Reuters’ meeting ended with no agreement on reductions in import rates, according to Reuters

Author: Lisadra Paraguassu

RIO DE JANEIRO (Reuters) – Mercosur’s South American trade bloc summit ended on Friday without a final presidential statement, as member nations failed to reach an agreement to cut import tariffs due to a sharp rise in inflation.

The members of Mercosur, made up of Argentina, Brazil, Paraguay and Uruguay, have been working for years to reduce the so-called common external tariff to help increase trade between themselves and the rest of the world. Demand for cuts has risen in recent months as inflation has risen.

In November, the Brazilian government announced a 10% reduction in import taxes on goods and services of 10%, which was expected to put pressure on the rest of Mercosur’s members, and to anticipate a common foreign tariff agreement.

But on Friday, member states were unable to reach an agreement after Uruguay refused to sign unless other countries agreed to allow Unilateral Mercosur to negotiate unilateral free trade agreements without the blessing of the nations.

Mercosur’s rules veto this type of negotiation, and Argentina and Paraguay are against it. Brazil is not so opposed, according to Pedro Miguel da Costa e Silva, Brazil’s chief negotiator Mercosur.