MERCOSUR detrimental to Brazil in past decades – Economy Minister

RIO DE JANEIRO, BRAZIL – Brazil’s Economy Minister Paulo Guedes, on Tuesday, June 8, said that MERCOSUR membership has been detrimental to Brazil. In his opinion, membership in the bloc has halted the country’s market expansion.

“Being united [in MERCOSUR] has damaged Brazil in the past 30 years. Brazil is trading less with our MERCOSUR partners today than it did 20 years ago. It was a trap. It prevented Brazil from engaging in a more productive industrial integration in global chains,” he said during Bradesco BBI’s online conference in London.

Guedes stressed that Brazil intends to “unilaterally” reduce import tariffs. “And also through dialogue with our MERCOSUR friends, because we want to promote flexibilization and modernization in MERCOSUR,” he said.

The Minister again advocated Brazil’s accession to the Organization for Economic Cooperation and Development (OECD) and stated that the government is implementing all measures to adapt to the rules imposed by the bloc.

Founded in 1961 and headquartered in Paris, the OECD is an international organization comprising 36 countries, including some of the world’s leading developed economies, such as the United States, Japan, and the European Union. It is seen as a “rich man’s club,” but also has among its members emerging Latin American economies such as Mexico, Chile, Colombia, and most recently, Costa Rica.

Environmental issues

During his speech at the conference, Paulo Guedes said that it is clear to the government that the future is digital and green, but acknowledged that Brazil is facing challenges in the environmental area.

He also said that the federal government has been in close contact with the United States government’s presidential climate envoy, John Kerry. The U.S. has come to lead the debate on the environment in the international sphere.

“It is true that we have problems with deforestation, with illegal land occupation, and we are very aware of this. In the past three months, we have been in close contact with Mr. Kerry, who is the man appointed by [U.S. President Joe] Biden to address environmental issues with Brazil.”

Source: Agência Brasil