Suchergebnisse

Mercosur: the dilemma between the customs union and a free trade area. In 2001, the government of Argentina - facing a major economic crisis - took a rather controversial decision and reduced the tariff rates of all capital goods to zero. This became a main source of conflict with Brazil, the only country of Mercosur that produces such goods. This paper discusses two possible scenarios for the resolution of this issue. In the first one, the countries would opt for the maintenance of the customs union. The authors present some suggestions for the rebuilding of the Common External Tariff (CET), by which the countries would take a middle course acceptable to all. The other possible outcome would be a step back in the direction of a free trade area, with no CET at all. (Rev Econ Polit/GIGA)

This article focuses on the contradictory position of the United States in its economic policies towards Latin America. By pressuring the region to maintain its debt service, the US government left Latin American countries with little choice but to produce large trade surpluses, as voluntary capital flows to the region dried up in the 1980s. Simultaneous US insistence, however, that Latin American countries curtail their export incentive programs and liberalize their imports, makes debt servicing even more difficult and imposes heavy burdens on Latin American societies