Trade Agreement South America

كتب - آخر تحديث - 19 ديسمبر 2020

Austrian MPs dealt a blow to the EU`s pioneering trade agreement with the South American economic bloc by calling for the government`s veto of the agreement. However, the Austrian industry association has backed behind the Mercosur agreement, warned against “populist scaremongering and free trade myths” and insisted that the agreement implies a commitment to the Paris climate agreement and the fight against deforestation in the Amazon. Political changes and economic challenges in Latin America could either stimulate the region`s largest trading bloc or lead to its aging. In 2004, Mercosur signed a cooperation agreement with the Andean Community Trade Bloc (CAN) and issued a Memorandum of Understanding for future negotiations on the integration of all of South America. [51] The prospect of greater political integration within the organisation, advocated by the European Union and supported by some, remains uncertain. [52] Bolivia, which was also a member of the CAN and an associate member of the Mercosur process before the start of the UNASUR process, plays a crucial role in relations, says Marion Huermann, with Bolivia traditionally seen as an intermediary between andean countries and the rest of South America. Regional integration: a key role for Bolivia Member States may have free trade zones, industrial free trade zones, export processing zones and specific customs territories, all intended to treat goods marketed or produced in these territories with different treatment than their respective customs territories. [Citation required] Danilo Astori, Vice-President of Uruguay, said that the issue of a free trade agreement with the United States needed to be addressed and that “opportunities must be created.” He also said that “every Mercosur country should have a large number of accessions. Mercosur must have a common international policy, a moderate protection agreement against third parties and, above all, agreements with other trading blocs. [47] Mercosur`s development was probably weakened by the collapse of the Argentine economy in 2001, and there have always been internal conflicts in trade policy between Brazil and Argentina, Argentina and Uruguay, Paraguay and Brazil, etc. In addition, many obstacles need to be addressed before the development of a common currency within Mercosur.

[50] Brazilian President Jair Bolsonaro said on Twitter that the agreement was historic and one of the most important trade agreements of all time. Mercosur aims to promote free trade and the smoothness of trade in goods, people and currencies. Since its inception, Mercosur`s functions have been updated and modified several times; it is currently limited to a customs union in which there is free intra-area trade and a common trade policy between Member States.