The digital market is key to the modernization process of the Southern Common Market (Mercosur) to increase the response capacity to new global integration processes, said Brazilian Economy Minister Paulo Guedes on Monday (08.11.2021).
The official spoke at the opening of the seminar “The role of Mercosur in promoting cross-border e-commerce and building the regional digital market”, a virtual event promoted by the pro tempore presidency of Brazil of the bloc, in collaboration with the Economic Commission for Latin America and the Caribbean (ECLAC).
According to the Brazilian minister, the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) had a vision of the future when they created the bloc in 1991 to improve the competitiveness of their markets, but ended up "losing a little" in the global race due to "obsolete arrangements."
For Guedes, there is now a new opportunity to relaunch the bloc's platforms, including the digital market.
"We are already emerging from the pandemic and the growth of this digital dimension continues at a rapid pace," he said.
Last week, the Brazilian government announced a unilateral 10 percent reduction in import tariffs on nearly 90 percent of products subject to the Mercosur common external tariff, in an attempt to contain inflation.
On Monday, Guedes said that it is important to address domestic needs to reduce the cost of food and basic necessities for the population.
«We count on the collaboration of our Mercosur partners to reduce the tariff, even if it is temporary and moderate. We are moving in the right direction of modernization.", he claimed.
Guedes also highlighted the rapid expansion of e-commerce in the Brazilian market.
"Brazil is the fourth digital market in the world and the second in the hemisphere. There are 35.000 billion reais (about USD 291 million) in sales from January to March, a relatively short time, and a 72 percent increase in sales compared to the same period in 2020," he explained.
According to the official, The digital integration of Mercosur countries plays a central role in the deepening and modernization of the bloc.
He recalled that in April an agreement was reached within Mercosur on electronic commerce regulations, which include rules for transfers, data localization and customs duties.
With information from Xinhua
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