Non-tariff Protectionism in Mercosur: Analysis and Recommendations on the Last Three Decades

Abstract

Abstract This paper aims to discuss and demonstrate the non-tariff challenges to Mercosur’s trade integration. Its Common External Tariff (CET) and exceptions will be discussed, as well as the evolution of its non-tariff protectionism framework in the last three decades. This is an unprecedented exploratory exercise on all 5019 non-tariff measures (NTM) notified by Mercosur members to the WTO from 1995 to 2020. As main results, we see that (i) members with fewer exceptions to the CET are the ones that most use NTMs to protect their markets; (ii) the stock of NTMs targeted at members and non-members varies accordingly; (iii) of the 10 countries most targeted by NTMs imposed by Mercosur members, its own members figure in the 3rd, 4th, 7th, and 8th positions; (iv) the bloc lacks deep regulatory harmonization, especially with regard to sanitary and phytosanitary barriers in 11 sectors. Based on these results, two critical policy action plans are suggested to the bloc.

Keywords

• Mercosur
• WTO
• non-tariff measures
• protectionism
• common external tariff