from last July published by COHA.
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...Bolivia Proposes CAN-MERCOSUR Union
President Evo Morales of Bolivia, now a close friend of Chávez and Castro, attended the MERSOSUR summit as a representative of his associate member nation and proposed linking the Andean Community with MERCOSUR. This possibility will depend largely on the group’s decisions regarding integration with the United States. Presently, the CAN countries are hesitant to join with Washington in a coherent integration plan beyond the preferential tariff rates offered by the U.S. under the terms of the Andean Trade Promotion and Drug Eradication Act (ATPDEA), set to expire on December 31. This preferential treatment accord is unlikely to be extended given Bolivia’s recent nationalization of its energy resources and what Washington perceives as other damaging economic decisions coming from La Paz and Quito. In the absence of the ATPDEA, MERCOSUR might more readily entertain proposals to form a multilateral agreement with CAN. This window of opportunity for these two important South American blocs may be fleeting as U.S. officials hope to wrap up bilateral trade agreements in short order with Columbia and Peru. Nearby Bolivia, still free from binding agreements with the United States, made it clear in Córdoba that it would rather see the group create ties with MERCOSUR, in which heads of state wholeheartedly supported solidarity for a united “Mercoamerica” (Lula).
...MERCOSUR Turning to Europe?
Little discussion of Europe was heard in Córdoba, but previous dialogue has made it clear that MERCOSUR prefers to pursue greater global integration via the European Union (EU) rather than the United States. Although representatives of the two trade bodies have been largely unsuccessful in producing any real progress since their first meeting in 1999, they continue to look for ways to overcome persisting differences. These questions have mainly concerned MERCOSUR’s remaining internal tariffs and the EU’s unyielding agriculture protection measures. Since MERCOSUR’s heavies refuse to continue negotiations toward an FTAA, their persistence with EU negotiations reveals a clear preference for Europe over Washington. Still, greater integration will likely come about first within the hemisphere, especially as ties with Cuba and Mexico came to the forefront last week in Córdoba.
MERCOSUR’s Future
After a short two days in Córdoba, MERCOSUR has clearly emerged as the regional counter-weight to U.S. preeminence in South America’s economic development and trade relations. With the formal inclusion of Venezuela and movements made to dispel rumors that Paraguay and Uruguay are disgruntled with the group to the point of abandonment in favor of U.S. ties, MERCOSUR is poised to foster South American solidarity without acquiescing to Washington’s hopes for a hemispheric FTAA. Indeed, the MERCOSUR leaders spoke of improving internal relations and expanding their ranks with more like-minded partners such as Cuba, Mexico and the Andean Community, as well as integrating non-governmental groups, to address not only economic development, but also to merge the bloc politically — a feat that is indicative of a lasting, deepening and more mature alliance.
http://www.coha.org/2006/07/25/coha-report-mercosur-presidential-summit-concludes-with-high-hopes/