Mercosur Countries Research Articles

The Compatibility of the draft EU-Mercosur Free Trade Agreement with EU and International Climate Protection Law

Since 1999, the EU and the Mercosur countries have negotiated an Association Agreement (AA) which will include a trade pillar, the Free Trade Agreement (FTA). The latter aims at increasing the amount of goods crossing borders, including products associated with high greenhouse gas emissions or having adverse impacts on forests and other valuable ecosystems. This article assesses whether the adoption of the FTA would contravene the EU’s obligations under international law and EU primary law – with a focus on climate protection.

Potential for Cooperation between Russia and MERCOSUR under Sanctions

Under the pressure of the unprecedented economic sanctions, the Russian Federation faces the tasks of reformatting its foreign economic strategy, transforming its trade policy, changing supply chains, and expanding cooperation with the partners that maintain economic neutrality, particularly with the countries in Latin America, the Asia-Pacific region, and the Middle East. The purpose of this research is to determine to what extent economic sanctions can serve as a factor for activating trade and economic relations between Russia and the countries of MERCOSUR as the most significant potential partners from the Latin American region. The research question of the article is to what extent it is possible to sooth the impact of sanctions on the Russian economy by stimulating trade links with MERCOSUR countries. The article attempts to compare the relative significance of Brazil, Argentina, Uruguay, and Paraguay as trade and economic partners for Russia at the time of sanctions. The article identifies factors contributing to the growth of potential of mutual trade and economic cooperation and those constraining it; provides an assessment of the current development of trade and investment relations between the parties; calculates indicators to determine the possibility of substituting the lost markets for export-import operations by the new ones.

Evolution of Brazil’s Strategic Behavior Towards Smaller MERCOSUR Countries in the XXI Century

In foreign policy documents and public statements by senior Brazilian officials, the development of the Southern common market (MERCOSUR) is mentioned as a foreign policy priority, but the dynamics of integrational processes in it are far from being positive due to the economic asymmetry of the countries represented — major players — Brazil and Argentina and smaller economies — Uruguay and Paraguay. The authors of the article considers a foreign policy strategy of large countries in relation to smaller ones in the association as the reason for the diffi culties in eliminating the economic asymmetry in MERCOSUR. The purpose of this article is to analyze Brazil’s strategic behavior towards Uruguay and Paraguay. The article proves that the slowdown in the pace of deepening integration in MERCOSUR is directly proportional to the decrease of the importance of Uruguay and Paraguay in Brazil’s foreign policy strategy. The author of the article focuses on the evolution of Brazil’s strategic behavior towards Uruguay and Paraguay: it underwent a transformation from a policy of pressure in the 1990s to Brazil’s mediation in regional confl icts in the 2000s. In the late 2000s, as President Lula da Silva’s plans to deepen political integration in MERCOSUR showed their ineff ectiveness due to the country’s mounting asymmetries with Uruguay and Paraguay, integration into MERCOSUR gradually began to play a secondary role in Brazil’s foreign policy strategy. During the presidencies of Rousseff and Temer, this trend only intensified, reaching its peak after President Bolsonaro came to power. The fi rst part of the article presents theoretical aspects of Brazil’s strategic behavior in relation to small member countries of the association. The second part of the article will analyze specific examples of changes in Brazil’s foreign policy strategy towards Uruguay and Paraguay. Finally, the conclusion outlines the full evolution of Brazil’s strategy towards the small MERCOSUR countries from the 1990s to 2022, and will also focus on the current situation in the association.

ПЕРЕГОВОРИ ЩОДО УКЛАДЕННЯ УГОДИ ПРО АСОЦІАЦІЮ МІЖ ЄС І МЕРКОСУР (1999–2023

The article analyzes the negotiations on the conclusion of the association agreement between the EU and Mercosur. The stages of negotiations are defined, starting with the prerequisites for the start of this process (signing in 1995 of the Interregional Framework Cooperation Agreement between the EU and Mercosur), the official start of negotiations in 1999, the results of the main bilateral meetings of representatives of both sides, the resumption of the negotiation process in 2010, 2019, and 2023. The influence of the summits of the heads of state of the European Union and Latin America and the Caribbean, domestic and foreign political circumstances on this process is determined. In the course of the study, it was concluded that negotiations on the conclusion of an association agreement between the EU and Mercosur have become a key issue in the development of relations between the two regional integration associations and an important part of the EU’s foreign policy strategy in Latin America. The prospects for further development of the negotiation process were also analyzed in view of the recent failures to complete the signing of the agreement in 2023 and the current situation in both blocs at the beginning of 2024. Positive factors that influenced the attainment of certain milestones in the negotiation process were identified, such as the leadership role of the Iberian states – Spain and Portugal, which advocated negotiations due to their special linguistic, cultural, historical, and business ties with Latin America. Important stimuli included the summits of the countries of Latin America, the Caribbean, and the EU. Despite the lengthy negotiation process, the agreement was not signed due to resistance from the agrarian lobby in the countries of the European Union, the absence of a common EU strategy for Latin America, and domestic political issues in the Mercosur countries.

Environmental Provisions in Trade Agreements

This article investigates the impact of environmental clauses in regional trade agreements on the international trade of CAN and MERCOSUR countries between 2001 and 2019. We use a gravity model estimated with the PPML estimator to analyze the relationship between environmental provisions in trade agreements and total exports. We find that the simple inclusion of environmental provisions does not have a significant effect on trade. However, the presence of a Preferential Trade Agreement (PTA) in the midst of compliance is associated with a negative and significant effect on total exports. This result is accentuated if the trade occurs in a South-North structure. This finding complements previous research and provides a more complete understanding of the impact of environmental clauses on international trade in the countries of the region.

Unfair competition in MERCOSUR and the challenges of new technologies

Abstract This article reviews the unfair competition main practices in the MERCOSUR countries and the challenges posed by new technologies. This analysis is based on the most common considerations of unfair behaviour such as intentional confusion, discrediting, misleading and other unfair competition acts. How the MERCOSUR countries are currently dealing with traditional unfair competition acts and how case law is developing toward a refined comprehension of the unfair competition acts are important to understand which initiatives should be addressed to regulate such acts in the new technological environment. Based on recent case law involving online platforms and the recent change in Brazilian case law regarding the responsibility of online platforms and the goods/services advertised by other parties in violation of IP Rights, we can conclude that transparency and ethical behaviour are essential topics to be addressed by the Courts and further research is necessary when facing unfair conducts today.

The role of digital tools in supporting the implementation of the international treaty on plant genetic resources for food and agriculture in MERCOSUR countries

The role of digital tools in supporting the implementation of the international treaty on plant genetic resources for food and agriculture in MERCOSUR countries

Analysis of Financial Development Shocks at Different Time Scales with Wavelet Transform (Wavelet): The Case of MERCOSUR Countries

Bu çalışmanın temel amacı, 1980-2020 dönemi yıllık verilerle MERCOSUR ülke grubunda finansal gelişme şoklarını analiz etmektir. Analizde, finansal gelişmeyi temsilen finansal gelişim endeksi (FD) ve onu oluşturan finansal kurumlar endeksi (FI) ile finansal piyasalar endeksleri (FM) kullanılmıştır. Dalgacık dönüşümü kullanılarak şokların kısa, orta ve uzun vadede kalıcı olup olmadığı sınanmıştır. Bu yönüyle çalışma literatüre önemli katkı sunmaktadır. Araştırma neticesinde orta vadede, incelenen tüm değişkenlerin karşılaştığı şokların geçici özellik taşıdığı tespit edilmiştir.

Burden of non-communicable diseases and the achievement of the sustainable development goals in 2030 in Mercosur countries

ObjectivesThe aims of this article were to analyse the burden of NCDs and their RFs in the Mercosur countries between 1990 and 2019 and to project mortality trends for 2030. Study designEpidemiological study of time series. MethodsThe present study used data from the Global Burden of Disease study. The absolute number of deaths, mortality rates, disability-adjusted life years, years of life lost, years lived with disability and the burden of premature mortality by NCD attributable to the RFs were evaluated. Projections were made up to 2030. Age-standardised rates were used to draw comparisons by years and by countries. The analysis was conducted using the RStudio software. ResultsBetween 1990 and 2019, a decrease was found in the premature mortality rates caused by NCDs in all the countries, except for Paraguay, which remained stable. When analysing premature mortality rates due to NCDs up to 2030, it was predicted that none of the countries would achieve the sustainable development goal of a one-third reduction in premature mortality by NCDs. Regarding the impacts of the RFs for NCDs, smoking, dietary risks, high blood pressure (BP) and high body mass index (BMI) were the main risks attributable to premature deaths due to NCDs. ConclusionsThe results showed that mortality rates are declining in Mercosur countries; however, none of the countries are predicted to achieve the sustainable development goal of a one-third reduction in mortality due to NCDs by 2030. In addition to access to adequate treatment, progress is required in public regulation actions to reduce RFs, such as smoking, dietary risks, high BP and high BMI.

Towards Sustainable Development: Revisiting the Middle-Income Trap Hypothesis for the Southern Common Market Countries

One of the Sustainable Development Goals (SDGs) of the United Nations is to promote, sustained, inclusive, and sustainable economic growth. However, it is observed that many countries struggle to move up from the middle-income to high-income level, which refers to the middle-income trap (MIT). In this paper, we test the MIT hypothesis using a novel unit root test of Gómez-Zaldívar et al. (2013) across the Southern Common Market (MECOSUR) countries. To do so, we follow a different path from the existing literature and use a novel unit root testing strategy. We first test the significance of the trend term and then examine the unit root properties of the series by allowing multiple structural breaks according to the existence/non-existence of the trend term. Our results provide evidence of stationarity for Brazil, Colombia, Ecuador, and Peru, indicating that these four MERCOSUR countries are in MIT.

South-South monetary regionalism: a case of productive incoherence?

ABSTRACT The variety of monetary and regional cooperation institutions often is characterised as uneven, fragmented, and partially contested. In contrast to this narrative, Grabel (2018) applies a Hirschmanian mindset to monetary and regional cooperation that highlights the experimental nature of recent innovations as a ‘productive incoherence’. This paper presents a case study of such productive incoherence. We examine the institutional set up of the Local Currency Payments System (SML) between the Mercosur countries based on interviews with Central Bank staff and statistical analysis. We assess the factors that explain the emergence, limitations and institutional linkages of the SML. The results suggest that, despite its small scale, the mechanism expanded and provided to be remarkably robust in midst of a generally agonising Mercosur, representing the first cooperation between the Mercosur central banks after decades of absence of coordination of exchange rate policy and foreign exchange regulation. Our findings confirm and further refine Grabel’s approach: assessing incremental changes in terms of highly specific and contingent policies is key to understanding the role institutions play for development. We conclude that even very small-scale initiatives such as the SML can contribute to developmental monetary and financial governance as a building block of reform and change.

RUSSIA — MERCOSUR: IMPERATIVE AND POTENTIAL OF BILATERAL TRADE

The article examines the state and prospects of development of Russia’s foreign trade relations with MERCOSUR. In the light of the West’s anti-Russian sanctions, the position of the bloc’s member states on the development of economic relations with our country is characterized. The assessment of the macroeconomic significance of MERCOSUR and the main directions of its trade policy is given. Quantitative indicators on the volumes and dynamics of bilateral foreign trade turnover, the structure of exports and imports of goods are given. Taking into account favorable prerequisites for expanding trade and economic cooperation, using the methodology of the International Trade Center of the UN Conference on Trade and Development, the potential for increasing exports of Russian goods to MERCOSUR countries is calculated. As part of the analysis of the possibilities of diversifying the range of supplies of Russian products based on the Hausmann-Klinger methodology, the most promising Russian goods for entering the MERCOSUR market are identified. In conclusion, there are considerations aimed at intensifying bilateral trade and economic ties against the background of Western sanctions.

Are Mercosur economies going green or going away? An empirical investigation of the association between technological innovations, energy use, natural resources and GHG emissions

The dynamic association between technological innovations, human capital and greenhouse gas (GHG) emissions has serious environmental repercussions. On the other hand, as significant as it is, this domain is inadequately investigated by environmentalists, and explored the indefinite and vague outcomes. In addition, these studies do not deal with the function of natural resources in determining environmental quality, in an explicit and precise manner. For that reason, realizing the need for a further rigorous and significant assessment of the intricacies concerned in studying GHG emissions, this study investigates the influence of technological innovations, economic growth, renewable energy, natural resources, and human capital on GHG emissions in Mercosur countries from 1990 to 2018. The analysis follows a second-generation perspective, which generates reliable and robust outcomes in the presence of slope heterogeneity and cross-sectional dependency. The long-run elasticity estimates calculated through the Driscoll and Kraay approach suggest that economic growth and natural resources significantly increase GHG emissions, while technological innovations, renewable energy, and human capital help to curtail them. The outcomes of the country-specific analysis are consistent with the Mercosur panel estimates. The findings of the Dumitrescu and Hurlin non-causality test reveal a feedback hypothesis between economic growth, human capital, renewable energy, and GHG emissions. The conservation hypothesis from technological innovation and natural resources to GHG emission is also discovered. Mercosur economies should increase their technological innovation activities and human capital to ensure that new firms and established companies can innovate rapidly in favour of sustainable development and lifestyle quality. The empirical findings of this study allow us to propose various policy suggestions for the Mercosur countries.

From West to East: Mercosur and Singapore agree on FTA

Abstract Among the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), the free trade agreement between them and Singapore reveals Brazil’s clear interest in expanding economic and trade relations with key players in Asia, a highly dynamic trading area.

A Imagem da Turquia no Mercado Turístico da América do Sul:

The main purpose of this research is to explain what the perceived image of Turkey is in South America, to investigate the effects of the perceived image on destination selection, and to determine what needs to be done to create a positive image. In the study, the population was determined as the continent of South America and the research population was determined as full member countries of Mercosur. Quantitative research methods were used in data collection. The sample was determined by purposive sampling from non-probability sampling types. Data were obtained from 508 participants through a questionnaire. Frequency analysis, factor analysis, t-test and regression analyze were performed with the obtained data. As a result of the analysis, familiarity, individual experiences, and cognitive country image factors affect the perceived destination image, while cultural similarity and perceived destination image factors affect the cognitive country image. It has also been determined that there is a reciprocal relationship between cognitive country image and perceived destination image variables. It has been concluded that the awareness of Turkey in the region is limited, it is not seen among the destinations that are highly demanded for travel, and the image of Turkey in the minds as a tourism destination should be made more positive than the current situation for Turkey to attract more tourists from the region.

Prevalence of Aflatoxins in milk in Mercosur countries through studies published since 2010: a Systematic Review.

Prevalence of Aflatoxins in milk in Mercosur countries through studies published since 2010: a Systematic Review.

EU-Mercosur Free Trade Agreement: Exploring the Impact on E-Commerce

Abstract Recent technological changes have altered the way in which interactions take place between economic agents. One of the main advances is the possibility to broadly disseminate information at very low cost. E-commerce is a significant part of this change, becoming increasingly important within the EU. In this paper we analyze the impact of the recent trade agreement reached between EU and Mercosur countries on e-commerce flows. We take advantage of the political agreement announced on June 28, 2019 as a source for identification. We use data from SimilarWeb, a digital market intelligence company that provides information on worldwide Internet traffic. Our results show that the announcement of the Agreement has had a positive impact on Internet traffic between EU and Mercosur countries. To the best of our knowledge, this is the first empirical exercise to analyze the impact of this and other Agreements on e-commerce.

Regional Payment Systems of Asia, Africa, Latin America as a Tool for Regional Integration. Prospects for the Eurasian Economic Union

The article considers the mutual payment systems of regional associations in Asia, Africa and Latin America in line with the global trend to reduce the share of the US dollar in settlements among countries belonging to trade, regional or integration blocs. We took for the research the Regional Payment System SML (Sistema de Pagamentos em Moeda Local) of the MERCOSUR countries, the Regional Mutual Settlement System SUCRE (Sistema Único de Compensación Regional) of the ALBA countries, the Regional Clearing and Settlement System REPSS (Regional Payment and Settlement System) of the COMESA, Settlement system of the Asian Clearing Union. It reveals features of these mutual payment systems, analyzes their contribution to the servicing of mutual trade turnover (noted such a feature of existing systems as their centric organization). The role of these systems in stimulating the use of national currencies by economic entities has been determined. It is indicated that the dedollarisation processes are closely related to the development of cross-border payments and the achievement of certain agreements on the development of a common payment space among countries of the same region that have economic ties, first of all active mutual trade. Based on the model and data on mutual trade turnover and the currency structure of settlements of the Eurasian Economic Union countries given Latin American, African and Asian experience, it forecasts an increase in the share of their national currencies in the servicing of mutual trade in goods and services.

A highway across the Atlantic? Trade and welfare effects of the EU-Mercosur agreement

In this paper we analyze the EU-Mercosur agreement and predict its effects on trade and welfare using a general equilibrium structural gravity model. First, we exploit the detailed provision-level information available for the EU-Mercosur agreement to identify partial equilibrium trade effects of existing treaties with similar set of provisions. In a second step, the estimated increase in trade is mapped into reductions in bilateral trade costs and imputed to EU-Mercosur country pairs to compute the general equilibrium effects of the agreement in terms of trade creation, trade diversion, and welfare effects. Our results indicate that the positive effects on trade and welfare stemming from the EU-Mercosur agreement are likely to be economically important, especially for Mercosur countries, and substantially heterogeneous both between and within the two blocs.

Dynamic Amazonia: The EU–Mercosur Trade Agreement and Deforestation

The trade agreement between the European Union and the Mercosur countries will increase deforestation in the Mercosur countries and Brazil, in particular, if ratified by member countries. We use a computable general equilibrium model to analyze how trade, land use, and agricultural production will change as a result of the agreement. We then use a statistical model to spatially allocate the predicted deforestation within the Brazilian Amazon. The models estimate that the agreement will cause additional deforestation in Brazil ranging from 56 to 173 thousand ha to accommodate increases in cropland area, depending on the level of governance, use of double-cropping techniques, and trade elasticity parameters. Most additional deforestation in Amazonia would be clustered near current deforestation hotspot areas. Some hotspots threaten the integrity of Indigenous lands and conservation units. Although a low deforestation scenario with gains in welfare is theoretically possible when high governance and multiple-cropping systems are in place, political challenges remain and cast doubt on Brazil’s ability to rein on illegal deforestation.