MERCOSUR: Integration Deepens, Although Andean Expansion Stalls

By Mario Osava Reprint | | Print |

Mario Osava

RIO DE JANEIRO, Dec 12 1996 (IPS) - Brazil will ended its six-month presidency of the Mercosur in Fortaleza Monday, celebrating subregional integration “far beyond the economic,” but with the Andean Community agreement at a standstill.

The two contrasting elements show the separate Andean and Southern Cone circles forming within South America, both of which have the political will to make free trade a reality, but working to different deadlines.

Brazil’s President Fernando Henrique Cardoso highlighted the mass of protocols which will be signed at the Fortaleza Summit early next week, unifying many of the consumer rights, environmental and defence of competition measures in the Southern Cone Common Market (Mercosur) countries.

As far as retirement pensions are concerned, the Mercosur becomes one single territory, joining the contributions paid by any indivudual who has worked in more than one of the four countries.

Another agreement will link cities within the bloc, and in Bolivia and Chile, with direct flights.

The Mercosur has now gone further than the merely commercial level, passing on “to a stage of greater diversification in other areas of integration,” said Jose Botafogo Gonzalves, economy and integration officer in the Brazilian Foreign Office.

In economic terms, the bloc is already practically consolidated, and the next step is to deepen cultural and social links, said presidential spokesman Sergio Amaral.

This issue will be attended to in a seminar of regional intellectuals to be held Friday and Saturday in Fortaleza, prior to the summit.

“The Mercosur and South American integration, beyond the economy” is the title of the meeting between anthropologists, economists, sociologists, historians and reporters from Argentina, Brazil, Paraguay, Urguay, Bolivia and Chile.

The summit will formalise the agreement of Bolivia’s association to the Mercosur, forming a bridge between the Andean and Atlantic nations.

But this is not a decisive move towards the formation of the Free Trade Area of South America proposed by Brazil, although if Venezuela would sign up the list would be complete.

Bolivia and Chile will not enter the customs union, as this would imply a common foreign trade policy, and they thus remain outside many of the Mercosur agreements. The case would be the same with the Andean nations if free trade between the two blocks is agreed.

The two subregions have already developed strong independent identities – while the six Andean countries have named themselves a Community, the Mercosur recently adopted a logo to represent its image, products and own identity.

The culture of the nations and the geographical distances between the large economic and population centres of the two blocks have contributed to integration occuring in less concentric circles than were hoped for by the Brazilian diplomats.

The first film coproductions between Brazil, Argentina and Uruguay have already been completed, while cities like Porto Alegre, Montevideo and Buenos Aires are increasing their interaction.

The first Mercosur Arts Biennial has been set for October 1997 in Porto Alegre, hosted by the Rio Grande do Sul state government and a foundation of Brazilian private companies. The event will include the participation of Venezuela, as well as the Southern Cone.

Brazil plays a vital role in linking the two processes, due to its economic importance, its frontiers with practically all the other South American nations and its strategy of linking the as many Latin American nations as possible in order to negotiate better conditions when integrating with North America.

This is becoming a race against time, said Jose Coelho Fernandes, director of Brazil’s National Confederation of Industry.

For while US President Bill Clinton cannot get Congress authorisation for fast-track trade agreements with Latin American nations, the Mercosur and Latin America are getting stronger.

This situation has led to nations like Chile opted for the Mercosur, when, in other circumstances, they would have preferred the North American Free Trade Area (NAFTA), of Canada, Mexico and the United States.

The closer relations with the Andean Community to be sealed in Fortaleza – in a draft document promoting free trade negotiations – will further strengthen the Brazilian and South American platform in the Free Trade Area of the Americas meeting planned for Belo Horizonte, Brazil next May.