Mercosur's role in Latin American economic and political consolidation

Mercosur: Regional Integration, World Markets

In his work Mercosur: Regional Integration, World Markets the author discusses important components of Latin America's strategy for "achieving economic and political consolidation."

The author discusses the Mercosur agreement, the primary focus of the book, as a sign that Latin America is progressing toward consolidation economically and politically.

In Chapter 1 the author discusses the origins of the common market of the South (Mercosur). Here the goal of implementing Mercosur is discussed, including plans for integrating Latin America and sharing interregional trade with more exports and greater cooperation among firms. The chapter discusses multiple free trade agreements with Mercosur and the agenda for implementing the common market, which according to the author is still pending.

In Chapter 2 the author talks about Brazil's involvement in Mercosur as well as the integration process that this country will play in facilitating the goals of Mercosur.

Factors that shape Brazil's relationship with Mercosur are covered as well as Brazil's negotiating position with Mercosur. The author suggests that the economic benefits Brazil will derive from Mercosur are limited but vital nonetheless to the economies well being.

Chapter 3 focuses on the motivation for Mercosur, including economic integration. Specifically the author discusses the relationships among countries in Latin America before Mercosur. The author points out fragmentary and integrative forces affecting the politics of Mercosur including interregional trade, investment and spillover effects from integration.

Chapter 4 focuses on the ability of Mercosur to strike balance in Latin America. Particularly the author concentrates on defining the point of balance between "broadening and deepening in any particular moment in a process of integration" like Mercosur offers. The author suggests Mercosur's future agenda will be broad ranging and deep comprised of multiple elements and voluntary integration processes among member nations. Further the author argues that much still needs to be done for Mercosur to succeed in a common market.

Chapter 5 covers industrial policy related to Mercosur. The author suggests that Mercosur "represents an auspicious and original experience with the formation of a mixed economic bloc made up of economies not fully developed."

Chapter 6 highlights external trade negotiations with the common market by discussing the agenda of external trade negotiations. This includes synopsis of pre-exiting agreements with other members of the integration association of Latin America. The author also reviews external trade negotiations after creation of the customs union.