| This month Mercosur celebrates its twentieth anniversary. This is an 
        opportunity to reflect on its future development in the light of the accumulated 
        experience. On this regard, there are three main considerations to give 
        thought to.
 The first is related with the significant changes in circumstances and 
        needs that have taken place since the Treaty of Asuncion was signed on 
        March 26, 1991. At the beginning of the nineties the situation was a result, 
        among other factors, of the multiple impacts derived from the end of the 
        Cold War, of the US initiative to promote a hemispheric free trade area 
        and of the relative stagnation of the bilateral integration methodology 
        between Argentina and Brazil. The most important needs at the time were 
        to compete against the Eastern European countries to attract productive 
        investments, to gather the sufficient negotiating critical mass to face 
        the American decision of having a strong trade presence in South America, 
        and to strengthen the strategic alliance crafted by Alfonsin and Sarney. 
        Additionally, these circumstances and needs should be viewed in the perspective 
        of the complex internal political and economic situation that characterized 
        the realities of Argentina and Brazil at the time. 
 Nowadays, circumstances and needs are quite different. The world has 
        become increasingly multipolar and all countries - including those of 
        Mercosur, whatever their economic dimension- have multiple options for 
        their insertion in global economic competition. The focus of attention 
        is no longer placed only in Washington or certain European capitals. The 
        shifts in relative economic power between nations and the growing protagonism 
        of Asian countries in word trade and in international investments open 
        up a scenario of great opportunities but also of great challenges for 
        Mercosur countries. These possess -among many other qualities that make 
        them attractive- an enormous potential for the production of food, even 
        for those dubbed "smart" or "green" foods. The current 
        needs involve profiting from such opportunities by crafting a grid of 
        cross alliances and variable geometry with all the possible countries 
        and by developing production and distribution networks of regional and 
        global scope. 
 The second consideration relates to the validity of the strategic idea 
        that drives the construction of Mercosur. This is grounded in a hard core 
        quality bilateral relation between Argentina and Brazil. It is based in 
        mutual trust, with a particular emphasis on nuclear cooperation. Its scope 
        is neither exclusive nor excluding, though it does have a South American 
        projection. It implies predictable economic preferences that motivate 
        a productive integration for the mutual gain and a weave of different 
        kinds of transborder social networks that, due to their density, generate 
        in actual fact solidarities that are difficult to untie. It constitutes 
        a strategic idea that, in its essence, continues to be valid for governments 
        and citizens. Or that at the very least reflects a consciousness on the 
        lack of other feasible alternative strategies between nations that share 
        a same regional geographic space, particularly taking into account the 
        possible political costs. 
 Finally, the third consideration refers to the methodology for joint 
        work between the member countries. Much has been learnt in terms of cooperation 
        at the different levels during the last years. The results have been plenty. 
        It would now be convenient to capitalize on the experiences and accumulated 
        assets. The stock of trade preferences and the network of cross interests 
        are not facts to be overlooked. The automotive sector offers but one example 
        of this. 
 Moving forward, there are three relevant methodological aspects to be 
        considered. The first would be to get rid of rigid formulas inspired in 
        theories or in models from other regions. In the gradual construction 
        of the customs union, the main factors to take into account are WTO regulations 
        and the respective national interests. The second aspect would be to favor 
        the idea of having few rules that are effectively observed and that are 
        flexible enough to be adapted to the changing realities. The third aspect 
        would be to strengthen decision-making mechanisms that enable to reach 
        real commitments for productive integration, to effectively and pragmatically 
        tackle negotiations with third countries and to face the multiple social 
        effects of the commitments resulting from integration.  |