MERCOSUR: a new approach to regional integration? (original) (raw)
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Regional Integration in Latin America
The regionalization process is not something new in International Relations. The most prominent paradigm of such tendencies is of course the European Union. However, such tendencies have been met in Latin America since the early 60s, but on the contrary to EU, these initiatives failed due to the tendency for national protectionism, the tensions between the states and the private sector, and the uneven trade balances among partners that created serious political tensions in the agreements. • Adding to the above the U.S. skepticism concerning regional approaches during that period, and also the fact that during this period LA countries were dominated by authoritarian governments that stimulated national rivalries, border conflicts and restrictions on the flow of goods, people and development of regional infrastructure, clearly someone could see the negative scheme that the first attempt had to deal with. • During the 90s a new wave of regionalization came into surface. Under the pressure of a devastating economic collapse the states of Latin America proceeded to a structural economic reform, a new wave of Preferential Trade Agreements (PTAs) known as the ‘new-open regionalism’. The main characteristics and the main objectives of this new attempt were: a) the strengthening of structural economic reform through the creation of strategic policy tool capable to reinforce this reform, b) the economic transformation via a reciprocal openness that guarantees new opportunities for export experience and diversification and thereby over time serve as a strategic stepping stone to compete more effectively in a global economy, c) the attraction of foreign direct investment by creating a larger liberalized rulesbased market with locational advantages, d) the establishment of a functional regional cooperation following of course the example of Western Europe, and finally in terms of geopolitics, the establishment of a safety net between likeminded countries for the promotion of disarmament and peace among neighbors, while enhancing their bargaining power in international fora. • In 26th of March 1991, the Mercosur was established among Brazil, Argentina, Uruguay and Paraguay and it seemed that the regionalization process in Latin America made a very positive and radical shift, with Brazil and Argentina taking the wheel. The route of Mercosur until now is for many experts quite ambiguous, because the outcomes of such an ambitious effort don’t seem to be too obvious. • However, Mercosur tried to promote not only regional cooperation but transregional as well, with other regional blocks such as European Union, ASEAN and NAFTA. Collaborations that untill now don’t seem to flourish in a desirable level.
Regional Integration in Latin America: States, Markets and Organizations
2023
This paper is based on the research related to regional integration attempts in Latin America and their effect on the economic development of Latin American countries. Recent analyses clarify that the US’ intervention in the politics of Latin America has been the main obstacle of the regional integration process. Most importantly, political fragmentation of the countries in the region affects the success of the organizations that are formed for the regional integration. This is especially visible in the political processes of the countries such as economic crises in Argentina, political instability in Venezuela and increasing migration to the US from Latin American countries. Notable studies reveal that despite the regional integration efforts, the economic benefits to the region has been limited compared to the benefit of the global economic powers. Different from the current literature, this paper focuses on the internal dynamics of Latin American countries. In this respect, this paper investigates the effect of the regional integration attempts for the economic development of the countries in Latin America. In this regard, the rational state behaviour was found as an important element to explain in relation to the Latin American integration attempts. With a liberal intergovernmentalist perspective, this paper aims to reveal the success of regional integration attempts in Latin America with the cases of Latin American Free Trade Association (LAFTA), Southern Common Market (MERCOSUR) and Andean Community (CAN). The main argument of this paper is that increasing economic cooperation and creating a reconstruction model with a financial assistance to the less developed countries in the region have led to a regional economic development in cohesion with the policies of the regional powers of Latin America.
Towards an Evaluation of Regional Integration in Latin America in the 1990s
The World Economy, 1999
HE decade of the 1990s has witnessed a wave of regional integration initiatives in Latin America: more than 15 agreements-free trade areas or customs unions-since 1990 with a handful more in varying degrees of negotiation (see Table 1). However, this was not just a Latin American phenomenon as regionalism has more than ever become a global trend (Mistry, 1996). Indeed, now Japan, South Korea and Hong Kong are the only World Trade Organisation (WTO) members which are not signatories of at least one preferential trade agreement (WTO, 1995). 1 Regional integration is not new to Latin America. Economic integration played an important role in the region's early postwar economic history. The 1960s and 1970s saw a number of very ambitious initiatives inspired by the successful Western European experience (Ffrench-Davis, Muñoz and Palma, 1994). Indeed, at its peak in the late 1960s and early 1970s, the topic of integration was hard to avoid in the discussion of Latin American development. However, disillusionment with integration processes had clearly set in by the late 1970s and the discussion of regional integration was all but silenced by the external crisis of the early 1980s.
Regional integration in Latin America: historical developments, current challenges, especially in Mercosur Paulo Roberto de Almeida Professor of Political Economy at the University Center of Brasilia (Uniceub). Meridiano 47 (Brasília: IRel-UnB, vol. 19, 2018; ISSN: 1518-1219; DOI: http://dx.doi.org/10.20889/M47e19015; link para o artigo: http://periodicos.unb.br/index.php/MED/article/view/M47e19015; link em pdf: http://periodicos.unb.br/index.php/MED/article/view/M47e19015/20731). Summary: Historical context of previous attempts at integration Contemporary Latin America integration efforts: fragmentation? Mercosur enters the scenario: high expectations, some accomplishments Mercosur expands, somewhat erratically, in the region, but stays stalled What lies ahead for the integration process in Latin America and in Mercosur?
Challenges to Regional Integration in Latin America 1
2010
Relying on natural resources-based exports, this productive pattern has long characterised the development of the Latin American economies, and continues to be one of the most compelling drawbacks for regional development. Although their commodities’ exports have seen a temporal rise both in their prices and in their international demand, this type of productive specialisation has resulted in frequent external pressures that have limited long-run economic growth, rendering these economies very vulnerable to international fluctuations. Besides, since the expansion of their productive capacity heavily depends on the imports of capital goods, the traditional accelerator effect of domestic investment could be reduced and, in this way, economic growth could also be jeopardised. The current situation in developing countries has called forth the necessity both to reduce the effects of the international economic turmoil and to reinforce their contracting power in the multipolar internationa...
Regional integration in Latin America. Comparative theories and institutions
Sociologia. Problemas e Práticas, 2004
Regional integration in Latin America is a long but not-so-successful story. Only by 1990 the creation of a new regional bloc — namely Mercosur — and the relaunching of two previous attempts — the Andean Community of Nations and the Central American Common Market — allowed to envision a different trend. Today, the three referred blocs feature a series of divergent characteristics, among them the reached level of integration and the type of institutionalization. However, all three have something in common: none fits easily the theories of regional integration that were developed drawing on the European case. This paper analyzes the Latin American integration experience in light of the main contemporary integration theories, in order to pinpoint some inconsistencies between theories and cases with a view to guiding further research. Among the main findings is the increasing relevance of national executives as crucial driving force of the integration processes.
Regional Integration of Trade in South America: How Far Has It Progressed and in Which Sectors?
The International Trade Journal, 2013
This paper looks at the regionalisation of trade in South America, by looking at trends in trade during the 1994-2007 period. It finds that the increasing political will to strengthen regional arrangements like Mercosur and the Andean Community, has not impacted extensively on the overall level of regionalisation of trade, which is relatively low and has not changed significantly over the period. Intermediates trade also remains relatively low within the region, which implies that regional production networks are underdeveloped, although high tech and medium tech consumer goods markets are relatively integrated. Overall high tech trade is not notably more global than trade in other types of technology, except in imports.
Trends in Regional Cooperation in Latin America: the Crucial Role ofIntra Regional Trade
A significant upsurge has taken place in reciprocal trade within Latin America during the 1990s. In fact, total intra-regional exports of Latin America doubled in the four years 1990-94. By 1994 reciprocal trade covered 22% of total exports of goods, capturing nearly two-thirds of the increase in exports of the region between 1990 and 1994. If attention is focused on manufactures, both growth and shares are notably higher; actually, intra regional exports are more intensive in manufactures and in non-traditional products. In this sense, regional integration contributes to a more dynamic productive transformation of the domestic economies, and can contribute to complement policies directed to enhance systemic productivity. This paper focuses on the efforts made by Latin America to foster trade within the region, and on the results achieved. Section I presents a brief survey of economic integration between 1960 and 1990, passing through the swings experienced. Section II presents the...