Mercosul Faces Crucial Redefinition Amid Global Changes

SÃO PAULO, Brazil — The Mercosur trade bloc is at a critical juncture, facing the need for a new pact to avoid being overshadowed by the United States, according to Flavia Loss de Araujo, coordinator of the postgraduate program in Politics and International Relations at the Fundação Escola de Sociologia e Política de São Paulo (FESPSP) and a professor at the Instituto Mauá de Tecnologia.

This assessment was made during her appearance on WW Especial with William Waack, where they discussed the impacts of Donald Trump‘s diplomacy on Latin America.

Araujo emphasized that Mercosur was established in the 1990s, during a time of emerging globalization and a push for multilateralism. However, she noted that international dynamics have changed significantly since then. “We invested in Mercosur, the WTO [World Trade Organization], to engage in discussions multilaterally, but the world has changed,” Araujo stated.

The researcher recalled concerns surrounding the Free Trade Area of the Americas (FTAA), a proposal that anxious many South American nations. “In the case of FTAA, there was significant opposition. Even the government of Fernando Henrique Cardoso was against it,” she explained, highlighting a cautious approach to negotiations during that administration.

With the transition to President Lula‘s administration, Brazil’s stance on the FTAA became more assertive, as the main fear was that the Brazilian market could be ‘overwhelmed’ by foreign products, threatening local industry.

Araujo stressed that Mercosur is still trying to balance economic development with the protection of its hard-earned gains. “We have yet to solve this equation: how to manage this situation as a country that exports commodities, while shifting our orientation to foster development without losing what we have achieved through great effort,” she concluded.

The current challenge for Mercosur, therefore, is to adapt to the new global realities while maintaining its relevance and protecting the interests of its member countries. The program, hosted by William Waack, airs Sundays at 10 p.m. across all CNN Brasil platforms.

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