Historical evolution of the negotiations between Mercosur and the European Union. By Dana Chavarro, Luisa Diaz and Santiago Mejia Mercosur On March 26, 1991 Mercosur is established, a regional economic bloc comprising Argentina, Brazil, Paraguay, and Uruguay. The relations between the European Union (EU) and Mercosur began almost with the creation of Mercosur itself The Role of Spain and Portugal Played a role in bringing the EU and Mercosur closer, but their influence was limited by the EU's internal politics and broader strategies. The EU's interest in Mercosur stemmed from global shifts and its trade strategy, not just Iberian influence. Agreements In 1995, a framework agreement was signed, laying the groundwork for comprehensive interregional partnership negotiations; also in 1999 began formal negotiations for a comprehensive Free Trade Agreement (FTA) between Mercosur and the EU commence. Free Trade Agreement European Union was motivated by economic interests. The EU saw Mercosur as a rapidly growing market and a potential economic partner. The Commission argued that a free trade agreement would be necessary to maintain its position as Mercosur's leading trade partner and prevent Asian competitors. SOUTH AMERICA, THE NEW ATTRACTIVE. The Mercosur started to become an attractive market for all European companies, which saw “the South American market as a new financial horizon, a way of opening up to global competition and staking the EU’s place among competitors” The EU's GDP per capita triples that of MERCOSUR, and the EU enjoys a more unified economic and political landscape with a common currency and single market The negotiations have been affected by broader geopolitical dynamics, including the rise of protectionism and populism. THE AGRICULTURE While the fact that Mercosur did not consolidate its internal rules and standards was certainly a contributing factor, this should not be taken lightly. Even with an institutionally unified Mercosur, serious disagreements over trade liberalization in agriculture would persist. Civil society groups and environmental organizations have raised concerns about the potential negative consequences of the agreement on local communities and ecosystems. The EU has a GDP per capita 3 times larger than MERCOSUR The relationship between MERCOSUR and the EU is complex and multifaceted, characterized by asymmetry, internal divisions, and uncertainty. A False Reflection: The Asymmetry at Play The dream of a mirrored partnership between MERCOSUR and the EU crumbles under scrutiny. MERCOSUR, a South American economic union, pales in comparison to the EU's economic might and integrated structure. Social and Cultural Exchange Promote educational exchange programs and cultural events to foster mutual understanding and collaboration. Bridge the technological gap between the regions A Double-Edged Sword: The Potential Impact of an Agreement A trade agreement, if reached, could be a double-edged sword for MERCOSUR. Increased trade and investment with the EU could provide a much-needed economic boost. A Fractured Voice: Internal Disunity Within MERCOSUR Adding to the challenge is the lack of a unified voice within MERCOSUR. Member states like Brazil and Argentina, eager for a piece of the lucrative European market, push for a deal. References Nolte, D., & Correa Neto Ribeiro, C. (2021). MERCOSUR AND THE EU: THE FALSE MIRROR. MERCOSUR AND THE EU: THE FALSE MIRROR, https://www.scielo.br/j/ln/a/9Msq5gFqccKCBxWL9zDFDps/? format=pdf&lang=en The European Union and Brazil - International Cooperation. (s. f.). EEAS. https://www.eeas.europa.eu/brazil/european-union-and-brazilinternational-cooperation_en?s=191 EU Communication (2019) on stepping up EU action to protect and restore the world’s forests. (2019, 23 julio). European Commission. https://commission.europa.eu/publications/eu-communication-2019stepping-eu-action-protect-and-restore-worlds-forests_en The State and Civil Society Organizations: Friends or Foes? (s. f.). GMFUS. https://www.gmfus.org/news/state-and-civil-societyorganizations-friends-or-foes
