Mercosur Chile Agreement

SANTIAGO (Reuters) – Chile and Brazil signed a free trade agreement on Wednesday that removes bureaucracy and tariffs between the two South American economies. Chile and MERCOSUR have decided to deepen their trade relations by developing their services agreement under the Economic Supplement Agreement No. 35. To that end, they met on June 14, 2007. Chile and Uruguay met later on 10 September 2007 to deepen trade relations between the two countries. After eleven rounds of negotiations, Chile and MERCOSUR ended their service exchanges on 1 July 2008. The Caribbean country`s accession protocol was signed in 2006 by all the presidents of the bloc countries. The Uruguayan and Argentine congresses then approved the accession of the new member. The Brazilian Congress did not do so until December 2009.

However, the Paraguayan Congress did not approve it and therefore prevented the Caribbean nation from fully joining it. In response to the summary ouster of the President of Mercosur by Fernando Lugo on 29 June 2012, the Mercosur presidents have declared Paraguay`s suspension until the next presidential elections in April 2013. A month later, the bloc presidents confirmed their commitment to Venezuela. It was proposed that the decision on Paraguay`s return could be overturned by exercising its veto power, which was not the case. [22] The decision was challenged. For some economists, Venezuela`s acceptance as a full member of Mercosur broadens the bloc`s economic importance and opens up new business and investment opportunities. But for others, the decision was considered hasty, imposed by the Brazilian and Argentine governments and motivated solely by political interests. Mercosur`s work is not universally recognized in the countries concerned. Chile has, to some extent, preferred to pursue bilateral agreements with trading partners, and Uruguayan politicians have asked to follow suit.

[54] Mercosur entered into economic cooperation agreements with Bolivia, Chile, Israel and Peru in its first decade, while trade within the bloc increased from $4 billion in 1990 to more than $40 billion in 2000.