The search for Mercosur's flexibility: drivers and limits of the Uruguayan demand

Abstract:

The purpose of this article is to analyze Uruguay's persistent demand to make Mercosur's rule of negotiating preferential trade agreements (PTAs) with third countries jointly more flexible, with a view to identifying: (1) the factors that have driven this proposal; and (2) the limits it has encountered. The main argument proposed is that beyond political conjunctures, both the impulses and the limits respond to combinations of economic and political factors that are rather structural. Therefore, in the absence of changes in the positions of its partners in the bloc, which Uruguay certainly does not control, there is a tendency towards the statu quo. In order to support the argument, at the empirical level, we first analyze the historical evolution of Mercosur and its external relations. Secondly, we delve into the current situation, marked by the Uruguayan government's efforts to sign a bilateral PTA with its main trading partner, China.

Keywords:
Mercosur; Uruguay; Flexibility; Preferential trade agreements; China