Latin America

Brazil and Argentina sour Uruguay plans with Mercosur tariff cuts

Uruguay wants to negotiate its own trade deals, independently of Mercosur. But Brazil and Argentina have other plans

mercosur tariffs
Presidents Luis Lacalle Pou of Uruguay (left) and Jair Bolsonaro of Brazil, during a meeting in Brasília. Photo: Marcos Corrêa/PR

The Brazilian government announced a broad and unilateral 10-percent cut on import levies under the Common External Tariff (TEC) of Mercosur, the trade alliance which also includes Argentina, Paraguay, and Uruguay. The reduction will cover 84 percent of imported products into Brazil under the TEC and advance a deal between the two countries celebrated in October.

The move marks enhanced cooperation between Presidents Jair Bolsonaro of Brazil and Alberto Fernández of Argentina — a duo that not long ago threw epithets at each other such as “fascist” or “thief.”

The matter still depends on consensus between other Mercosur members...

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