With the Trans-Pacific Partnership (TPP) finalized a week ago, and simply waiting approval from Congress and other member state legislatures, countries within Central and South America are now finding themselves on the outside looking in when it comes to localized trade and exports. And while the country of Brazil is already a member of the BRICS coalition, the hemorrhaging economy is now seeking a way to join in Russian led European Economic Union (EEU) to counter the fact that neighboring Peru and Chile are now part of the U.S. led trade consortium.
Global trade coalitions appear to be the wave of the future, with differing levels of free trade being the differentiating factor between those coming from Asia and Eurasia, and those coming from the United States, the Pacific Rim, and potentially Europe.
Brazil is ready to negotiate a free trade agreement with the Eurasian Economic Union (EEU). The deal is on the agenda of Mercosur, says the Brazilian Deputy Agriculture Minister Tatiana Palermo.Mercosur is the South American trade bloc that unites Argentina, Bolivia, Brazil, Paraguay, Uruguay and Venezuela.“We are the main advocate in the Mercosur bloc with regard of establishing a free trade agreement. We are studying, we are looking at the numbers,” she told Sputnik news agency.“It is on the list of agreements that we are discussing within Mercosur. So it is already there and when we are talking to our colleagues from the Agriculture Ministry of Russia, we also mention our goal is to start negotiations,” Palermo added.The EEU is a Russia-led trade bloc established in 2015 on the basis of the Customs Union of Russia, Kazakhstan and Belarus. It currently has five members: Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, while Tajikistan is a prospective member.The EEU ensures free movement of goods and services, capital and labor, as well as a coordinated, coherent and unified economic policy for its members. – Russia Today
The two biggest differences at the moment between the TPP trade coalition and the EEU/Asean ones is that in the West, what they are calling ‘free trade’ is really more about giving multi-national corporations sovereign power in addition to keeping TPP members in a dollar based trade system. In the East however, their concept of free trade is much more open and is seeking to facilitate direct bi-lateral trade in member nation’s own currencies while at the same time aiding in protecting trade nations from the destruction of dollar hegemony.
Just as military coalitions are forming between nation’s in the midst of NGO groups seeking to overthrow sovereign governments, so too are large groups of countries binding together to form trade pacts in opposition to the trend of emerging markets vying to break down the long standing dollar based global economy. And for Brazil, and a large number of Central and South American economies long placed under the thumb of the United States, their move towards the EEU will put this geo-political trade war on America’s doorstep, just as the TPP is attempting to do the same with China.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.