Mercosur “is not going through its best moment” and the bloc may take a “step back.”
This is the assessment of international analyst Gustavo Segré.
Last week, Uruguay presented the term of adhesion to the Trans-Pacific Agreement, a free trade treaty that includes countries in Asia, Oceania and America.
The document does not take into account the warning by Brazil, Argentina and Paraguay about possible retaliation against the country in case of negotiation of trade terms outside Mercosur.
THE CNN Radio Segré explained that Mercosur as a whole “left something to be desired”, with only four agreements signed in 30 years.
“This situation in Uruguay could affect local politics, with China controlling a port in the region,” he said.
According to the expert, two situations can happen in this scenario.
“Mercosur could ‘explode’, which is more difficult, but, more than that, it could revert to a free trade zone”, he explained.
The second option would be “a step backwards”, as each country could freely enter into bilateral agreements, while maintaining import and export benefits.
Everything depends, for Segré, on the meeting of the Summit of Heads of State of Mercosur and Associated States, which takes place this Tuesday (6th), in the city of Montevideo, Uruguay.
The analyst defends that retreating is better than ending the block, which, for him, “is very valuable, even with deficiencies”.
*Produced by Isabel Campos
Source: CNN Brasil

A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.