The European Union (EU) and Mercosur serve as representatives of regional economic integration organizations of the North and the South countries, respectively. The two regional organizations encompass dozens of countries and possess immense market potential. The scale of trade and investment between the EU and Mercosur has shown a steady growth trend, yielding fruitful outcomes in economic and trade cooperation. Based on the theory of neoliberal institutionalism, the economic and trade cooperation between the EU and Mercosur is the result of the convergence of three key factors: the internal variables, the international variables, and the variables of strategic interaction between regions. The internal variables stand as the fundamental element. The EU and Mercosur share similarities in their pursuit of “regional integration” and in the affirmation of their regional organization identities. “new regionalism” proposed by the EU aligns with the notion of “open regionalism” embraced by Mercosur, and both entities pursue a multilateral and pragmatic diplomatic approach. The international variables serve as the immediate impetus. The forces of globalization, economic integration, and global governance collaboration present opportunities for cooperation and development on both sides. Strategic interaction between regions lays the foundation. The legacy of colonial history endows both entities with akin bloodlines, a harmonious cultural context and an enduring economic and trade network. Moreover, the perpetually intensified strategic partnership supplies institutional underpinnings for collaborative economic and trade endeavors.

Keywords: European Union, Mercosur, Economic and Trade Cooperation, Internal and External Variables, Neoliberal Institutionalism

Download the full text PDF for viewing and using it according to the license of this paper.

Funding

This research was funded by the National Social Science Fund of China (No. 18ZDA170).

Conflicts of Interest:

The authors declare that they have no conflicts of interest to report regarding the present study.

References

Zhang, V. B. (2000). The EU and MERCOSUR: Prospects for a free trade agreement. Journal of International Studies and World Affairs, 42(1), 1-22.
Wang, Z. (2010). General theory of international political economy. Peking University Press.
Keohane, R. O. (1984). After hegemony: Cooperation and discord in the world political economy. Princeton University Press.
Uli de Voist, U., & Men, J. (2007). The process of European integration: EU decision-making and foreign relations (Men, J., Trans.). China Renmin University Press.
Bonde, J.-P. (Ed.). (2009). Consolidated reader-friendly edition of the Treaty on EU (TEU) and the Treaty on the Functioning of the EU (TFEU) amended by the Treaty of Lisbon (2007) (3rd ed.). Foundation for EU Democracy.
European Commission. (2020). Strategic plan 2020-2024: Directorate-General for Trade.
European External Action Service. (2016). Shared vision, common action: A stronger Europe—A global strategy for the EU’s foreign and security policy.
Mercosur (1991). Tratado de Asunción para la Constitución de un Mercado Común.
Mercosur (1994). Protocolo de Ouro Preto (Adicional Tratado de Asunción sobre la Estructura Institucional del MERCOSUR).
Ministério das Relações Exteriores. (2024). Mercosur.
Ministerio de Relaciones Exteriors Paraguay (2024). Mercosur neccesita revitalizar suesquema de integración afirma canciller.
Secretaria de Comunicaçaõ Social (2024). 2023 was marked as a year to rebuild Brazilian foreign policy.
Ministry of Foreign Affairs, International Trade and Worship. (2016). Argentina: The road behind and the road ahead.
Uruguay Presidencia and Agencia Uruguaya De Cooperation Internacional (2023). Uruguayan Agency for International Cooperation---Strategic Priorities For International Cooperation For Sustainable Development 2020-2025. Mastergraf.
Nye, J. (2002). Globalism versus globalization. The Globalist.
Bulter, S. (2017). L’Oréal to sell Body Shop to Brazil’s Natura in €1bn deal. The Guardian.
Sakate, M. (2023, April 20). Brazil’s Natura sells Aesop to L’Oréal in $2.52 billion deal. Bloomberg Línea.
European Commission. (2016). EU and Brazil to work together on 5G mobile technology.
INPI (2019). Memorando de Entendimiento Sobre Colaboración Reforzada Entre el Instituto Nacional de Propiedad Industrial Argentina y la Oficina Europa de Patentes.
Ueconparaguay (2023). El Equipo Europa Apoya a Paraguay in el Camino hacia una Economía más Verde.
European Commission (2023). EU-CELAC Summit: EU and Uruguay boost cooperation on renewable energy, energy efficiency and renewable hydrogen.
Matalucci, S. (2023). The hydrogen stream: EU, Argentina, Chile, Uruguay to partner on hydrogen. PV Magazine.
UEenParaguay (2022). Iniciativa Verde del Equipo Europa: Socios por un Mañana más Verde.
Ramos, C. S. (2022, February 10). EU seeks companies in Brazil to encourage transition technologies. Valor International.
Rodrigues, M. J. (2023). New manifesto giving international impetus to Lula da Silva’s environmental policy. FEPS.
Thomas, V. B. (1998). British trade with Latin America in the nineteenth and twentieth centuries. Occasional Paper (No. 19). Institute of Latin American Studies, University of London.
United Nations Department of Economic Affairs. (1953). A study of trade between Latin America and Europe.
European Commission (1994). The European Community and Mercosur: An Enhanced Policy.
Zhao H. and Zeng Z. (2020). EU-Mercosur Economic and Trade Cooperation: Foundation, Motivation and Progress. Journal of Latin American Studies. 42(3), 27-45.
Franca, M. (n.d.). The EU-Mercosur agreement: Between global administrative law and multilevel constitutionalism. Academia.
European Commission (2002). Mercosur- European Community Regional Strategy Paper 2002-2006.
European Commission (2007). Mercosur Regional Strategy Paper 2007-2013.
European Parliament (2017). The EU-Latin American Strategic Partnership: State of Play and Ways forward.

This is an open access article under the CC BY-NC license.

Journal Menu

Journal Browser

Table of Contents

Analysis of External and Internal Variables Affecting EU-Mercosur Economic and Trade Cooperation