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2017 | OriginalPaper | Chapter

6. MERCOSUR

The Ups and Downs of Regional Integration in South America

Author : Katharina L. Meissner

Published in: Regional Integration in the Global South

Publisher: Springer International Publishing

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Abstract

Brazil is one of the global market’s rising powers and it increasingly engages in global governance. Next to its international visibility, Brazil is the regional power of South America and therefore its contribution to the Common Market of South America (MERCOSUR) is crucial for the success or failure of regional integration. Yet, Brazil is the country in MERCOSUR for which extra-regional economic relations with the EU and the USA are most important compared to its regional neighbours Argentina, Paraguay and Uruguay. As a result of these extra-regional interests, Brazil’s behaviour towards MERCOSUR is volatile. It swung from cooperation during the early 1990s to defection from regional integration at the turn of the millennium. After this defection, MERCOSUR’s regional integration stagnated, and Brazil started to cooperate outside of the regional organization by establishing UNASUR and by launching a Strategic Partnership with the EU. This chapter explains why Brazil initially pushed the establishment of MERCOSUR’s customs union, but then devalued its currency unilaterally and refused any kind of monetary coordination in the face of the Argentinean crisis in 1999. Brazil’s behaviour during that crisis provoked long-term problems for regional integration in MERCOSUR which could not regain the dynamic it had during the 1990s.

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Metadata
Title
MERCOSUR
Author
Katharina L. Meissner
Copyright Year
2017
Book
Regional Integration in the Global South

Print ISBN: 978-3-319-38894-6

Electronic ISBN: 978-3-319-38895-3

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-38895-3_6