(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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3.2 European foreign investment in <strong>MERCOSUR</strong><br />
The European economic interest in <strong>the</strong> <strong>Common</strong> <strong>Market</strong> <strong>of</strong> <strong>the</strong> <strong>South</strong> (MER-<br />
COSUR) lies in <strong>the</strong> realized <strong>and</strong> expected pr<strong>of</strong>its obtained by <strong>the</strong> resident European<br />
corporations within <strong>the</strong> domestic markets <strong>and</strong> in <strong>the</strong> area <strong>of</strong> foreign trade. In terms<br />
<strong>of</strong> foreign trade <strong>the</strong> <strong>EU</strong> between 1990 <strong>and</strong> 1994 was able to “more than double”<br />
<strong>the</strong>ir exports to <strong>MERCOSUR</strong> countries, whereas imports rose only slightly: “a consequence<br />
<strong>of</strong> <strong>the</strong> unilateral liberalization on <strong>the</strong> part <strong>of</strong> <strong>the</strong> <strong>MERCOSUR</strong> countries.<br />
Especially Brazil, which lowered <strong>the</strong>ir tariffs from an average <strong>of</strong> 52 to 14 percent,<br />
became a desired market.” 176<br />
Between 1995 <strong>and</strong> 2002 <strong>the</strong> <strong>EU</strong> realized a current account surplus <strong>of</strong> 4.2 billion<br />
US-dollars with Brazil. According to <strong>the</strong> German employers’ umbrella organization<br />
BDI:<br />
“[...]since 1995, in its trade with Brazil, Germany has been benefiting from<br />
surpluses averaging approximately 1.5 billion dollars a year.” 177<br />
The European Union as an economic block is <strong>the</strong> main foreign-trade partner <strong>of</strong><br />
<strong>MERCOSUR</strong>. The trade balance creates <strong>the</strong> following picture:<br />
<strong>EU</strong>-MERCHANDISE TRADE WITH <strong>MERCOSUR</strong><br />
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Source: DG Trade: http://trade-info.cec.eu.int/doclib/html/111832.htm<br />
176 Ling, Martin, ibid., p. 4.<br />
177 http://www.bdi-online.de/RedDot/Protokoll_final_version_2003.pdf.<br />
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