MercoPress. South Atlantic News Agency

Brazil warns Uruguay on Pacific Alliance plans: Mercosur can only act as ‘a block’

Ambassador Ivan Ramalho: ‘we must remain united’

Mercosur must negotiate any possible incorporation to the Alliance of the Pacific “as a block” since it is important that its member countries remain ‘united’ and respect the current charter, said the Mercosur High Representative, Ambassador Ivan Ramalho from Brazil.

“Only the block as a whole can make a deal as it is set out in the Mercosur rules, because we are a customs’ union. We must negotiate as a block, I personally think this is the case and that we must remain united”, said Ramalho during an interview with El Pais from Montevideo when he was asked specifically about the issue.

Mercosur was born in 1991 and is made up of five full members, Argentina, Brazil, Uruguay, Paraguay (suspended) and Venezuela that was finally incorporated a year ago in special circumstances. The Alliance of the Pacific or the ‘gang of four’ includes Chile, Peru, Colombia and Mexico and contrary to its Atlantic cousins support the private sector, open markets, foreign investment and less government involvement in the economies.

The interview was published a day after Paraguay was admitted as the tenth observer of the Alliance of the Pacific and Uruguayan Vice-president Danilo Astori said his country, already an observer, is interested in becoming a full member of the Pacific group.

Astori who attended the Cali summit said Uruguay complies with one of the main conditions for joining and that is having trade agreements with the four alliance members.

“It is perfectly possible for Mercosur to reach agreements with other countries, other regions, other markets, as we have been trying with New Zealand and with Australia”, said Ramalho.

He added it was important “to remain united so that the benefits that the block can achieve are extensive to all members, not only for a few. My personal opinion is that we maintain the unity (of Mercosur)”.

The ‘gang of four’ with only one year since founded and which represent 50% of all Latinamerica’s foreign trade, in this last summit in Colombia agreed to the elimination of all tariffs among the four countries, to promote trade, and with a timetable that is expected to become operational as of next July first in several stages.

Uruguay and Paraguay, the junior members of Mercosur are increasingly disenchanted with the workings of Mercosur because of Argentina and Brazil protectionist policies which also limit their access to those markets. The junior members are also particularly interested in the cooperation and free trade agreement with the European Union which has been stalled since 1999, despite some recent efforts to revive the accord.