MercoPress. South Atlantic News Agency

Mercosur forum on new international financial architecture

Mercosur headquaters in Montevideo

The global financial crunch, rapidly becoming a threatening full fledged international recession will be addressed Monday in Montevideo, Uruguay by Mercosur leaders.

The meeting has been convened by the President of the block's Standing Representatives, Carlos "Chacho" Alvarez, the regional Parliament and the Consulting and Political Concertation Forum. "We need to emphasize on the possible alternatives that could emerge from the region to help with the draft for a new international financial architecture", said Alvarez. The president of the Mercosur parliament, Florisvaldo Rosinha said that "even when it's true the crisis was triggered by problems in the US financial system, the fact is that its consequences have spread to the rest of the world". Although Mercosur members' financial systems are considered to be healthier and stronger than in the previous crisis (Brazil, 1999; Argentina 2001; Uruguay, 2002), with abundant international reserves, the impact on the real economy could be serious. Most Mercosur countries exports have a significant component of commodities with prices, which in the last few months have collapsed, threatening trade surpluses and a general slowdown of their economies. Mercosur full members (Argentina, Brazil, Paraguay and Uruguay) are leading world exporters of cereals, oil seeds, beef and minerals.