different members' economies we created the Structural Convergence Fund to support the smaller economies with soft loans, which again means the group, despite asymmetries is advancing and moving ahead”.

Finally Ramalho underlined that the new geopolitical Mercosur from Patagonia to the Caribbean has a GDP equivalent to 85% of South America's, a population of 260 million and an extraordinary growing middle class consumers market.

Top Comments

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  • ChrisR

    This guy is easily pleased if he thinks the commie confederation is worth 'saving'.

    Aug 30th, 2014 - 11:12 am 0
  • GeoffWard2

    If Ramalho thinks this is 'success' he fails to see the big picture;
    the last 13 years could have been massively better,
    with Brasil in particular being a significant world player in the global economy.

    Aug 30th, 2014 - 11:42 am 0
  • Conqueror

    It's all hype for the masses. The mercosur “thing” is an unmitigated disaster. Not surprising with argieland involved. Let's look at “mercosur”. Common Market of the South. Except that it isn't because every “member” has its little caveats. What about the “political dimension”? Why does a trade organisation need a political dimension? Isn't “unasur” enough? Could it be because argieland wants as many bites at the cherry as it can get? What, exactly, did Paraguay's internal affairs have to do with a trade organisation? Oops, sorry, there's the “democratic” clause. Did Paraguay's internal affairs impinge on mercosur? No. But argieland wanted to show Paraguay where the power was. Who got bullied into agreeing? Weak-kneed, ass licking Mujica. Of course, Mujica's less relevant now. Cue Mad Urine, the bus driver. Followed by Morales, the immoral. And argieland got unasur to follow mercosur's lead. Tail wagging dog, anyone? Of course, democratic nations are excluded from unasur.

    And look, social affairs and common citizenship. How to interfere in the affairs of every member country. Brazil is no longer a “force”. The “evil axis” is argieland-Venezuela. Both economic disaster areas. Both lie to and force the population. Both “interpret” and alter laws as it suits. Couldn't they have been honest enough to call it the nazi reich of the south? How are the “villas” and “favelas” distinguishable from prison camps?

    The most important thing is that the EU should not legitimise these regimes by signing trade accords. Let them trade with China, Iran, North Korea and Russia. Aren't there sanctions on Iran, North Korea and Russia? Then we can hit two targets at the same time. Cripple latam and make argieland pay its debts. Make it obvious that Brazil is nothing. Lose Uruguay. Watch Venezuela implode. Start again with “proper” people!

    Aug 30th, 2014 - 02:02 pm 0
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