Mercosur is a customs union between Argentina, Brazil, Paraguay and Uruguay, created in 1991 with the aim of promoting the economic integration and sustainable development of its members. The idea of creating a union in South America dates back to the 1960s, when several attempts were made to create trade agreements between countries in the region. However, it was in 1985 that the Treaty of Asunción was signed, which laid the foundations for the creation of Mercosur.
Mercosur began to operate in 1991 with the entry into force of the Ouro Preto Protocol, which established the rules and procedures for implementing the trade agreement. In 1994, the Protocol of Olivos was signed, expanding the scope of Mercosur and establishing the creation of a Mercosur parliament, a permanent court of review and a Mercosur bank.
Challenges
Since its creation, Mercosur has faced various challenges and has undergone changes and adaptations in its structure and functioning. One of the main challenges has been the coordination and harmonization of the economic and trade policies of its members, as each country has different interests and priorities. In addition, Mercosur has faced competition from other trading blocs, such as the European Union and the Pacific Alliance.
Despite these challenges, Mercosur has made significant progress in the economic and trade integration of its members. It has signed trade agreements with several countries and trading blocs, which has allowed increased trade between Mercosur members and with other countries. In addition, it has developed a common investment policy and made progress in harmonizing norms and standards in various fields, such as intellectual property and e-commerce.
In recent years, Mercosur has faced new challenges, such as the economic crisis in Argentina and political uncertainty in Brazil, which have called into question the viability and future of the bloc. However, Mercosur members remain committed to regional integration and are working to implement measures to strengthen and modernize Mercosur and make it more competitive in an increasingly globalized context.
Clash between Uruguay and the other members
Since before the start of the summit, the government of Uruguayan President Luis Lacale Pou has generated friction due to his administration’s interest in including Uruguay in the Trans-Pacific Alliance, despite not having access to the ‘Pacific Ocean.
The Trans-Pacific Partnership (TPP) Agreement It was a trade agreement signed in 2015 between 12 countries in the Asia-Pacific region, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The TPP aimed to promote trade and investment among member countries and establish a common framework of rules and regulations in areas such as trade in goods and services, intellectual property and electronic commerce.
The TPP was signed in 2015 after years of negotiations, but it did not come into force because the United States, one of the largest member countries, withdrew from the agreement in 2017. Without the participation United States, the TPP has lost much of its value and relevance and has not been ratified by all member countries. In 2018, the remaining countries agreed to a new version of the TPP, known as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which came into effect in 2019.
Uruguay’s intentions to join the TPP have prompted a note of protest from the governments of Argentina, Brazil and Paraguay, as it violates MERCOSUR’s statutes by seeking to negotiate alone. Previously, the Lacalle Pou government had already generated discussions to pursue a free trade agreement with China, also alone.
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