MercoPress. South Atlantic News Agency
European Parliament stresses ‘desirability’ of EU/Mercosur balanced trade agreement
Current trade negotiations between the European Union and Mercosur dominated the opening speeches at of Eurolat (Europe/Latin America Parliaments) Fifth Plenary Session which is taking place in Montevideo. Read full article
Comments
Disclaimer & comment rulesEUROLAT. What a waste of space! Is there any crap these tossers won't come out with? Mercosur. Who needs it?
May 18th, 2011 - 06:02 pm - Link - Report abuse 0“Mercosur. Who needs it?”
May 18th, 2011 - 11:25 pm - Link - Report abuse 0YOU need it, obviously. ;-)
...typhony
The Co-President is Spanish, which explains a lot. This deal will never get done !
May 19th, 2011 - 01:07 am - Link - Report abuse 0Typhoon, if Europe didn't want to export its way out of the stagnation swamp, there would be currently no negotiation between the two blocs.
May 19th, 2011 - 01:08 am - Link - Report abuse 0On a side note: isn't weird for a Mercosur-centered media outlet that it decides to report on the Mercosur-EU negotiates under the European Union's perspective? I always read in here texts on what are the opinions of European leaders and groups - trade unions, farming groups, trade or finances ministers - about an agreement with Mercosur. But nothing ever said by Mercosur politicians and groups on this subject is published on Mercopress.
Forgetit,
May 19th, 2011 - 08:49 pm - Link - Report abuse 0I think Mercosur politicians are keeping their heads down. It's not that they haven't been asked.
In any case, this is a two-way press agency.
This deal is massively important for both 'sides'.
If it can't be made to happen, the EU will develop bigger and better separate bi-laterals with Central America, Colombia, Peru, and - in particular - Brasil and Chile.
Argentina will be left out in the cold for permanent trade flows, though it will be free to develop such sales as it can elsewhere.
The outcome will be the destruction of Mercosur - and probably CAN, with a new S.A. trading creation based on Chile and Brasil.
My prediction - and brought about by Argentina. (The EU farming lobby will be whipped into line).
GeoffW.,
May 19th, 2011 - 09:57 pm - Link - Report abuse 0The EU cannot forge an agreement with BR and leave ARG “in the cold.” Mercosur isn't just a free trade agreement - it is a customs union. As such, one Mercosur country can not sign a trade agreement with a non-Mercosur nation if the rest of the bloc doesn't join in.
That the agreement could benefit both blocs may be true, but that's specially so of the EU. Mercosur countries are already growing at satisfactory levels led by domestic demand. In the EU, on the other hand, demand is stagnated even though the ECB has maintained record low interest rates. As such, to promote job creation without indebting themselves even more, their net exports need to grow.
As for this - that Mercopress “is a two-way press agency” - I don't know what that's supposed to mean. In spite of the disproportionate attention Mercopress gives to the FI, it's a still South American-focused news agency. It claims to based in Uruguay. It even derived its name from the Mercosur bloc. As for Europe, the only country one often reads about in here is the UK. I don't see anything on France and Germany, the other relevant European Union nations.
Perhaps this can explain it all: the fact that this South America-based news group gives such a disproportionate attention to the FI and the UK indicates that Mercopress is actually an arm of British political and economic interests. That's why we often read so much about EU groups' attitudes toward the agreement with Mercosur.
“The EU cannot forge an agreement with BR and leave ARG “in the cold.” Mercosur isn't just a free trade agreement - it is a customs union. As such, one Mercosur country can not sign a trade agreement with a non-Mercosur nation if the rest of the bloc doesn't join in.”
May 20th, 2011 - 12:29 am - Link - Report abuse 0...................
Just see how long the 'customs union' holds the line if any partner thinks its interests are being blocked by one other member.
Uruguay will probably be the one to break-out, protected economically and defensively by Brasil.
Paraguay will have to chose - it may try to mediate - but it will side with the most powerful/economically most advantagous to its own interests.
Argentina risks being bounced out of the organisation unless it starts 'playing for the team'.
@GeoffW.
May 20th, 2011 - 05:21 am - Link - Report abuse 0Mercosur is already about 20 years old. Something more serious than the current crisis between BR and ARG will have to happen to make the Mercosur countries part their ways. And you should expect BR to fight to keep the bloc stable. Considering that BR has a trade surplus on ARG, Mercosur is even more important for us than to them.
As for Europe, Mercopress itself has shown the extent to which certain businesses interests in Europe are organizing against negotiations with BR. So you don't expect BR to leave Mercosur to embrace a shaky, uncertain agreement with Europe.
@GeoffWard
May 20th, 2011 - 11:55 am - Link - Report abuse 0Playing the typical colonialist trick divide and then conquer ah!
Are you European? If so you know that EU member always are fighting for any stupid issue involving interest. So what?
We are not enthusiastic with an agreement with EU now, we want to expand first Mercosur/Mercosul as Europe had done with her own market.
And don’t be confused even if Argies, Uruguayan, Brazilians and Paraguayans kick the other member @ss don’t dream with that we will not kick yours first.
It is quite simple from my point of view we are not in a hurry we are growing and Europe is declining so waiting will be better for the block to obtain a better strong position to negotiate in the future when we reach our full potential.
In 2 years EU will accept any condition because financial, debts and sovereign debt crisis will burn as ever. Stagnation and debt crisis will be the words most used in Europe, trust me.
We (Mercos) have a big market still to develop around here from Mexico to Bennies land ha ha.
We are a potential market of 500 millions customers, plenty of natural resources almost
infinite source of commodities, young Smarts haha.
Why we should need Europe now? We don’t. They need us more to sell their products.
What will buy Europe from us? grain? Meat?
If European business wants to sell their products here they should open a local factory in any of the counties members I like more this way and compete with locals in same conditions. We have a lot empty space around.
Recipe learned in Europe : )
And remember you are who cannot dock in Brazil or Uruguay ports we do and they do and we play football all together practicing to kick your @ss in the next world cup. hah ahaaaaaaaa
Yes, I will enjoy it when my country, Brasil, kicks your ass in the next World Cup.
May 20th, 2011 - 01:42 pm - Link - Report abuse 0You make one or two fair points about the differential need for trade between the blocs, but this is a very narrow window of opportunity for South America to assert itself and develop a first world profile - and the window will close so quickly and your/our scope to develop national/SA indiginous first-world industries will be gone. Don't think that allowing the whole world to build their industries in our land is the best and only way to develop.
We cannot wait for 'time and tide' to sort out Argentina's internal problems; this nation is seriously holding up the economic advancement of itself and much of South America.
@GeoffWard
May 21st, 2011 - 08:09 am - Link - Report abuse 0You confuse me, you say in another post that you were British and now that you are Brazilian are you both? Anyway doesn’t matter.
“We cannot wait for 'time and tide' to sort out Argentina's internal problems; this nation is seriously holding up the economic advancement of itself and much of South America.”
Really? so go for it who is going to stop you? and good luck we will see again in 10 years time. ha ha you are not Brazialian : )
Nico,
May 21st, 2011 - 11:42 am - Link - Report abuse 0you have made some good points elsewhere but they were lost in the pathology of your presentation - you were criticised on your presentation and people failed to see the little gems of insight hidden within.
I repeat, for your consideration:
'this is a very narrow window of opportunity for South America to assert itself and develop a first world profile - and the window will close so quickly and your/our scope to develop national/SA indiginous first-world industries will be gone.
Don't think that allowing the whole world to build their industries in our lands is the best and only way to develop. '
@GeoffWard
May 21st, 2011 - 02:42 pm - Link - Report abuse 0“Don't think that allowing the whole world to build their industries in our lands is the best and only way to develop. '”
Nope I say that is better to make them to move here using trade barriers like in the car industry than open our market to end up importing cars from Europe for example.
All developed countries have industries from all over the world what is also really important is that the supply change is build at home.
For example Fiat if has not trade barrier they will prefers to exports cars made in Turing than in Brazil or Argentina. But as both countries have imposed high barriers they made an investment to make cars here.
Slowly all parts are make here, you have a supply change and in the future any local company can try to make cars for example when you have local suppliers.
You cannot have a 100% indigenous industries as you cannot have 100% foreigner industries balance is right. To have in control the beast. Haha
: )
Nico, you're missing my argument.
May 21st, 2011 - 04:15 pm - Link - Report abuse 0South America or Mercosur or Brasil is big enough to have its **own** car industry and its own heavy vehicle/heavy build industry. But if the SA/M/B market is swamped with excess of foreign US/Japan/EU marques there will never be market entry for SA's/M's/B's own companies.
Yes, there will be jobs for locals, but the after-tax profit will (and does) stream out of SA.
For instance - there is a crying need for continent-wide, large & standardardised road-laying vehicles, mechanised cutting, base-laying, compacting, surface laying, finishing.
The technology is well known, it's not rocket-science, it's well deployed elsewhere, it's the the link that makes the continent 'work'.
Caterpillar (the US giant company) could do it, if asked, but why not do it ourselves?
The continent has to make the leapfrog over the old Chinese Great Leap Forward model of a million 'coolies' each with a spade and a basket, to machine-based model.
Each continent/nation does not have to re-invent its own wheels or go through each classic stage of an industrial revolution.
Modern China is **jumping** from third world to first world in one leap by seeing how it was done as state of the art elsewhere and invoking state of the art at home.
It was able to do this because of the millions of highly educated Chinese it had trained up to make the leap.
Mercosur's motto should be 'Do a China here in SA; don't let China do it to you'.
Mercosur is both big enough and homogeneous enough to make it happen.
But it has to WANT TO DO IT.
@GeoffWard
May 22nd, 2011 - 10:37 am - Link - Report abuse 0Hey mate don't jump to the pool if you are not sure there is water.
I do agree with you that anything made in EU or US can be made here there is not a tech barrier.
You are not taking into account a lots of things . Let’s see the car industry
1- Capital, in the case that you want to make a new car model you need 200/400 millions dollars for:
a) Concept design CAD/ engineering, etc.
b) No functional Sample model to test it in wind tunnel aerodynamics involving CNC robotic engineering, etc.
c) A full functional model sample made by hand to test for errors and concept design parts.
d) If everything is ok (Never is that simple) you pass to the process of manufacturing in scale/serie what involves the making of matrix Models to stamp parts, CNC or forging models for Engines, Box gears, etc. Do you know how much that it cost?
e) Suppliers, metal-mechanic industries able to make your custom parts in steel, also in plastic, brakes, hydraulic systems, etc, etc.
Total 200/400 m USD.
2- You need a factory to assemble all parts, robots, workers, etc, etc lets say another 100/400 millions.
3- Marketing what you will do with you cars if none knows it? More $$$.
4- You need to develop a distribution chain (car sell agencies) willing to sell your product.
Resuming if you want to make cars and you are not already in the business you will need 500/800 M USD to start from scratches.
And I’m sure that if you have that capital you will not risk it to enter in such kind of business risking to end up broke.
This is called “business entry barrier” or whatever in English so better is to be in the supplier chain business you can sell your stuff to any factory and to any part of the world once you get big enough.
Example in other business ACER PC manufacture, before was in the supplier chain making motherboards. When the US PC manufactures desired to dump ACER as supplier the company easy starts to make Notebooks and started to compete with her former customers.
: )
Thanks Nico,
May 22nd, 2011 - 01:58 pm - Link - Report abuse 0I am familiar with the processes.
I was in Malaysia 25 years ago when they established their 2020 Plan. This involved the development of a home-grown vehicle industry.
I have seen this happen in Malaysia, and in India and South Korea.
It can be done, and it is the key to the lock of first world nationhood.
The planning, the commitment and the funding are part of the process, also the protection of the home marketplace to allow the embryonic companies to grow to adulthood. This, of course, restricts overseas companies from dominating the whole market.
If the Malaysians can do it, then the South Americans - with the will and with nearly 1/4 of the world car market within their trading blocs - should have this ability also.
Courage, mon brave!
I went to South East Asia in few times, Malesian Proton car had been composed by Toyota and still sidefirm of it.
May 23rd, 2011 - 07:35 pm - Link - Report abuse 0You must have severity to realize these aims as example of the Koreans.
Spain couldn't it on Seat.
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