In the past two years, Mercosur reached a consensus to move toward greater trade liberalization and started pursuing free trade agreements with a number of countries and economic blocs.
The window of opportunity for the Common Market of the South to conclude free trade negotiations is closing. For the past two years, Mercosur — as the South American customs union comprised of full members Argentina, Brazil, Uruguay and Paraguay is commonly known — has been pursuing an ambitious trade agenda that includes negotiations with the European Union, European Free Trade Association, Pacific Alliance, Canada, South Korea and Japan. During this period, Mercosur has also held exploratory trade talks with China and the Association of Southeast Asian Nations (ASEAN). However, Brazil's October presidential election coupled with Argentinian President Mauricio Macri's declining political capital will prevent Mercosur from concluding some of these negotiations, especially those with South Korea, ASEAN, Japan and China, all of which are more vulnerable to tightening deadlines caused by political uncertainties.
