Economy Minister: Brazil to insist on changes in Mercosur

Economy Minister Paulo Guedes stated this Monday, September 27, that Brazil will continue trying to make changes in Mercosur. According to him, the Brazilian government is seeking to “modernize” the economic bloc formed by Brazil, Argentina, Uruguay, and Paraguay but has encountered resistance from Argentina.

“Our position is to move forward. We are not leaving Mercosur. But we will not accept Mercosur as an ideology tool. Mercosur has a very clear proposal: it is an integration platform in the global economy. If it doesn’t deliver this service, we will modernize, those who are inconvenienced can withdraw”, he said while participating, remotely, in the event O Brasil Quer Mais, promoted by the International Chamber of Commerce.

Brazil has proposed a 10% reduction in the common external tariff (TEC) for all products, while Argentina advocates that only part of the goods should be included in the reduction. “We will stand firm in this position. And Argentina seems to be very firm in an antagonistic position to ours,” said Guedes about the bloc’s internal disputes.

Disagreements are also about the form of decision-making within the bloc. Currently, all decisions are made by consensus among the four member countries. “Unanimity is required to change Mercosur but instead they veto. In fact, there are three wanting to modernize Mercosur: Brazil, Paraguay, and Uruguay. Yet we understand that Argentina is at a very delicate moment right now”, commented the minister on the subject.

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