MERCOSUR Report N° 13
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REPORT 2007 (SECOND SEMESTER) - 2008 (FIRST SEMESTER) Integration and Trade Sector Institute for the Integration of Latin America and the Caribbean - IDB-INTAL Inter-American Development Bank MERCOSUR Report Nº 13, May 2009 MERCOSUR Report N° 13 REPORT 2007 (SECOND SEMESTER) - 2008 (FIRST SEMESTER) Inter-American Development Bank Integration and Trade Sector Institute for the Integration of Latin America and the Caribbean - IDB-INTAL Esmeralda 130, 11th and 16th Floors C1035ABD Buenos Aires, Argentina Ph. (54 11) 4323-2350 fax (54 11) 4323-2365 E-mail: [email protected] http://www.iadb.org/intal The authors are responsible for ideas and opinions hereby expressed which may not necessarily reflect policies and/or positions from IDB or INTAL. Published in Argentina Institute for the Integration of Latin America and the Caribbean - IDB-INTAL MERCOSUR Report Nº 13 1a ed. - Buenos Aires: IDB-INTAL. May, 2009. 184 p.; 28 x 21 cm. ISBN: 978-950-738-282-6 1. Desarrollo Económico CDD 338.9 Editing Coordination: Susana Filippa Editing: Julieta S. Tarquini PRESENTATION The achievements and challenges in this ambitious initiative by the Southern Common Market (MERCOSUR), constituted by the Treaty of Asunción in 1991, have been evaluated in annual reports. The report presented here is part of a wider framework of activities that IDB/INTAL, as a unit of the Vice-Presidency of Countries and coordinating its actions with the Integration and Trade Sector of IDB’s Vice-Presidency for Sectors and Knowledge (VPS), has been carrying out in connection with the integration processes of Latin America and the Caribbean. Through this annual report, IDB/INTAL aims to facilitate access to information for a readership potentially interested in MERCOSUR, spanning the public, private, and academic sectors, and the subregional community as a whole. Also, to extend the interest aroused by MERCOSUR in the local to the international community we publish the Report in English, as well as the bloc’s official languages of Spanish and Portuguese. Report 13 covers the second half of 2007 and the first half of 2008. The initial draft of the document was prepared by a team of economists, headed by Ricardo Markwald with the collaboration of Lucía Maduro, Fernando Ribeiro, and Sandra Ríos. The macroeconomic chapter was prepared in INTAL with the collaboration of Rosario Campos, Romina Gayá, and Alejandro Ramos. The Integration and Trade Sector, managed by Antoni Estevadeordal, also collaborated in the design and content of the report. The final draft was coordinated and edited by Ricardo Carciofi and Uziel Nogueira, Director and Senior Integration Economist of INTAL respectively, with the assistance of Rosario Campos, Romina Gayá and Alejandro Ramos. Ever mindful of living up to the expectations prompted by previous reports, we invite readers to send their comments and/or suggestions on how we can improve the scope and focus of future publications. GLOSSARY OF ABBREVIATIONS AND ACRONYMS ABDI Brazilian Agency for Industrial Development (Agência Brasileira de Desenvolvimento Industrial) ABICALÇADOS Brazilian Footwear Industries Association (Associação Brasileira da Indústria de Calçados) ABIMAQ Brazilian Machinery Builders' Association (Associação Brasileira da Indústria de Máquinas e Equipamentos) ABIT Brazilian Textile and Apparel Industry Association (Associação Brasileira da Indústria Têxtil e de Confecção) ADB Asian Development Bank ADEFA Association of Automobile Manufacturers of Argentina (Asociación de Fábricas de Automóviles de la Argentina) ADIMRA Association of Metallurgical Industrialists of the Argentine Republic (Asociación de Industriales Metalúrgicos de la República Argentina) AFJP Retirement and Pension Fund Administrator (Administradora de Fondos de Jubilaciones y Pensiones) AM Agricultural Manufacturing AMPIP MERCOSUR Agency for the Promotion of Production Integration (Agencia MERCOSUR para la Promoción de la Integración Productiva) ANCAP National Administration of Fuels, Alcohol, and Portland (Administración Nacional de Combustibles, Alcohol y Portland) ANFAVEA National Association of Automotive Vehicle Manufacturers (Associação Nacional dos Fabricantes de Veículos Automotores) APEX Brazilian Trade and Investment Promotion Agency (Agência Brasileira de Promoção de Exportações) BADLAR Buenos Aires Deposits of Large Amount Rate BCB Central Bank of Brazil (Banco Central do Brasil) BCP Central Bank of Paraguay (Banco Central de Paraguay) BCRA Central Bank of the Argentine Republic (Banco Central de la República Argentina) BCU Central Bank of Uruguay (Banco Central de Uruguay) BCV Central Bank of Venezuela (Banco Central de Venezuela) BEA Bureau of Economic Analysis b.p. Basic points BRAECLPA Brazilian Pulp and Paper Association (Associação Brasileira de Celulose e Papel) BsF Strong Bolivars c.a. Cumulative annual CADIVI Commission of Foreign Exchange Administration (Comisión de Administración de Divisas) CAF Andean Development Corporation (Corporación Andina de Fomento) CAIRAA Argentina Chamber of Refrigeration and Air Conditioning Industries (Cámara Argentina de Industrias de Refrigeración y Aire Acondicionado) CAM MERCOSUR Customs Code (Código Aduanero del MERCOSUR) CAMEX Chamber of Foreign Trade (Câmara de Comércio Exterior) CAN Andean Community of Nations (Comunidad Andina de Naciones) CCM MERCOSUR Trade Commission (Comisión de Comercio del MERCOSUR) CCPAC Certificate of Common ariffT Policy Compliance (Certificado de Cumplimiento de la Política Arancelaria Común) CCROM Certificate of MERCOSUR Origin Regime Compliance (Certificado de Cumplimiento del Régimen de Origen MERCOSUR) CEB Buenos Aires Studies Center (Centro de Estudios Bonaerenses) CEB Brazilian Business Coalition (Coalizão Empresarial Brasileira) CEP Center for Production Studies (Centro de Estudios para la Producción) CET Common External Tariff CG Capital Goods CIC Chamber of the Footwear Industry (Cámara de la Industria del Calzado) CINDES Center for Integration and Development Studies (Centro de Estudos de Integração e Desenvolvimento) CMC Common Market Council (Consejo del Mercado Común) CNCE National Foreign Trade Commission (Comisión Nacional de Comercio Exterior) CNI Brazilian National Confederation of Industry (Confederação Nacional da Indústria) COF MERCOSUR Structural Convergence Fund Agreement (Convenio del Fondo para la Convergencia Estructural del MERCOSUR) CPC Joint Parliamentary Commission (Comisión Parlamentaria Conjunta) CPI Consumer Price Index CPI-GBA Consumer Price Index for the Autonomous City of Buenos Aires and Greater Buenos Aires (Índice de Precios al Consumidor de la Ciudad Autónoma de Buenos Aires y el Gran Buenos Aires) CRB Commodity Research Bureau CRPM Commission of Permanent Representatives of MERCOSUR (Comisión de Representantes Permanentes del MERCOSUR) DDC Developed Countries Dec. Decision DGC Developing Countries DGEEC General Directorate of Statistics, Surveys, and Censuses (Dirección General de Estadísticas, Encuestas y Censos) DINAPYME National Office for Crafts and Small and Medium Enterprises (Dirección Nacional de Artesanías, Pequeñas y Medianas Empresas) DNCN National Office of National Accounts (Dirección Nacional de Cuentas Nacionales) DNI National Directorate of Industries (Dirección Nacional de Industrias) € Euro ECA Economic Complementation Agreement ECLAC Economic Commission for Latin America and the Caribbean ELETROS National Association of Electric and Electronic Products Manufacturers (Associação Nacional de Produtos Eletroeletrônicos) EPCI Extended Consumer Price Index ESRI Economic and Social Research Institute EU European Union EUROSTAT Statistical Office of the European Communities EVE Economic Variables Expectations Ext. Extraordinary FAO Food and Agriculture Organization FCES Economic and Social Consultative Forum (Foro Consultivo Económico-Social) FDI Foreign Direct Investment FED The Federal Reserve System FFR Federal Funds Rate FLIR Short-Term Liquidity Facility with Monetary Regulation Instruments Reporting (Facilidad de Liquidez de Corto Plazo con Reporto de Instrumentos de Regulación Monetaria) FOCEM MERCOSUR Structural Convergence Fund (Fondo para la Convergencia Estructural del MERCOSUR) FOGADE Deposits Guarantee and Bank Protection Fund (Fondo de Garantía de Depósitos y Protección Bancaria) FONDEN National Development Fund (Fondo de Desarrollo Nacional) FONPLATA Financial Fund for the Development of the River Plate Basin (Fondo Financiero para el Desarrollo de la Cuenca del Plata) FTAA Free Trade Area of the Americas FTS Free Trade Space FTT Financial Transaction Tax FUNCEX Foreign Trade Study Center Foundation (Fundação Centro de Estudos do Comércio Exterior) GAHB Ad Hoc Biofuels Group (Grupo Ad Hoc sobre Biocombustibles) GAHIP Ad Hoc Production Integration Group (Grupo Ad Hoc de Integración Productiva) GANAEC High Level Group to Examine the Consistency and Dispersion of the Current Structure of the Common External Tariff (Grupo de Alto Nivel para Examinar la Consistencia y Dispersión del Arancel Externo Común) GANASIM High Level Group for the Elaboration of the Strategic Plan to Overcome Asymmetries in MERCOSUR (Grupo de Alto Nivel para la Superación de las Asimetrías) GANRI High Level Ad Hoc Group for Institutional Reform of MERCOSUR (Grupo Ad Hoc de Alto Nivel para la Reforma Institucional del MERCOSUR) GCC Gulf Cooperation Council GDP Gross Domestic Product GEIPA Executive Group for Automotive Chain Production Integration (Grupo Ejecutivo para Integración Productiva de la Cadena Automotriz) GIP Production Integration