EU-MERCOSUR Interregionalism: Diplomatic and Trade Relations

214 Pages·2023·4.634 MB·English

by  Mario Torres Jarrín, Lourdes Gabriela Daza Aramayo

United Nations University Series on Regionalism 21
Mario Torres Jarrín
Lourdes Gabriela Daza Aramayo
EU-MERCOSUR
Interregionalism
Diplomatic and Trade Relations
United Nations University Series on Regionalism
Volume 21
SeriesEditors
Philippe De Lombaerde, NEOMA Business School, Rouen (France) and
UNU-CRIS,Brugge,Belgium
LukVanLangenhove,VrijeUniversiteitBrussel(VUB),Brussels,Belgium
UNU-CRIS,Bruges,Belgium
GlennRayp,GhentUniversity,Bruges,Belgium
EditorialBoardMembers
LouiseFawcett,OxfordUniversity,Oxford,UK
SieglindeGstöhl,CollegeofEurope,Bruges,Belgium
HenrykKierzkowski,GraduateInstituteofInternationalandDevelopmentStudies,
Geneva,Switzerland
FukunariKimura,KeioUniversity,Tokyo,Japan
EdwardD.Mansfield,UniversityofPennsylvania,Philadelphia,PA,USA
T.AdemolaOyejide,UniversityofIbadan,Ibadan,Nigeria
JacquesPelkmans,CollegeofEurope,Bruges,Belgium
JoaquinRoy,UniversityofMiami,Miami,FL,USA
RamónTorrent,UniversityofBarcelona,Barcelona,Spain
TheUnitedNationsUniversitySeriesonRegionalism,launchedbyUNU-CRISand
Springer,offersaplatformforinnovativeworkon(supra-national)regionalismfrom
a global and inter-disciplinary perspective. It includes the World Reports on
Regional Integration, published in collaboration with other UN agencies, but it is
also open for theoretical, methodological and empirical contributions from aca-
demicsandpolicy-makersworldwide.
BookproposalswillbereviewedbyanInternationalEditorialBoard.
Theserieseditorsareparticularlyinterestedinbookproposalsdealingwith:
– comparativeregionalism;
– comparativeworkonregionalorganizations;
– inter-regionalism;
– theroleofregionsinamulti-levelgovernancecontext;
– theinteractionsbetweentheUNandtheregions;
– theregionaldimensionsofthereformprocessesofmultilateralinstitutions;
– the dynamics of cross-border micro-regions and their interactions with supra-
nationalregions;
– methodologicalissuesinregionalismstudies.
Accepted book proposals can receive editorial support from UNU-CRIS for the
preparationofmanuscripts.
Please send book proposals to: [email protected] and
[email protected].
(cid:129)
Mario Torres Jarrín
Lourdes Gabriela Daza Aramayo
EU-MERCOSUR
Interregionalism
Diplomatic and Trade Relations
MarioTorresJarrín LourdesGabrielaDazaAramayo
InstituteofEuropeanStudiesand Anglo-AmericanUniversity
HumanRights Prague,CzechRepublic
PontificalUniversityofSalamanca
Salamanca,Spain
ISSN2214-9848 ISSN2214-9856 (electronic)
UnitedNationsUniversitySeriesonRegionalism
ISBN978-3-031-19216-6 ISBN978-3-031-19217-3 (eBook)
https://doi.org/10.1007/978-3-031-19217-3
©TheEditor(s)(ifapplicable)andTheAuthor(s),underexclusivelicensetoSpringerNatureSwitzerland
AG2023
Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether
thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseof
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by
similarordissimilarmethodologynowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication
doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant
protectivelawsandregulationsandthereforefreeforgeneraluse.
The publisher, the authors, and the editorsare safeto assume that the adviceand informationin this
bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor
theeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany
errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional
claimsinpublishedmapsandinstitutionalaffiliations.
ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG
Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 EU-LACInterregionalismHistory:FromaDiplomatic
Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1 EU-LACInterregionalismHistory:FromMartinoReport
toEU-CELACSummit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1.1 EECCouncil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1.2 SELACouncil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2 StateoftheArtoftheEU-LACInterregionalism. . . . . . . . . . . . . 23
2.3 ConceptualisationoftheEUExternalActionstoLACRegional
IntegrationOrganisations. . . . . . . . . . . . . .. . . . . . . . . . . . .. . . 25
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3 GeopoliticalAspectsinEU-LACInterregionalism. . . . . . .. . . . . .. 31
3.1 TheBrexitProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2 StagnationofTransatlanticRelationshipEU-USA. . . . . . . . . . . . 35
3.3 TheCOVID-19Pandemic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.4 NewGeopoliticalPlayersintheEU-LACInterregionalism
Process:Cooperation,TradeandInvestment. . . . . . . . . . . . . . . . 43
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4 TheHistoricalandLegalContextoftheEuropeanUnion-
MERCOSURRelations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.1 ABeforeandAfterinEuropeanUnion-MERCOSUR
Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.2 AHistoricalJourneyfrom1991to2021. . . . . . . . . . . . . . . . . . . 54
4.3 TheNewStageofEU-MEROCURRelationsfrom2022. . . . . . . 61
4.4 ChinaandMERCOSURFuture. . . . . . . . . . . . . . . . . . . . . . . . . 63
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
v
vi Contents
5 MacroeconomicAnalysisoftheCharacteristicsoftheCountries
ofMERCOSURandItsComparisonwiththeEuropeanUnion. . . 69
5.1 MacroeconomicAnalysisandEstimatedTrends. . . . . . . . . . . . . 69
5.1.1 Population. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5.1.2 EconomicGrowth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.1.3 InflationRates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5.1.4 BalanceofPayments. . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.1.5 LabourMarket. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 83
5.2 InstitutionalAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.3 BusinessAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
6 NewAssociationStrategyintheMERCOSUR-EuropeanUnion
Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
6.1 TariffandNon-tariffBarriersandtheLiberalisationofTrade. . . . 98
6.2 MarketAccessforIndustrialGoods. . . . . . . . . . . . . . . . . . . . . . 103
6.3 MarketAccessforAgriculturalGoods. . . . . . . . . . . . . . . . . . . . 104
6.3.1 AccesstoRawMaterials,ExportDutiesandImport
andExportRestrictions. . . . . . . . . . . . . . . . . . . . . . . . . 110
6.4 TechnicalandNon-technicalBarrierstoTrade. . . . . . . . . . . . . . 110
6.4.1 TradeAgreementChapter3:CustomsandTrade
Facilitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
6.4.2 TradeAgreementChapter5:SanitaryandPhytosanitary
Measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.4.3 TradeAgreementChapter6:DialogueForums. .. . . . . . . 113
6.4.4 TradeAgreementChapter7:TechnicalBarriers
toTrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
6.5 FreeMovementofPersonnelandCapital. . . . . . . . . . . . . . . . . . 116
6.6 CompetitionandSubsidies. . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
7 TheCurrentStateofEU-MERCOSURTradeRelations. . . . . . . . . 121
7.1 AnalysisofCommercialExchangebetweentheEuropeanUnion
andMERCOSUR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
7.1.1 MainProductsExportedtotheEuropeanUnionfrom
MERCOSURCountries. . . . . . . . . . . . . . . . . . . . . . . . . 128
7.2 TheChallengesoftheNewAssociation:TheEuropeanUnion
andMERCOSUR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
7.3 AnalysisofTradeRelationsbetweenMERCOSURandthe
EuropeanUnionthroughaGravityModel. . . . . . . . . . . . . . . . . 134
7.3.1 TheoryBackground. . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
7.4 StatisticsSources:Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.5 Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.6 EstimationMethods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
7.6.1 TheInstitutionalFactors. . . . . . . . . . . . . . . . . . . . . . . . . 140
7.6.2 Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
References. . ...................... .................... 144
Contents vii
8 KeyFactorsofForeignDirectInvestmentintheMERCOSUR
oftheEuropeanUnion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
8.1 TheRelationshipBetweenForeignDirectInvestment
andTrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
8.2 MacroeconomicDeterminantsandMicroeconomic
Determinants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
8.3 FDIbyCountryofOriginandSectorstoWhichItIsDirected. . . 160
8.3.1 Argentina. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
8.3.2 Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
8.3.3 Paraguay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
8.3.4 Uruguay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
8.4 InterestsandSectorsforFDI. . . . . . . . . . . . . . . . . . . . . . . . . . . 170
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
9 TheImpactoftheFourthIndustrialRevolutiononGlobalSupply
Chains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
9.1 ChangesinInternationalTradeandEU-MERCOSUR
Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
9.2 TechnologyIndustriesCompanies:TheNewGeopoliticsof
InterregionalActors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
9.3 TheBroaderContextandUnquantifiableFactors. . . . . . . . . . . . 184
9.4 EU-MERCOSURandTechplomacy. . . . . . .. . . . . . . . . . . . .. . 186
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
10 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
References. . ...................... .................... 197
About the Authors
Ing.LourdesGabrielaDazaAramayo,Ph.D. Sheis
oneofthethreefoundersofAnglo-AmericanUniversity
and,FounderandExecutiveDirectoroftheLAC-Center
(LatinAmericanandtheCaribbeanBusinessandStudy
Center)inPrague.
SheisaspecialistinrelationsbetweenLatinAmerica
and the European Union. She is a member of the
Bi-regional Academic Council of the Permanent
Academic Forum Latin America and the Caribbean-
EuropeanUnion.
Lourdes Daza Aramayo is from Bolivia, she gradu-
ated as an Engineer from University of Economics,
Prague, in Economics and Economic Policy with a
specialization in Socio-economic Data Analysis. She
alsohasaPh.D.inEconomicPolicy.
Her research interests include International Rela-
tions, Diplomacy, and Trade Relations, Relations
between the EU and Latin America and the Caribbean,
International Trade, International Political Economy,
Trade Gender, Applied Econometrics, Econometric ad
EconomicAnalysis.Sheiscurrentlyworkingonanew
bookAdvancesandchallengesofPoliciesthatpromotes
LabourParticipationofwomenintheEuropeanUnion,
Latin America and the Caribbean in the context of
economicrecoveryduringandpost-Covid-19pandemic
thanks to the initiative of the EU-LAC Foundation and
theEUROsociALProgramme.
ix
x AbouttheAuthors
Mario Torres Jarrín is a Director of the Institute of
European Studies and Human Rights at the Pontifical
University of Salamanca (Spain). Previously, he was a
DirectoroftheEuropeanInstituteofInternationalStud-
ies (Sweden); Researcher Associate and Adjunct Lec-
turer in Regionalism in Latin America in the Chair of
International Business and Society Relations with a
focusonLatinAmericaatFriedrichAlexanderUniver-
sity Erlangen-Nuremberg (Germany); Lecturer in
RegionalStudiesandResearchAssociateintheInstitute
of Latin American Studies, as well as an Adjunct Lec-
turer in the Department of Romance Studies and Clas-
sics, Faculty of Humanities at Stockholm University
(Sweden).
He has been a Visiting Professor at Copenhagen
Business School (Denmark), University of Bergen and
University of Oslo (Norway), University Institute of
Lisbon(Portugal),NationalUniversityofPoliticalStud-
iesandPublicAdministration(Romania),Universityof
Salamanca (Spain), University of Economics and
Anglo-AmericanUniversity(CzechRepublic)andDip-
lomaticAcademicsinEuropeandAmericas.
He holds a Ph.D. in History, a Master in European
Union Studies and a BA in Business Studies from the
UniversityofSalamanca (Spain).Hisresearchinterests
include international relations and diplomacy, EU For-
eign affairs and security, EU & Latin America and the
Caribbeanrelations,EuropeanandLatinAmericaninte-
gration history, theories of regional integration and
interregionalism, international political economy and
globalgovernance.
He was Executive Secretary of Consortium of Uni-
versitiesIBERO-EURO-AMERICAandaCouncilAca-
demic Member of EU-LAC Academic Forum; Task
Force Member “The future of work and education for
thedigitalage”andTaskForceMember"TheMultilat-
eralismandGlobalGovernanceFuture"intheG20/T20
Summits system. He is a Member of the Scientific
Committeeof5EuropeanResearchProjectsco-financed
bytheErasmus+programmeoftheEuropeanCommis-
sion:“RelationsbetweentheEuropeanUnionandLatin
America: Future scenarios in a changing world” led by
Universidad de Concepción (Chile); Research Group
Member at Jean Monnet Module on International