Abstract

ENCISO CANO, Víctor Ramón. Evaluation of the commercial impact of raw materials: a look at the Regional partnership agreement between the European Union (EU) and the MERCOSUR. Investig. Agrar. [online]. 2016, vol.18, n.2, pp.61-69. ISSN 2305-0683.  https://doi.org/10.18004/investig.agrar.2016.diciembre.61-69.

The European Union (EU) and the Southern Common Market (MERCOSUR for its Spanish acronym) have been negotiating since the mid-nineties, to no avail, the signature of a bi-Regional partnership Agreement (AAR). The possible effects of the AAR on the MERCOSUR have been widely studied. Most of the studies agree that the agreement would be beneficial for both parties, and that in the specific case of Mercosur, the agreement would strengthen its comparative advantages.

The aim of this work is, however, to show that the implementation of the agreement would condemn the Mercosur countries to remain forever as exporters of agriculture raw material and manufactured goods with low added value, which is indeed, the block´s main competitive advantages. In this context, the agreement will leave the MERCOSUR countries with scarce or no opportunity to develop industries with higher added value. This paper concludes that the Agreement will favor the export of products in which the MERCOSUR has already had competitive, which implies that MERCOSUR will remain as an exporter of agricultural commodities and producer of low added value manufactures.

Keywords : MERCOSUR; UE; commercial agreements; raw material; trade impact.

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