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primarily producing for the Brazilian domestic market. 230<br />
Transnational corporations in MERCOSUR, which are oriented towards domestic<br />
markets, are not pursuing any standardized interests with respect to the settlement<br />
of a free trade agreement between the EU and MERCOSUR. On the one hand,<br />
the opening of markets through tariff reductions within the framework of an FTA<br />
would mean for these companies additional competition from corporations, which<br />
are currently not residing in MERCOSUR. 231 On the other hand, exports to countries<br />
outside of MERCOSUR could increase through FTA and national regulations like,<br />
e.g., the minimum quota on the number of local employees, could be lifted through<br />
an international treaty.<br />
This situation might shed the first clear light on the, to some extent, differentiated<br />
positions of interest of the different players with respect to the ongoing free trade<br />
negotiations between MERCOSUR and the European Union: First of all, for foreign<br />
companies already present in MERCOSUR it is an advantage to have a better position<br />
on the markets than the non-resident companies would have, and second of<br />
all, it is an even bigger economic advantage if, by means of an association treaty<br />
between the EU and MERCOSUR, the regulations on capital transfers and minimum<br />
quotas for local suppliers or local employees should be offset.<br />
MERCOSUR, with its four governments, does not follow any kind of uniform<br />
position in international negotiations on FTAs within the framework of ALCA/FTAA/<br />
ZLEA and MERCOSUR-EU negotiations. The interests and positions are still too<br />
different in some areas. For example, the four MERCOSUR member states agree<br />
on the issues related to obtaining access to agricultural markets in the industrialized<br />
countries, as well as to the reduction or abolishment of the European agricultural<br />
subsidies. But with respect to other issues this unanimity does not exist in this form:<br />
While the Brazilian government largely agrees with the Argentinian government on<br />
the issues of market access, investment and public procurement, 232 the Uruguayan<br />
government is pursueing different positions. The Uruguayan foreign minister, Didier<br />
Opperti, does not want to<br />
“lose any possibilities in the area of trade. We are not willing to accept a formulation<br />
[in the ALCA negotiations], which, from our perspective, would impose<br />
self-restraints with respect to market access. Trade and investment are central<br />
230 Estado de São Paulo, December 3, 2003, p. B7.<br />
231 Nunnenkamp, Peter: Foreign Direct Investment in MERCOSUR: The Strategies of European Investors, in:<br />
Paolo Giordano - Chaire MERCOSUR de Sciences Po [edit.]: An Integrated Approach to the European Union<br />
- MERCOSUR Association, 2002.<br />
232 Quote of the Argentine foreign minister Rafael Bielsa taken from the: Estado de São Paulo, November 18, 2003,<br />
p. B3: “Estamos ombro a ombro com os brasileiros, afirma Bielsa”, Own translation: “We are side by side with the<br />
Brazilians, said Bielsa.”<br />
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