The 63rd summit of the Common Market of the South (MERCOSUR) was held in Rio de Janeiro, Brazil, a few days ago, which made the world once again feel the cohesion and competitiveness of developing countries. Mercosur is made up of Argentina, Brazil, Paraguay and Uruguay and was officially launched in 1995. This market of 300 million people is the eighth largest economy in the world. With the continuous advancement of multipolarization in the world, Latin American countries, including the member states of MERCOSUR, are increasingly reluctant to be swayed by the hegemony of the West, especially the United States, and their confidence and determination to demand a fairer and more independent development path are becoming an important variable in shaping the global pattern.
First, decisively reduce dependence on the dollar. For a long time, the development of Latin American countries has been constrained by the hegemony of the dollar. In recent years, the Federal Reserve's extreme monetary policy has led to high inflation and high debt in Latin American countries, and imported financial risks have increased significantly. As early as 2008, countries such as Brazil began to use their own currency for settlement of imports and exports**, and no longer used the US dollar as an intermediary currency. Earlier this year, the leaders of Brazil and Argentina indicated that they were studying the initiative to launch a common South American currency.
At the summit, the participants agreed to conduct studies to further promote local currency settlement between Mercosur countries. As Paraguay's Minister of Finance, Liamosas, said, the use of local currencies for settlement contributes to the economic stability of MERCOSUR member states and promotes the development of MERCOSUR countries, which has formed a consensus in Latin American countries. Despite the challenges of achieving the adoption of local currency settlements among MERCOSUR countries, and indeed the use of the South American common currency for settlements in the future, the current summit has amply demonstrated the determination of MERCOSUR to strengthen regional integration and reduce dependence on the United States dollar. For Latin American countries, in the 200 years since the "Monroe Doctrine" was put forward by the United States, the specter of colonialism has always threatened the development of Latin America, and getting rid of the shackles of US hegemony has become an endless development demand for the Latin American people.
Second, we must resolutely reject the "bullying" of foreign forces. In addition to the United States, the European Union has also increased its focus on emerging market countries in the South in recent years, with the aim of so-called "reducing dependence on the Chinese market". For these Latin American countries, deepening cooperation with the EU could also provide important opportunities for them to integrate into global value chains. Despite the needs of both sides, the emerging market countries of the South have also shown determination and courage in the face of the EU's irrational practices.
After 20 years of negotiations, MERCOSUR and the EU finally agreed in June 2019 on the broad terms of a potential agreement, and the dawn of a free trade area is imminent. However, in March this year, the EU side sent a document to Mercosur, requiring MERCOSUR to export products to the EU to meet the EU's environmental protection requirements, otherwise they will face sanctions. The EU's unilateral proposal of additional environmental conditions to the MERCOSUR-EU FTA is a typical protectionist approach. In fact, environmental issues are only a front for the protection of the interests of agricultural producers and energy and mineral companies within the European Union, and the field of agricultural products and energy mining is a part of the MERCOSUR countries where they are more advantageous and are related to environmental issues. Latin America resolutely says "no" to this. Obviously, this kind of obstacle creation by the EU is unacceptable. "Argentina has always been open to negotiations with the European Union and has always hoped that MERCOSUR and the EU will reach a balanced, symmetrical and beneficial agreement for all parties," Argentine Prime Minister Cafiero stressed. However, if the content of the FTA is only aimed at reducing tariffs, it will put the national industries and agricultural exports of the MERCOSUR member countries at risk. ”
Third, we need to fully demonstrate the potential of economic growth. On the one hand, emerging market countries in South America have important reserves of raw materials. In the context of the Ukraine crisis and the Palestinian-Israeli conflict, how to ensure the security of the ** chain has become the top priority of countries around the world. As a result, on the opening day of the meeting, Singapore signed a free ** agreement with Mercosur, under which the two sides will provide each other with broader market access through measures such as reducing tariffs. In addition, on the same day, the EU also announced that it would continue to advance negotiations on a free trade agreement with Mercosur, with a view to reaching a strategic agreement in the interests of both sides as soon as possible. This is because greater cooperation with resource-rich Latin America is key to Europe's energy transition.
On the other hand, South-South cooperation is unleashing strong cohesion and discourse. Not long ago, during his visit to China, Uruguay Lacalle specially emphasized the importance that Uruguay attaches to deepening economic and trade cooperation with China, during which the two sides signed more than 20 agreements in the field of investment promotion. The Uruguayan side strongly stated that it will speed up the construction of a free trade partnership between Uruguay and MERCOSUR and China, and that Uruguay will discuss a free trade agreement with China, regardless of whether other MERCOSUR partners join or not. China has been Uruguay's largest partner and largest export market for 11 consecutive years. Strengthening economic and trade cooperation with China and enhancing the voice of the countries of the South in global economic governance are common strategic choices for Latin American countries.
Over the centuries, the vast countries of the South have been deeply affected by the "center-periphery" structure and have repeatedly missed development opportunities. At present, the collective rise of the "Global South" has strongly expressed their determination to oppose hegemony and bullying, and the history of colonization has made them fully realize that only by promoting industrial upgrading and getting rid of the role of raw material exporters can they obtain equal development opportunities and integrate into the world system. (The author is a professor and doctoral supervisor at the School of International Relations, Beijing University of Foreign Chinese).