Mercosur - Changing Course?




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Earlier, Mercosur had suspended trade negotiations with the US, citing its reluctance to lift agricultural subsidies. The Uruguayan Foreign Minister Reinaldo Gargano7 later denied his country's interest in separate trade talks with the US, but his hint succeeded in alarming Argentina and Brazil.

The presidents of these countries both realized it was time to address the concerns of the other two small members. Argentine President Nestor Kirchner said, "The benefits cannot go only one way. Mercosur must also be bloc of mutual assistance for balanced development."8

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In a similar vein, his Brazilian counterpart Luiz InĂ¡cio Lula da Silva agreed that Brazil and Argentina must shoulder their responsibility in the process of regional integration and "be generous with our small brothers."9........

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