MERCOSUR/L AND REGIONAL DEVELOPMENTS IN LATIN AMERICA

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MERCOSUR/L AND REGIONAL DEVELOPMENTSIN LATIN
AMERICA

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INTRODUCTION

• Will look at
• Mercosur/l as an organisation
• SA relations with Mercosur/l
• SA bilateral relations Argentina, Brazil
• Current trends in Latin America generally

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MERCOSUR/L

• Spanish/Portuguese acronym for Common Market of
  Countries of the South
• Members Argentina, Brazil, Paraguay, Uruguay
  (Venezuela completing formalities)
• Associate members Chile, Bolivia, Peru, Mexico
• Secretariat in Montevideo, Uruguay

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MERCOSUR BACKGROUND

• Treaty of Asuncion, 1991
• Economic considerations, but also
• Political considerations
• Drive for regional cohesion
• Regional Parliament, May 2007

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MERCOSUR BACKGROUND

• Need for regional cohesion expressed in formation
  of several multilateral bodies, eg
• Latin America Parliament (1964)
• Andean Parliament (1969)
• Central American Parliament (1987)
• Indigenous Parliament of the Americas (1987)
• Amazonian Parliament (1989)

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SA and MERCOSUR

• SAs western neighbours
• Similar colonial background
• Political like-mindedness (Progressive
  governance)
• Natural partners South-South cooperation
• Competitors in some areas (traditional markets,
  commodities) but
• Room for bilateral trade, investment
• Allies in South context (eg UN, Bretton Woods
  revamp)

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SA and MERCOSUR

• MERCOSUR members significant players bilaterally
  and multilaterally
• as a group (size, numbers, production share)
• Individually (Brazils President Lula and Africa
  Uruguay commitment to Africa MONUC Argentinas
  size, potential, BNC)

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MERCOSUR TOWARDS A TRADE AGREEMENT

• President Mandelas address at Mercosul Summit,
  Florianopolis, December 2000
• Minister Erwin signed Declaration of Intent
  towards an FTA
• Several rounds of negotiations PTA first
• Next round Pretoria 8-9 October 2007

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MERCOSUR INTERNAL

• Imbalances larger, smaller economies (Argentina,
  Brazil cf Uruguay, Paraguay)
• Tensions
• Possible new proposals

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ARGENTINA

• Political developments
• President Nestor Kirchner May 2003
• Elections Senator Cristina Kirchner?
• Economic developments
• GDP US180 bn (2005), US211bn (2006)
• Reduction of foreign debt

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SA-ARGENTINA

• BNC February 2007
• 11 Agreements concluded, 2 underway
• Trade balance almost 51 Argentinas favour
• Trade study by SA Embassy
• SA trade and investments Anglo Gold Standard
  Bank Sappi Irvin and Johnson Naspers

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SA-ARGENTINA

• Multilateral
• Similar policies, objectives
• Development agenda of South
• Centrality multilateralism and UN system
• Reform global economic governance, trading system
• African Agenda
• Argentina supportive

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BRAZIL

• Political developments
• President Lula re-elected (last term, to 2010)
• Survived several political scandals
• Governing coalition controls 70 seats parliament
• Economic developments
• Actual GDP 2006 US1 067 bn
• January 2007 Accelerated Growth Plan

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SA-BRAZIL

• Political relations
• Strategic partner (Presidents meet regularly)
• Trilateral, bilateral, multilateral
• Common challenges income disparity, poverty
  eradication
• Bilateral agreements, visits Joint Commission
• Economic relations
• Total trade 2006 US1,894bn (surplus Brazil)
• Trade missions DTI trade survey SA Embassy

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SA-MERCOSUR/L

• Conclusion
• Common goals, experiences
• Strong partners South-South
• Challenges
• trade imbalances
• Conclusion SACU-MERCOSUR/L FTA/PTA

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