MercoPress. South Atlantic News Agency
Mercosur lacks discipline and has become a 'straitjacket' for trade negotiations
Mercosur must discipline and return to its origin as a customs union since it has become a 'straitjacket' for negotiations with other regional blocks, according to Lia Valls, foreign trade coordinator at the Brazilian Economics Institute belonging to the prestigious thinktank Getulio Vargas foundation. Read full article
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Disclaimer & comment rulesUh, just an ignorant suggestion but perhaps Brazil, Paraguay and Uruguay could do far better negotiating OUTSIDE Mercosur. There are SEVERAL countries that would be very happy to negotiate with Paraguay alone. Chile has granted free Pacific port privileges to them and yet they remain imprisoned with the stupidity of the Venezulean and Buenos Aires idiots.
Dec 10th, 2014 - 01:31 am - Link - Report abuse 0The reality is that mercosur is only of 'benefit' to one country, argieland. It enables argieland to feel important as one of the 'leaders'. It's supposed to be a customs union. That's all. But, bit by bit, argieland has pushed it along a path of political power. What is the purpose of the Mercosur Parliament? A customs union doesn't need a parliament. Foreign and trade ministers get together, work out what needs to be done, take proposals back to governments and then sign up to agreements. Why do the four full members need 18 MPs each? Was there an unused building they needed to fill. When has the Parliament told a member that it can't do something? When Paraguay was illegally suspended, where was the Parliament? It was all agreed between three presidents to further argieland's political power. How does argieland make things better? It justs drags everyone backwards for its own benefit. Unfortunately, the EU has made the mistake of entering negotiations with it. That gives it a certain amount of credibility. But much of the EU is just as bad as argieland. The EU likes to claim that it has a customer population of around 500 million. Mercosur says it has 275.5 million. So what? It isn't customers that are needed. It's manufacturers, producers, growers. The Canadians, Chinese, Russians and the US aren't members of either. Most members of the EU, and others, joined it for what they could get out, not what they could put in. That takes care of most of eastern Europe. And argieland is much the same. Because it wants power. A customs union isn't about power, it's about co-operation. And where is mercosur 'progressing'? It now has a two strong allies, argieland and Venezuela, with similar aims and similar incompetence. Time was that argieland and Venezuela were progressive and wealthy. Argieland's economy was mostly run by Brits. Then it got Peron. And, in a similar fashion, Venezuela got Chavez. And they both hit the skids. Mercosur is going with them!
Dec 10th, 2014 - 11:45 am - Link - Report abuse 0@1 No full member of Mercosur can sign a FTA outside Mercosur, those are the rules which every full member agreed. So Brazil, Paraguay and Uruguay would need to change the rules (but they would need the votes of Argentina and Venezuela) or leave.
Dec 10th, 2014 - 02:18 pm - Link - Report abuse 03 Magnus
Dec 10th, 2014 - 03:46 pm - Link - Report abuse 0How long do you think it will be before they leave?
The problem with the Mercosur is exactly as spelled out by Lia Valls of the FGV (Getulio Vargas Foundation), and the solution is for Brazil to extricate itself from the mess....there has to be a legal provision to allow a member to leave. That's what Brazil should do, and then sign bilateral agreements with countries that are serious....those that have something to offer....but under the present PT- backed government, which loves CFK and the MADman from VZ, this is unlikely to happen anytime soon.
Dec 10th, 2014 - 05:35 pm - Link - Report abuse 0It seems like the last year, Brazil and even Dilma have felt economically painted into a corner by Argentina and Mercosur.
Dec 11th, 2014 - 12:31 am - Link - Report abuse 0Dilma is under a lot more pressure now, and CFK is doing her no favours.
Yes these countries need to go there own way.
Dec 11th, 2014 - 03:51 am - Link - Report abuse 0But let's suppose Brazil does an FTA, it's supposed to be an opportunity for fair and free trade between the two countries making the treaty. But you can imagine Brazil, oh sorry we have the Free Trade Area of Manaus and they must be excluded, oh yeah and the poor northeast they must be protected too, oh yeah and our automobile industry too, they must be protected, oh yeah our dairy sector is out, all the farmers owning 5 cows or less must be protected etc etc etc
PT are scumbags coz they got no balls and chances are they won't move an inch, they survive on the status quo which has strangled Brazil because if change comes about the politicians will lose their cushy lives! Therefore Mercosul bollox continues.
#7 That's rather depressing. Brazilians collectively (and I know there is really no such thing) seem to veer widely between wanting to be successful and wanting to be loved, and the two things will not work together. If Brazil wants to assume the position of leadership it deserves then it will have to push on and ignore the shackles Argentina seeks to place on it to hold it back. Latin America would be a better place with a strong progressive Brazil dragging others along behind it, rather than constantly descending to the lowest common denominator.
Dec 11th, 2014 - 11:36 am - Link - Report abuse 0@8GALlamosa
Dec 11th, 2014 - 08:58 pm - Link - Report abuse 0“Depressing” ? you can say that again....the PT, 12 years ago, when Lula was elected, used the traditional 'liberal' politics to gain power...made a load of promises, all impossible to keep, but they hit the target...all the poor, who can't see further than their noses, or in this case their bellies, voted massively for the PT...based on the promise of a social programme named “Zero Hunger”, supposed to supply every needy Brazilian with 3 meals a day ...after less than a year, besides being a total failure, it was proved to be no more than source of corruption....when it fizzled out, even the PT were glad, because it was damned disgrace. The fact is that the PT's policies to stay in power are those that 'buy' the poor people's votes, giving them handouts , making them dependent, then controlling and manipulating them. Only when basic education REALLY becomes a priority in this country - which under the PT has been more rhetoric than action - will the people see that they are being treated like a bunch of sheep.
But getting back to the lack of discipline within the Mercosul, Argentina is the first to break the rules and then ask to re-negotiate whatever displeases THEM....and the PT has been just too wiiling to accomodate all this, regardless of the harm it has done to Brazil and its industrial sector. On the other hand, the protectionism has done nothing to help local industry either, and the government plays a big part in this.. Now that industrial output has been dropping for quite some time, closing 2014 with a negative result compared to 2013, because of reduced domestic consumption, as well as less exports, perhaps this will give them, and the government, a jolt. As I said before, Brazil should get out of the Mercosul and leave Argentina and VZ to their own fates.
Argentina ain't following Brazil or anyone else. We do what we want to, period.
Dec 12th, 2014 - 03:42 am - Link - Report abuse 0We've told the UK, EU, US, and others to f--ck off. We can do so to Brazil, China, and Mercosur too.
9 Jack Bauer
Dec 12th, 2014 - 06:29 am - Link - Report abuse 0“As I said before, Brazil should get out of the Mercosul and leave Argentina and VZ to their own fates.”
You've got that right!!!
:-)
@10 GiorgyPorgy
Dec 12th, 2014 - 03:20 pm - Link - Report abuse 0“Argentina ain't following Brazil or anyone else. We do what we want to, period”
Well, that is pretty obvious....you respect none of the Mercosul rules....one more reason to tell Argentina to f*ck-off !
But if you want to help that happen, please tell your darling CF to tell Dilma where to get off......that would leave us free to either kick your butts out of the Mercosul, or would prompt Brazil to leave. A win-win situation.
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