Mercosur - Changing Course?
Excerpts
Background Note
Creation of Mercosur: The Initial Years
As Brazil and Argentina were progressing on the path toward a common market with closer economic and political cooperation, Uruguay and Paraguay, their smaller neighbors also joined in. Thus, with the signing of the Treaty of Asuncion, in Paraguay, on March 26, 1991, Mercosur was formed. .........
Mercosur: An Incomplete Customs Union
Although Mercosur achieved remarkable progress in the first four years, there were several aspects of the FTA that were left unfinished. Several rules made at Mercosur to move towards integration remained on paper and were not incorporated into the national laws of the member states. After 1995, Brazil and Argentina in particular, showed increasing reluctance to work towards dismantling the remaining tariff and other non-tariff barriers and harmonizing macro economic policies, and instead resorted to rhetoric regarding the virtues of strengthening Mercosur. Integration was no longer a driving force among the major partners as a priority in their economic agenda. As a result the process of regional integration took a back seat..........
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