Brazil and Argentina Protectionism to Jump with Venezuela in Mercosur

    Venezuela has become the fifth member of Mercosur, an addition that could accelerate the South American trade bloc’s steady drift away from free trade principles.

    The presidents of the current members of Mercosur – Argentina, Brazil, Paraguay and Uruguay – signed last night, July 4, a treaty in Caracas with President Hugo Chavez.

    The move combines South America’s largest oil exporter with two of the world’s largest grain and meat producers to create a grouping of some 250 million people.

    Pavel Rondón, Venezuela’s deputy foreign minister for Latin America, said the move to become a full member the 15-year-old bloc would "open up a huge market…for the country’s businesses".

    Mr Chavez said Venezuela’s entry into Mercosur marked "a new era in both Venezuelan and South American history", and added: "The union of South America is today more feasible than ever before."

    But domestic critics – principally those same local businesses – claim they were never consulted over a decision they say is more motivated by Chavez’s political agenda than by economics.

    Venezuela is only really competitive in the area of oil, an export commodity that does not require trade agreements. "The government has taken this decision guided by geopolitical criteria rather than by economic motives," said José Luis Betancourt, head of Fedecamaras, the national business federation.

    While Argentina and Brazil have officially embraced Venezuela’s entry, business groups in those countries have warned that Chavez will use the trade bloc not only to propagate policies opposed to free trade but also as a platform to rail against the US.

    That, they say, could undermine already weak cohesion within Mercosur. Paraguay and Uruguay are becoming averse to maintaining a pact distorted by their two larger neighbors’ protectionism.

    Mr Chavez signed a "strategic alliance" with Néstor Kirchner, Argentine president, earlier in the day and offered diplomatic support for Argentina’s bid to reopen talks over the sovereignty of the Falkland Islands.

    Mercopress – www.mercopress.com

    Tags:

    • Show Comments (1)

    • Guest

      ?????
      Thus your goal is to have the other nations under the free market rules for what you export, but not you for what you import !!!!!!!

      Here one can recognize youjr way of thinking !
      there is no difference within your own society. Some are under the laws and a minority is systematically…..never ever…..found guilty ! something that is called : TOTAL IMPUNITY !

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    All the Sounds of City of God

    The soundtrack of City of God is a treat. It brings a concise mini-history ...

    Brazilian airline TAM

    The Lan-TAM Alliance Will Make Travel Easier in Brazil and Chile

    Brazil's TAM Linhas Aéreas and Lan Chile, both airlines with a clear dominating position ...

    Revisiting Two Minstrels

    Antônio Carlos Jobim and Vinicius de Moraes: for two generations, their songs have been ...

    Lost Horizon

    The elopement would happen on the wedding’s eve, the day when the old Manuel ...

    Brazil’s Maria Rita Gets Her Hollywood Debut

    Brazil’s jazziest female singer and Latin Grammy’s Best New Artist of 2004, Maria Rita, ...

    IMF Lauds Brazil But Also Urges Budgetary Reform

    IMF’s managing director Rodrigo de Rato, during a press conference in Singapore, Friday, September ...

    Search for Bodies of Brazilian Jet Is Slow and Painful: Only Two Bodies Recovered

    There were no survivors among the 155 people aboard the Brazilian jetliner that collided ...

    Petrobras offshore

    Once Again Brazil Finds Light Oil Under the Deep Atlantic Sea

    Brazil's state-run oil multinational Petrobras announced, this Thursday, December 20, the discovery of another ...

    Old Plan, Old River

    California and Israel have been used as inspiration for several irrigation plans in the ...

    To Develop Brazil’s Northeast Is Obligation Not Dream, Says Lula

    At a last stopover on Monday, January 16, in northeastern Brazil, during visits to ...