From left: Paraguay's President Horacio Cartes, Brazil's President Dilma Rousseff and Argentina's President Cristina Kirchner raise a toast during The 48th Summit of Heads of State of the Southern Common Market, Itamaraty Palace in Brasilia, July 17, 2015 (photo: dpa)

Special report on trade talks between Mercosur and the European Union

The July summit of South America’s six-nation Mercosur group brought no progress in negotiations on a trade agreement with the European Union. While stagnant economies on both sides of the Atlantic could benefit from a pact, Brazil and Argentina, which have pursued highly protectionist regimes, must first reconcile their differences. A new government in Argentina may accelerate this process, while Brazil’s deepening political crisis could derail it.

The 48th Summit of the Market of the South (Mercosur) concluded in Brasilia on July 17. Among the noteworthy events was Bolivia’s admission as a full member of the trade group, which now consists of Argentina, Bolivia, Brazil, Paraguay, U...

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Dr. Joseph S. Tulchin
In Argentina, the state controls exchange rates and exports in order to guarantee sufficient revenue for the populist social policies that are central to the regime of President Cristina Kirchner, whose term ends in December
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