MercoPress, 07/03/2012
The formal incorporation of Venezuela to Mercosur next July will benefit mainly Brazil and Argentina since they could considerably increase their exports to the oil-rich country at the expense of the local production sector weakened by the economic policies from the administration of President Hugo Chavez, according to analysts.
Main producers such as Brazil and Argentina will become the main beneficiaries of the incorporation because they will have greater access to the Venezuelan market, which is highly dependent on imports” said economist Pedro Palma from consultants Ecolatina.
Palma added that Venezuela “has virtually dismantled the private sector production capacity since many companies have been taken over by the state and once under state management they lose competitiveness and their level of productivity.”
[...] no longer block Venezuela’s entrance into the trade union, a development which could potentially profit Brazil greatly. Outside of South America, Brazil and Mexico are strengthening their relationship, as Mexico’s [...]