Mercosur agreement Before The World Financial Crisis

The wisdom of the wise and the experience of ages may be preserved by quotations. Benjam? N Disrael? Generally considered comunidadandina.org reminds us. relations between the Andean Community and MERCOSUR integration blocs that group nine of the twelve South American countries, have experienced a rapid evolution in the prospect of starting a process of convergence that will benefit the 350 million people from their member countries. The progress is reflected in the creation of a free trade area and the development of political dialogue, which have led to reciprocal association between both blocks The first concrete step toward that goal was the signing, on April 16, 1998, of a Framework Agreement for the creation of a Free Trade Area between the Andean Community and MERCOSUR, which lays the groundwork for the formation of this extended space. Through it, states that the negotiations take place in two stages: at first, negotiate a Fixed Tariff Preferences Agreement on the basis of the historical and the second a Free Trade Agreement. Based on the guidelines set in the Framework Agreement, the Andean Community and MERCOSUR began in June 1998, negotiations for a Trade Preference Agreement.

The form of negotiation, initially from block to block (Scheme 4 +4) was changed at the suggestion of Brazil, by the whole Andean each of the countries of MERCOSUR (4 +1), while maintaining But the ultimate goal. As a result of these negotiations, Colombia, Ecuador, Peru and Venezuela signed with Brazil, August 12, 1999, an Agreement of Economic Complementation Partial Scope whereby both parties established fixed preference margins as a first step in Establishment of a Free Trade Agreement between the CAN and MERCOSUR. The MERCOSUR suffered an "acute crisis" in 1999, when there was a sharp devaluation of the Brazilian currency and the integration process had already been weakened by the loss of expectations, but "no block became unworkable" As noted Tullo Vigévani, director of the Faculty of Arts and Sciences, University Estadual Paulista.

The researcher in international relations, which accompanies the process of Latin American integration, said that an agreement adopted by MERCOSUR in 2005 established the principle of balance in trade relations within the bloc. This crisis and the devaluation could represent an opportunity to define limits on the trade imbalance, with a "broadband" of tolerance and compensatory measures for the deficit country Now the situation is more serious, with the stagnation of MERCOSUR, but all member countries and became convinced that the association between them is crucial for the development of each and "must realize the interest of all that no partner is weakened," summed Vigévani. Objective, opinions As is known, the Seventh Special Session of the Common Market Council was convened by Brazil, which holds the pro tempore presidency of the regional bloc, and had as a single point in the order of the day "the definition of mechanisms to respond ( the crisis), if not coordinated, at least with transparency so that there are no surprises, "according to said Brazilian Foreign Minister Celso Amorim. He added that "We must be prepared and avoid particular responses were given in the past and that there were, again not to be taken now", of course, this was interpreted as an expression of concern by Brasilia, with the announcement by the president of Argentina, Cristina Kirchner, of its intention to restrict imports to protect local industry.

MERCOSUR's statement recognizes that today South America "better prepared than in the past" to tackle the financial crisis, thanks to its "sound macroeconomic fundamentals." Strengthening integration, trade and financial cooperation in the region can be "crucial" to "preserve and expand economic and social gains of recent years" "Fortifying our integration mitigates the effects of the crisis," to maintain trade flows. The fact that closed the MERCOSUR summit that looked like the financial crisis should be seen and known about, that Argentina proposed the creation of a commission to monitor trade in the region, for MERCOSUR to address the financial crisis Proposals for sweeping the world Argentina Argentina proposed to the other members of Mercosur increase protection against the arrival of products from third countries to be covered and the effects of the financial crisis. And also made his wont hear about the need for flexible multilateral financing for governments in trouble. The Argentines brought three proposals. One is to create a monitoring commission trade, to detect excessive flows that affect specific sectors.

This was the idea that more consensus awoke, because in the final declaration speaks of "the desirability of monitoring the potential impacts of the crisis on financial markets and production levels and employment." The second proposal was the most controversial: the rise of tariffs on specific products such as textiles and certain few lines of leather goods. But first he insisted that protectionism was not good at the end of the day, Amorim told reporters it was "examining" the posing of Taiana. The third proposal is rather a plea: the request that the Mercosur give our country a "sorry" for extending the permission for import of capital goods with zero tariff, an advantage that Argentina has and expires at year end. www.entorno-empresarial.com