But under left-wing governments, Brazil and–especially–Argentina have become more protectionist. They have come to see Mercosur as a fortress, rather than a bridge: outside South America, the only trade deals concluded by the block in the past decade were with Israel and the Palestinian Authority. Negotiations with the EU, begun in 1999, have languished. Although intra-Mercosur trade has continued to rise in absolute terms, it represents a much smaller share of each member’s total exports than at its peak in 1997 (see chart). That is partly because the commodity boom has lifted the group’s exports to the rest of the world. But it also because Mercosur has not evolved into the seamless single market its founders dreamed of.
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