Dismantling Stagnation Of South America

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Dismantling stagnation in Mercosur
Introduction
Before the 1990s, economic integration in Latin America was overshadowed isolation mechanisms placing barriers between neighboring countries in hopes of developing domestic growth. By the turn of the last decade in the 20th century, more countries became increasingly interested in the potential benefits of deeply integrating nations through cross-border trading. The countries of the Southern Cone of South America courageously took modern economic initiatives. Since then, the region has created mix results of whether their choices have liberated the region of trade barriers or created a fortress all on their own. In this paper I will be focusing on the customs union Mercosur by detailing its creation, discussing the critical events which have contributed to the group’s stagnation, and assessing the group’s current role in the global economy.
Background
In the 1980s, Argentina and Brazil placed their political differences aside and created a compact trade agreement to further economic cooperation and stability for years to come. In 1985, the Declaration of Iguaca opened up the dialogue between the two countries to pursue further integration with a committee meeting specializing in the economic and industry sectors. The Argentina-Brazil Integration and Economic Cooperation Program (PICE) was later established in 1988 to start a more modern approach to gradually cut out trade barriers and create a common market within the next ten

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