Mercosur cannot substitute FTAA and the European Union, says former head of Central Bank

01/07/2003 - 21h48

Rio, 7/2/2003 (Agência Brasil - ABr) - Mercosur is just a pale example of what Brazil can obtain through access to markets in the United States and the European Union, says former Central Bank president, Carlos Langoni. He went on to say that although Mercosur is important to Brazil and South America, it is no substitute for the alternatives available through Free Trade Area of the Americas and European Union negotiations.

According to Langoni, who is now at the Getulio Vargas Foundation, "We have to double exports in order to bring interest rates down. The only way to double our exports is through access to markets in the US and Europe."

In a recent speech to business executives, Langoni declared that Mercosur is an important factor in the Brazilian trade equation, but progress has to made in FTAA and EU negotiations, along with multilateral talks at the World Trade Organization. "Mercosur is an important bargaining tool. Its existence makes things easier for Brazil. But Mercosur cannot be seen as a substitute for trade agreements at FTAA or the EU." concluded Langoni. (AB)