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Apr
14

Venezuela Was Suspended From The Common Market Agreement Of

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Following the agreement between Presidents Maduro and Santos, five border crossings were opened to pedestrians. Member States may have free trade zones, industrial free trade zones, export processing zones and specific customs territories that aim to supply goods marketed or produced in these territories with different treatment than their respective customs territories. [Citation required] Danilo Astori, Vice-President of Uruguay, said that the issue of a free trade agreement with the United States needed to be addressed and that “opportunities must be created.” He also said that “every Mercosur country should have a large number of accessions. Mercosur must have a common international policy, a moderate protection agreement against third parties and, above all, agreements with other trading blocs. [47] In 2016, Brazilian President Dilma Rousseff, then Michel Temer, and Argentine President Macri, began pushing to negotiate a free trade agreement between Mercosur and the European Union and other Latin American nations. [60] In June 2019, the free trade agreement between the European Union and Mercosur was confirmed. [61] The bilateral trade agreement opens up 100% of EU trade and 90% of Mercosur`s trade. [62] However, the agreement has yet to be ratified. In August 2016, the presidents of Brazil, Argentina and Paraguay attended the Olympic Games in Rio de Janeiro to discuss Venezuela`s suspension from Mercosur. The three countries doubted that Venezuela would meet the EU`s requirements for full membership, including by citing human rights violations.

[26] Indeed, Venezuela was rejected by these three countries when Mercosur took over the presidency, resulting in a dispute that lasted until the end of the year. [Citation required] Differences of opinion between Venezuela and other member countries have worsened, with Venezuela`s time to take over as chairman of the trade bloc in August. Mercosur`s presidency changes in alphabetical order every six months, and on 1 August Uruguay was to give Venezuela the leadership role, but this measure was met with strong opposition from the presidents of Argentina, Brazil and Paraguay. Although it began with only four countries, the members hoped that the organization could be a possible springboard for the integration of all of South America. As expected at the time of its creation, Mercosur would gradually reach the stages of creating a common market according to the image of the European Union. The plans called for the creation of a common tariff (CET) and the free movement of goods, services, currencies and people among members. The union even considered the creation of a common currency, the gaucho, although this idea was later rejected. In reality, the scope of the bloc often falls short of certain objectives and the group has not yet formed a common market as planned.

The development of Mercosur was probably weakened by the collapse of the Argentine economy in 2001, and there have always been internal conflicts in trade policy between Brazil and Argentina, Argentina and Uruguay, Paraguay and Brazil, etc. In addition, many obstacles need to be addressed before the development of a common currency within Mercosur. [50] In addition to the permanent members, Chile, Colombia, Ecuador, Guyana, Peru and Suriname are associate members. Associate members are not members of the customs union and do not have voting rights in Mercosur`s political bodies, although they have preferential access to the market. Mercosur`s observer countries are Mexico and New Zealand. Mercosur countries also failed to coordinate their trade policy vis-à-vis third countries.

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