brazil’s bilateral and plurilateral trade agenda
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Brazil’s Bilateral and Plurilateral Trade Agenda
Trade relevant facts(2003)
Annual export: USD 83 bio ~ 1,2% of world tradeIndustrial exports amount to ~ 60% of Brazil’s total exportsAgricultural exports amount to ~ 40% of Brazil’s total exportsRanks third in world share of total agricultural exports3% of world’s population, GDP and investments7th biggest consumer in the world15th biggest economy in the worldOne of the BRICs
Context for RTAs post-1985
Democratization
”Lost decade”
Liberalization
International insertion
1985-today
Plurilateral
MERCOSUR (1991)
Bilateral
MERCOSUR-Bolivia Association Agreement (1996)
MERCOSUR-Chile Association Agreement (1996)
Ongoing negotiations
Bilateral MERCOSUR-EU MERCOSUR-SACU MERCOSUR-
Colombia, Venezuela, Ecuador
MERCOSUR-Peru MERCOSUR-Mexico MERCOSUR-India MERCOSUR-Egypt
Plurilateral FTAA
EU-MERCOSUR and FTAA
Background
Issues
Threats & Opportunities
Status
Link to Doha Development Agenda
Trade relations(2003)
Export Import Industrial share
Agricultural share
EU ~22% ~24% ~50%
FTAA ~55% ~ 50% ~70%
Timeline
Preparatory phase
FormalLaunch
Conclusion EiF
FTAA 1994-1998 1998 01.05 12.05
EU-MERCOSUR
1995-1999 1999 10.04
Issues
One (FTAA) vs. three (EU-MERCOSUR) pillars
All WTO-trade areas on the table
Labour and environment excluded
Scope differs
Political and strategic threats
EU-MERCOSUR Negotiation is test
case for MERCOSUR
Future policy autonomy
Compromising perception of Brazil as developing country leader
FTAA Negotiation is test
case for MERCOSUR
Can MERCOSUR survive in an FTAA?
Future policy autonomy
Brazil isolated in its ”own region”
…and opportunities
EU-MERCOSUR Institutional
strengthening of MERCOSUR
Power equilibrium
FTAA Lock-in of reforms at
national level
Socio-economic threats
EU-MERCOSUR Erosion of gains vis-
à-vis the WTO Limited gains in
industry ”Sensitive issues”
FTAA Erosion of gains vis-
à-vis the WTO Limited gains in
agriculture ”Sensitive issues”
…and opportunities
EU-MERCOSUR Increased
agricultural exports Increased
investments
FTAA Increased industrial
exports to the US Increased
investments ”Investment
guarantee” Protection of
preferential access to US market
Status
EU-MERCOSUR Exchanging offers Possibility of meeting in
October New Commission Probable extension of
deadline What happens in the
WTO?
FTAA Standstill: Offers and
modalities New president No new meeting
scheduled Extension of deadline Bilateralisation within the
negotiation What happens in the
WTO?
Link to the WTO
Timing
Issues
Alliances
Concessions
Future perspectives
Conclude ongoing pluri- and bilateral negotiations?
Initiate new bilateral negotiations? MERCOSUR-Central America MERCOSUR-Japan MERCOSUR-China MERCOSUR-South Korea MERCOSUR-Thailand MERCOSUR-Russia MERCOSUR-Morocco
Conclusions
2003-2004: Mixed results for Brazil’s regional and multilateral negotiationsBilateralization of trade agreements in the Western HemisphereIncreased focus on South-South bilateral trade agreements combined with a wait-and-see approach concerning the FTAA and EU-MERCOSUR negotiationsSouth-South trade cannot in the short run replace US and EU, but importance has increased, both economically and strategicallyComplementary strategy is still needed
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