30 Years of Mercosur – Integration Progress, Failures, and Future Trade Policy

Thirty years after its founding, the conclusion on Mercosur's integration progress is mixed. While trade liberalization within Mercosur can be considered a success, the goals of transformation into a customs union and deeper integration steps have been missed. The importance of intra-Mercosur trade has returned to its initial level, and integration into international production networks has succeeded only in places. High MFN tariffs and non-tariff trade barriers within the region, as well as the lack of trade agreements, make it difficult for the Mercosur states to integrate into global trade. The successful ratification of the trade agreement between the EU and Mercosur would, on the one hand, once again make the advantages of Mercosur visible to its member states. On the other hand, the agreement may help intensify global or regional value chains in the South American region and reduce China’s current dependence in the primary sector.