Latin America

Brazil gets Argentina to compromise on Mercosur tariffs

In a meeting that didn't include Economy Minister Paulo Guedes, Brazil and Argentina reached a deal which breathes new life into Mercosur

brazil argentina mercosur
Argentinian Foreign Minister Santiago Cafiero speaks at the Brazilian Foreign Affairs Ministry. Photo: André Spigariol/TBR

They say you can catch more flies with honey than with vinegar. And when it comes to foreign policy, that’s one of the reasons diplomats exist. Since taking office in April, Foreign Minister Carlos França has engaged in a results-first-ideology-later approach to international relations. As we will explain in an upcoming article, that includes a ceasefire in verbal attacks against authoritarian left-leaning regimes in Latin America — in order not to upset China and, as a consequence, agricultural producers.

That also includes shifting from a confrontational relationship with Argentina — Brazil’s main regional partner — to a more collaborative way to handle business. On Friday, during a visit of Argentinian Foreign Minister Santiago Cafiero to Brasília, the two countries announced they had reached a compromise on lowering the common external tariff (TEC) of Mercosur, the trade alliance between Argentina, Brazil, Paraguay, and Uruguay.

According to Mercosur rules, all member countries must enforce the same levies on imports and any change must be agreed upon by the entire group. For the past couple of years, debates regarding the TEC had soured relationships within the bloc, with Argentina standing as the sole opponent to trade liberalization.

Apparently, the left-leaning administration of Alberto Fernández has warmed to the issue. In a meeting with Mr. França, Foreign Minister Cafiero and Productive Development Minister...

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