MercoPress. South Atlantic News Agency

Brazil after more “discipline”

Brazil is determined to exercise the full weight of its political and economic strength in Mercosur during the coming six months with the purpose of a more effective decision making system and by insisting that joint trade talks with third countries are the only viable mechanism.

Brazil received the Mercosur chair from Argentina during the Buenos Aires summit, and according to Uruguayan analysts until the end of 2002 will try to impose a voting system more in line with its prowess and is determined to "discipline foreign links to ensure that Mercosur effectively becomes a trade coalition with bargaining power".

Mercosur members, including Brazil occasionally resort to bilateral trade agreements in spite of Mercosur regulations, arguing they ultimately benefit the whole block. Brazil also is interested in a more operational customs union, particularly inwards.

"Brazilian diplomacy is taking advantage of the international situation and is pressing other members to recognize its hegemonic condition", indicated Neil Furtado.

However analysts also point out that the policy outlined by president Fernando Cardoso will not necessarily be continued after the October presidential elections since the leading candidates are not very enthusiastic about Mercosur.

A close aide of Mr. Inacio Lula da Silva who leads the polls when asked about Mercosur replied that "if Argentina, Uruguay and Paraguay are determined to continue with Brazil, great; if not Brazil will have to look for another alternative".

Runner up Mr. Jose Serra and the ruling coalition's candidate is more direct. Mr. Serra proposes that Mercosur be downgraded and "Brazil negotiates autonomous free trade agreements".

A neutral observer of the Buenos Aires summit said that in their speeches, Brazil made "propositions"; Argentina demanded members to honor agreements; Uruguay said it was time for "reflection" and Paraguay "requested assistance", that gives an idea of the process the block is undergoing.

The Brazilian press identifies Uruguay as the "grumpy dwarf" of Mercosur and Paraguay as the "ever pleading help" member.