Guedes says it is necessary to modernize Mercosur and suggests reducing the bloc’s tariff

The Minister of Economy, Paulo Guedes, stated on August 19 that Mercosur does not have the same importance for Brazil as it had initially, when it was “a kind of springboard” for the country to advance in terms of competitiveness.

According to him, the block “is not meeting expectations”, even though it has not altogether ceased to be a “valid and important tool”. The solution for this, said Guedes, involves the modernization of the bloc. The statements were made during a public hearing in the Senate, aimed at debating the expansion and modernization of the bloc constituted by Brazil, Argentina, Uruguay, and Paraguay.

“In the last 30 years, global trade has increased significantly and has lifted 3.7 billion people out of poverty, increasing per capita income. In the meantime, although we were pioneers in creating large trade integration blocs, we were left behind”, said the minister as he began his participation in the commission.

See the chart below for a history of container movement between Brazil, Argentina, Paraguay, and Uruguay since 2018. Data are from DataLiner:

Container handling between Argentina, Brazil, Paraguay, and Uruguay | Jan 2018 to Jun 2021 | TEU

Source: DataLiner (To request a DataLiner demo click here)

Guedes said that Mercosur was “a great success” as a platform in increasing the bloc’s integration and launching the Brazilian economy into the global economy. “It was a kind of springboard for Brazil to integrate into the global economy,” said the minister, recalling that, between 1991 and 1998, Mercosur’s share of Brazilian trade flows rose from 9% to 18%. “After that, it started to fall”, he added.

Source: Canal Rural

To read the full original article, visit the link:

https://www.canalrural.com.br/noticias/guedes-diz-que-e-preciso-modernizar-mercosul-e-sugere-redutor-tarifa-do-bloco/

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