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CFK alientating Mercosur partners


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#1
kurtdillard

kurtdillard
This is insane...

Paraguay exports to Argentina plunge 70%: http://en.mercopress...ures-considered
Argentina trade restrictions cut Uruguayan exports by almost half in February: http://en.mercopress...alf-in-february

The impact of Argentinas new restrictions is huge on Paraguay and Uraguay, I wonder about Brazil. This could quickly turn into a trade war and end Mercosur. Can any economists help us understand the likely consequences over the next year or two?

#2
ElNicoOriginal

ElNicoOriginal
  • LocationCap Fed
I am not an economist but I did study it in college (before I became a computer geek) and this just does not look good.

On the onset, it seems like "aw, poor Uruguay and Paraguay" but being selfish and only caring about Argentina (for economy's sake) at this point, I am scared crapless.

Argentina, for example, exports more to Uruguay than they import. Does Cristina really think that she can step all over their feet and they won't take any action? The stupidity of this move baffles me. Even an idiot like Cristina, I thought, wasn't capable of this sort of moronic behavior.

She's not setting her industry sector up to be competitive, she is actually setting it up to be rejected by the rest of the world, but more importantly, the neighboring countries.

We have already seen Brazil being unhappy with Argentina. Brazil being Argentina's biggest trading partner (both in terms of imports and exports) SHOULD be kept happy. What does Cristina think? Venezuela is going to fill in the need for any exports that Argentina loses from these so called Mercosur partners? Does she even know anything about logistics, among other things?

Well, I am ranting on based on my thoughts. I haven't done any solid research into the numbers but what I see is scary.

We are in for a wild ride. The Mercosur might stay intact because of the pride issues some Latin countries can't seem to deal with but it might just be a skeleton and nothing else (not saying it was anything other than that anyway).

This is each man for himself, except in Argentina's case it is, each man KILLS himself.

#3
libra

libra
Truly mind boggling!

#4
notebook.fix

notebook.fix
  • LocationBuenos Aires Capital
If there are a trillion ways to do it right and only one way to do it wrong....you can bet that CFK will not rest until she finds that one way to F*%$ it all up.

#5
Crema Americana

Crema Americana
  • LocationLoma Hermosa
When you set up tariffs and block imports, it's only a matter of time before they start doing the same to you.  You don't need to be an economist to know that.  :p  Argentina may be able to push her weight around for now, but it's detrimental to the MercoSur union.

Despite what CFK thinks, Argentina needs to have cordial trade with the outside world... you can't have your cake and eat it, too.  :rolleyes:

#6
ElNicoOriginal

ElNicoOriginal
  • LocationCap Fed
My years might be off but it goes something like this:

China in the 70s, Israel in the 80s and India in the 90s opened up business with the rest of the world and have since flourished. Cristina sees those examples and decides, "Oh no, wait! They aren't successful, its an IMF ploy! I shall do the complete opposite!"

F***ing maniac!

#7
mariposa

mariposa
  • LocationNew York City
...and yesterday Argentina blocked pork from brazil.

#8
ElNicoOriginal

ElNicoOriginal
  • LocationCap Fed

mariposa said:

...and yesterday Argentina blocked pork from brazil.

You serious?

#9
ejcot en argentina

ejcot en argentina
I wonder when Brazil will start talking as it's only a matter of time...

Who are Argentina's biggest trading partners?  I'm already surprised China aren't saying more since they import a lot of soya from Argentina?

#10
toongeorges

toongeorges
  • LocationBelgium
Here the 50 most important import/export/trade partners of Argentina in 2010:

http://trade.ec.euro...adoc_113344.pdf

Do the import restrictions mean that Argentina does not need the annual 3,5 billion euro worth of machinery?  After all, the Argentine economy is already productive enough.

What do you complain about Uruguay and Paraguay, they are only the 6th and 13th export partner.  It is only Brazil, the EU, China, Chile and the US that matter, if they matter at all.

(Note: I have been sarcastic!)




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