The highlight of G20 was to make the distinction of national interest versus international commitments. While the UK has to manage Brexit, the U.S. seeks to reduce its isolation, Russia wants more acceptance and three Latin American presidents enhance their efforts for more integration.
Mexico and Brazil are negotiating their commerce agreement to triple the items of cooperation. Argentina and Brazil are working to push the Mercosur-EU negotiations. All of them are ratifying their commitments to the Paris Agreement on sustainability.
Mexico, Colombia, Peru and Chile in the Pacific Alliance have begun negotiations with Mercosur. Mercosur and the Pacific Alliance have more or less the same GDP of $4 trillion. The difference is that Mercosur has long productive channels while the Pacific Alliance has short productive channels. Both are linked to the U.S., China and the EU. Cooperation between both will bring more inclusion into their channels. Consequently, Mercosur will be more open to their automotive, agribusiness, industrial components and service channels imports, while the Pacific Alliance will be open for more cars, engineering, service systems, machines and tools. It will be interesting to see integration not only of infrastructure but of integrated solutions. The biggest and most urgent request will be digital integration through optical fiber.
To read the article, access: latintrade.com