Mercosur in Turmoil: Brazil Challenges U.S.-Argentina Trade Deal
Brazil is scrutinizing a trade agreement between the U.S. and Argentina, suspecting it violates Mercosur's trade restrictions. Argentina claims the deal falls within permitted exemptions, but Brazil argues it might cover more items than allowed. The Mercosur Council may need to address the issue soon.
Brazil is raising concerns over a trade deal announced between the United States and Argentina, fearing it breaches the South American trade bloc Mercosur's rules, as sources informed Reuters. Brazilian diplomats are reviewing the agreement, with indications it might surpass the bilateral limits set by Mercosur members.
Argentina was previously allowed exceptions to Mercosur's common external tariff, sparking criticism from Brazil regarding the quantity of items covered in the new deal. Brazilian officials argue the agreement seems to include around 200 items, exceeding the allotted 150 exceptions. Argentine officials, however, assert the reductions align with the existing exceptions.
Complications arise from Mercosur's non-tariff principles such as rules of origin, adding another layer of complexity to the U.S.-Argentina pact. Argentine President Javier Milei's unilateral negotiations with the U.S. prompt questions about whether this deal can be reconciled with previous exemptions. The matter is escalating toward the Mercosur Council's intervention.
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