Regional cooperation benefits all member countries - Ambassador Extraordinary and Plenipotentiary of Brazil to Kazakhstan Federico Duque Estrada Meyer

Representative of one of successfully developing countries which joined regional economic union long ago, Ambassador Extraordinary and Plenipotentiary of Brazil to our country Federico Duque Estrada Meyer told about the advantages of economic integration in an interview to Kazinform.

Mr. Ambassador, could you tell please about the integration communities which Brazil has already joined? What are the goals of your accession to them?

Like Kazakhstan Brazil is a member country of many structures - for instance, G-20 which in prospect can replace G-8, the Latin American Integration Association. However, the most important of them is MERCOSUR, the sub-regional trade-economic union.

The MERCOSUR unites Argentine, Brazil, Paraguay and Uruguay. Bolivia, Chile, Columbia, Ecuador and Peru currently have associate member status. Venezuela's accession to this Organization is under discussion at present. MERCOSUR was founded in 1991. (MERCOSUR - Mercado Comu'n del Cono Sur, or Southern Cone Market - a common name of the part of Southern America located to the south of 34º of southern latitude - Editor).

Brazil as well as Kazakhstan supports the ideas of regional cooperation not only in political but also in economic spheres.

How did MERCOSUR countries benefit from integration?

The results of regional cooperation are as following to date. The GDP of Brazil makes today USD 1.4 trln or 365% of growth since the country has joined the MERCOSUR. Other member countries' GDP grew significantly too, for instance Argentine's GDP rose by 149%, in Paraguay this figure makes 218% while in Uruguay it makes 282%.

Total GDP of four countries rose threefold since establishment of the MERCOSUR.

I would like to remind that over these 20 years the world has experienced many crises. Moreover, touching upon bilateral trade among the Organization's member countries we see that trade turnover between Brazil and Argentine has risen by 80% within this period. Trade between Brazil and Paraguay rose by 317% while trade between Brazil and Uruguay rose by 347%.

All of these demonstrate that establishment of such unions reproaches the countries and promotes trade; they do not compete with each other. Some sectors face losses, but some of them benefit from integration. In whole, the countries' economies become stronger, new jobs are created and people's living standards improve.

In your opinion, why is the Customs Union's establishment negatively perceived in Kazakhstan? Some experts say that Russia being a stronger partner in the CU will impose the solutions which are profitable only for it.

Brazil as well as Argentite faces the same criticism concerning the MERCOSUR. Paraguay and Uruguay are not criticized so much. However, we see positive trends in this direction. And our response to this criticism will be as following - we have no problems with the people whom we do not contact with. When you initiate a new idea, many people express doubts about it. It is normal. We are always afraid of unknown things. To my mind, namely regional associations usually demonstrate more success, for example, the European Union, the MERCOSUR and others. Brazil supports any regional cooperation, I think.

What is the system of regional cooperation?

The system of regional cooperation in MERCOSUR lies in the following - Brazil and Argentine do not try to sell only their products to Paraguay, since if Paraguay does not develop its own production it will face lack of funds for purchase of Brazilian and Argentinean goods. Therefore our governments try to let the businessmen of economically stronger countries invest in weaker ones. We want to provide more people in Paraguay with jobs, to let them earn more money and buy our goods. That is why both Brazil and Argentine adopt such decisions in order to raise Paraguay to their level.

By the way, over 50% trade turnover of Brazil fall on developing countries. China is our largest partner both in export and import. Last June at the meetings with Kazakh Leader Nursultan Nazarbayev and Prime Minister Karim Massimov in Astana President of Brazil Luiz Inacio Lula said we could suggest many good products for sale in your country. However we wish to buy something in Kazakhstan too. This is the major principle of MERCUSOR - we believe in balanced trade!

Thank you for the interview!