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Economy & Business - October 2019

Doubts over Mercosur

There are two stories to be told about the Southern Common Market trade bloc comprising Brazil, Argentina, Paraguay and Uruguay (Mercosur) right now. One is positive: having signed an historic free trade agreement (FTA) with the European Union (EU) earlier this year, the trade bloc has since reached a further deal with the European Free Trade Association (EFTA) and is pursuing yet another with South Korea. The other is negative. There are internal political problems, a major dispute over environmental protection of the Amazon, and doubts about EU ratification. The bottom line looks like an uncomfortable mix between these two narratives.

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