1-3 of 3 Results

  • Keywords: interregionalism x
Clear all

Article

Integration attempts in Latin America have historically been linked to the European experience. Transatlantic influence has gone from policy learning through institutional mimicry to direct funding. Modern Latin American regionalism dates back to 1960, when the Central American Common Market and the Latin American Free Trade Association (LAFTA) were founded. Both associations were a response to the creation of the European Economic Community in 1957 and the fear that “Fortress Europe” would cut extra-regional markets off, so alternatives should be developed. The Latin American blocs aspired to overcome the small size of the national markets by fostering economies of scale. Shortly thereafter, European-born, U.S.-based political scientist Ernst Haas—jointly with Philippe Schmitter—put to the test the neofunctionalist theory he had developed for Europe to analyze Central American integration, correctly diagnosing the latter’s limitations and forecasting its setbacks. LAFTA also faltered and failed and, in 1980, the Latin American Integration Association (ALADI by its Spanish acronym) replaced it. A decade later, ALADI would become MERCOSUR’s umbrella organization. After the third wave of democratization, which in Latin America started in 1978, new attempts at regional integration took hold, and MERCOSUR was initially considered as the most successful. Successive leaders of the European Union (EU) nurtured big hopes and devoted a great deal of attention to EU–MERCOSUR relations, first assisting with integration technology, material resources, and intellectual guidance and, since 1995, conducting several rounds of negotiations to strike a trade deal. The path that had led to MERCOSUR resembled that of the EU, as it started in 1985 with functional and sectoral integration (wheat and oil prominently, in place of coal and steel) around the Argentina–Brazil axis. A few years later, in 1991, the binational association was opened up to Paraguay and Uruguay and transformed itself into a typical Balassa-like organization, prioritizing broader market integration over focused sectoral integration—just like the Treaty of Rome had done in Europe. Intra-regional trade tripled during the first seven years, but it later stagnated and never bounced back. As a result, the member states decided to up the rhetorical ante and broaden the areas encompassed by the organization rather than fostering economic interdependence or deepening the level of regional authority. An optional tribunal and a powerless parliament were established in 2002 and 2005 respectively. The outcome was grim: more institutions on paper did not enhance performance in practice. Having exhausted the internal agenda, the external agenda remained the only one where positive developments were still expected. In 2019, after twenty years of bumping negotiations, a political agreement on a comprehensive trade deal was reached with the European Union, MERCOSUR’s role model and largest trade partner. If this agreement is signed and ratified, it will become the largest interregional arrangement ever.

Article

Since 1957, the European Union (EU) has been a constant and reliable partner of Latin America, on the one hand, and the Caribbean, on the other. It still offers a unique model of idealist interregionalism based on the promotion of its own integration model, combined with limited economic interests, soft power and, more recently, shared global visions such as sustainable development, Compared with the two bigger external actors, the United States and China, the EU is a normative actor that complements and sometimes counterbalances (in the cases of Brazil, Cuba, and Mexico) relations with the dominant power. Although, in relative terms, trade exchanges have declined since the 1990s, Latin America and the EU share a solid network of multilevel and contractual relations integrated by political dialogue, development cooperation, and investment flows. The EU signed free trade agreements plus (dialogue and cooperation) with Chile, Colombia, Ecuador, Mexico, Peru, the Caribbean, and Central America. In June 2019 finalized a twenty year process of free trade negotiations between the EU and MERCOSUR. Once in force and approved by EU institutions and the four South American states, the EU-MERCOSUR association agreement will reactivate trade exchange grounded on economic, political, social and cultural cooperation between state and non-state actors. Nonetheless, it remains unclear if the 32 states involved in the mixed agreement (European Commission’s exclusive trade competences plus EU member states) will approve the deal in a foreseeable future.

Article

In 1991, the Southern Common Market (MERCOSUR) was launched with the aim of fostering regional integration among its four original members—Argentina, Brazil, Paraguay, and Uruguay. MERCOSUR evolved from open regionalism to postliberal regionalism in the course of the first 15 years of the 21st century. The organization has faced several challenges since its inception: internal struggles that result from significant asymmetries between members as well as underlying deficits in the regionalism process and external difficulties in managing MERCOSUR’s relations within the hemisphere and beyond (such as relations with the European Union and China).