
Internal divisions are again on display in the Common Market of the South, commonly referred to as Mercosur. Uruguay's Foreign Minister Rodolfo Nin Novoa announced Aug. 14 that South American custom union will call a meeting to discuss Brazil's recent labor reform, which Uruguay opposes. While an exact date for the meeting is not yet set, Novoa is invoking the trade bloc's authority to argue that the Brazilian labor reform violates Mercosur's Social and Labor Declaration because it enables Brazil to be more competitive at the expense of labor rights. Brazil's revised labor rules include changes that effectively reduce the exposure of companies to labor lawsuits. On Aug. 15, the Brazilian government requested Uruguay submit an explanation for the proposed Mercosur meeting, arguing that its labor reform is aimed at modernizing labor laws and doesn't necessarily take away labor benefits.