Mercosur Signs Trade Pact with Palestinian Authority

December 21, 2011

by AQ Online

Yesterday, at Mercosur’s presidential summit in Montevideo, Uruguay, foreign ministers of the bloc’s four founding members—Argentina, Brazil, Paraguay, and Uruguay—signed a free trade agreement (FTA) with the Palestinian Authority (PA). This trade deal is significant not only due to Mercosur’s strength as the world’s fourth-largest economic bloc, but also because this pact opens the Palestinian economy up to new South American markets. The PA had prior trade relations with Argentina, according to the Latin American Integration Association—importing over $1.7 billion of Argentine goods in 2010.

PA Foreign Minister Riyad al-Maliki was present in Montevideo on behalf of the Palestinian people and expressed his gratitude: “We are glad to know we have so many friends in the region.” All four founding Mercosur members endorsed a sovereign and independent Palestinian state over the course of the past 12 months, starting with Brazil in December 2010.

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Mercosur also has an FTA fully in force with Israel; it was signed in December 2007 but needed ratification by the parliaments of each member state. Argentina’s congress became the last such nation to do so in March 2011.

Israel places strict controls on the flow of goods to and from the Palestinian territories of Gaza and the West Bank—and leaders like al-Maliki charge that Israel is stifling economic growth among the Palestinians. An Israeli representative from its Montevideo embassy said that while Israel would respect the Mercosur-PA FTA, it is “not the best way to promote peace” in the Middle East.



Tags: Mercosur, Free Trade, Uruguay, Palestine

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