Toward the end of EU -Mercosur Interregionalism? Sebastian Santander - - PowerPoint PPT Presentation

“Toward the end of EU-Mercosur Interregionalism?”

Sebastian Santander Liège University (ULg)

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EU-Mercosur

• Relations date back to 1990s
• Interacted as regions
• The interregional relations covered a wide range
• f issues:

– Democracy – Human rights, – Immigration, – Institutional cooperation – …

• The negotiation of interregional FTA

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Several incentives

• Political and economic liberalization in South

America

• Consolidation of the EU and the will to adopt a

comprehensive strategy toward LA

• “Open-regionalism” (outward-oriented and

compatible with globalisation)

• FTAA project
• Perceptions:

– Mercosur as regional project “similar” to the EU – EU seen as a reference

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Interregionalism affected by several factors

• The failure of the FTAA project affected political will:

– EU feared of a Pan-American bloc – Mercosur: EU as a conterweight to the FTAA project

• Eastern enlargement

– Most East European countries no political interest in LA – Agricultural subsidies extended – Inside the EU: consolidation of a front against an Association Agreement with Mercosur

• Increasing concerns of the EP for European agriculture
• Impact assessment study financed by the European

Commission:

– A FTA with Mercosur “may cause a decline in farm income”

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Political evolution of South America

• South America:

– Questioning the « Washington consensus » and – moving away from neoliberalism

• Measures:

– Diversify their economy – Re-launch their industry – Support consumption – To boost internal production: import restriction measures – Nationalizations

• Argentina : after 2001, the Argentine State has recovered

an important role in the economy

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Brazil

• A lot of concern
• Documents showing de-industrialization
• Debate has intensified

– Government adopted import restrictions

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Economic priorities less compatible with EU- Mercosur trade agenda

• Mercosur countries reluctant to discuss

about:

– Industry – Investment protection – Government procurement – …

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The impact of the EU-Brazil partnership

• The result of an European initiative
• The EU considered the launching of bilateral

partnership with Brazil as way:

– To boost the integration process of Mercosur – To reinforce EU-Mercosur relations – To conclude the interregional Association agreement

• It didn’t fulfill those expectations

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• Bad climate inside Mercosur
• The message ≠ from:

– its traditional interregionalist doctrine and – its preference for groups-to-groups dialogue

• Undermining EU image as an “external

federator” for regionalism

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Perceptions

• South American perceptions:

– EU pursues the same strategy as that of the US – Association Agreement with the EU not worth:

• Economic model
• EU perceptions:

– Mercosur not inspired by the EU integration project – EU disappointed by Mercosur

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