The powerful Brazilian National Confederation of Industry, CNI said that the country and its Mercosur partners will end ‘isolated’ if they don’t actively look for alternative trade accords, as is being done by other Latam countries.
“Brazil runs the risk of losing more space in its export markets if it doesn’t fully address the global challenge of looking for new partnerships in world trade”, reads an official document from the CNI.
The report then mentions a long list of trade agreements recently signed worldwide, others in discussion and concluded that Brazil and its Mercosur associates (Argentina, Paraguay, Uruguay and Venezuela) are in the “margins” of those great discussions.
CNI makes a point of underlining the Alliance of the Pacific, made up of Mexico, Colombia, Peru and Chile which already make up 35% of the Latam GDP and 3% of world trade. It also mentions Chile which has “tariff preference systems with 62 countries”; Colombia with 60 countries and Peru with “preferential access to 52 markets”.
The report indicates that all the countries mentioned have free trade agreements with the European Union and the United States and are working strongly for the Trans Pacific Partnership, TPP, which will eventually bring together, Australia, Brunei, Canada, Chile, Singapore, Japan, Malaysia, Mexico, New Zealand, Peru and Vietnam, “which represent 25% of world trade”.
CNI says that these types of agreements are part of a “world strategy to retake economic growth”, but Brazil and its Mercosur partners remain paralyzed, without any initiative to look for alternatives to expand their trade.
“It is highly significant and surprising, the absence of any South-South negotiations, which has been proclaimed as one of the great objectives of Brazilian foreign policy”.
“Brazilian industry observes with growing concern a raft of trade agreements that are on the table and the fact that the Brazilian government attends those discussions distanced from reality”, concludes CNI.