[ad_1]
BRASILIA – Argentina’s decision to walk away from Mercosur in the group’s future free trade negotiations could be a “blessing in disguise” for Brazil, according to an experienced observer’s assessment heard by Broadcast on condition of anonymity.
Brazil has sought greater flexibility in Mercosur to allow the countries of the bloc to individually seek agreements with other countries, including tariffs and quotas, without necessarily negotiating under the Mercosur umbrella, as is the case today.
The country is interested in these agreements to carry out its trade liberalization strategy without relying as much on consensus among the countries of the bloc, which may take time.
In evaluating this source, Argentina’s decision paves the way for removing this flexibility proposal from the document. In practice, the bloc countries could form separate coalitions depending on who is on the other side of the negotiating table. It would be a “Mercosur a la carte”.
However, the terms of this Argentine withdrawal will still have to be made official to avoid that, in the future, an eventual return creates uncertainty about the arrangements made during this period of “technical stoppage” of the neighboring country in its relationship with the block. The analysis of this source is that it will be necessary to establish a “take it or leave it” clause, that is, Argentina would have to accept what has already been negotiated or not participate in these agreements.
European Union
A positive point is that Argentina maintained its commitment to the agreements reached last year with the European Union and EFTA, a European bloc made up of Switzerland, Norway, Iceland and Liechtenstein. The agreements also provide that the approval of the parliaments of the countries involved is valid.
The evaluation of this observer is that, once the economic part of the agreement with the EU is in force, this will serve as a reference point for Brazil in any other negotiation, without the concerns that exist today with the discussions on the External Tariff. Common (TEC) practiced by Mercosur, which today functions as a customs union.
Argentina will be left out of ongoing discussions with Canada, Singapore, South Korea, Lebanon, Mexico, Japan, Vietnam and the United States. Several of these agreements are in Brazil’s plans to speed up negotiations.
[ad_2]
