After a decision by the Brazilian Senate on Tuesday, Bolivia is on track to become a full member of the South American Mercosur trade bloc. The final vote on Bolivia’s accession to Mercosur is expected to occur during a regional summit on Dec. 7 in Rio de Janeiro.
Luis Inacio Lula da Silva, the President of Brazil and current temporary president of the trade alliance, expressed his appreciation for the expansion on Wednesday through a post on social media, welcoming Bolivia’s inclusion in Mercosur.
The process of Bolivia’s full membership in Mercosur has been ongoing for eight years, with concerns over the country’s democratic institutions causing delays. However, the approval from the Brazilian Senate marks a significant milestone in this process.
Brazilian senators emphasized that Bolivia’s entry into Mercosur would enhance regional integration and open up new markets for Brazilian companies due to Bolivia’s substantial reserves of natural gas, lithium, and other crucial minerals.
In addition to Bolivia’s impending membership, Lula is also working towards finalizing a free trade agreement with the European Union by the end of the year. However, environmental commitments made by the EU have led to extended negotiations.
The election of Javier Milei, a vocal critic of Mercosur, as the president of Argentina has given rise to hopes of concluding the trade agreement with the EU. Milei will officially assume office on Dec. 10, potentially influencing future trade negotiations.
Some critics have raised concerns about Bolivia’s poor deforestation record potentially impacting future EU-Mercosur talks. According to Global Forest Watch, Bolivia ranked among the top countries for primary forest clearances last year, trailing only Brazil and the Democratic Republic of Congo.
The approval of Bolivia’s admission to Mercosur marks an important development in South American trade and regional integration. It reflects the evolving dynamics of international trade negotiations and the increasing significance of environmental considerations in these discussions.
Overall, Bolivia’s membership in Mercosur is expected to have wide-ranging implications for the region’s economic and political landscape, as well as its environmental commitments and challenges.
(Reporting by Lucinda Elliott; Editing by Mark Porter)
