MERCOSUR Report No. 1 (1996)
Inter-American Development Bank (IDB)
MERCOSUR has become less operational, despite government claims that it will continue to play a leading role in the international insertion strategies of its member countries for some years. The current crisis is clearly far from over. It is important to note that the enormous difficulties that MERCOSUR faces stem not only from changes to the conditions of competition triggered by the devaluation of the Brazilian currency and the fragility of the Argentine economy. A number of more important issues and impasses undoubtedly have come into play to threaten the future of the integration process.