Government Analyzes Impact of Leaving Mercosur

Extinction of trade bloc could lead to loss of 2.4 million jobs

Julio Wiziack
Brasília

Brazil is assessing the impact of a possible exit from Brazil from Mercosur. At the center of the debate is Argentina's resistance to a policy of limiting the TEC (Common Export Tariff), which focuses on products exported by the bloc.

There is still no precise calculation of the consequences of an exit, but billionaire losses are estimated without differential tariffs.

(Santa Fé - Argentina, 17/07/2019) Jair Bolsonaro says goodbye to the Argentine people. Foto: Alan Santos/PR

The CNI (National Confederation of Industry) expects a loss of 2.4 million jobs and R $ 52 billion in wage bill with the end of the trade group or flexibilization of TEC.

The 80% tariff reduction on more than 10 million goods, defended by the Brazilian government, implies wide trade opening, affecting mainly the automobile industry.

To be realized, it would be necessary to evaluate the four-member countries (Argentina, Brazil, Paraguay, and Uruguay).

If confirmed as electoral victories of Alberto Fernández in Argentina and socialist Daniel Martínez in Uruguay, Brazil may be isolated in isolation. "

Translated by Kiratiana Freelon

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