TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 85 Parliament , aSocialInstituteandaPermanentRevisionTribunal. 3.犕犈犚犆犗犛犝犚犪狀犱狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀 3.1 PotentialGainsandRisks AlthoughabilateralapproachbetweentheEuropeanUnionandtheLatin AmericancountriesstartedwiththeSanJosémeetingsin1984 , itisinthe1990s thatthe European Communityassumeda moreactiveroleinthesearchfor cooperationandassociationagreementswithvariousLatinAmericanintegration processes.Thisinterestcoincidedwiththestrengtheningintegrationprocesses alreadyexistingintheregionand withtheconstitutionofpromisingnew initiatives , suchasMERCOSUR.Italsotookplacewithintheframeworkofthe socalled “ GlobalEuropeanIntegrationModel ” thatpromotedcountryrelations beyondcommercialconsiderationsandinthedirectionofpoliticaldialogue , as wellascooperation. Itis withinthisframeworkthatthe EU and MERCOSUR signedan InterregionalFramework Cooperation Agreementin December1995 , in which theyexpressed theirintention to formalise cooperation agreements and to advanceinthenegotiationsinordertoestablishatradepartnershipagreement contemplatingreciprocaltradeliberalisationinaccordancewithGATT Article 24.Itisalsoimportanttonotethatin1995MERCOSURstarteditstransitional processtowardsaCustomsUnionaftertheOuroPretomeeting.Althoughthere wereexpressionsofinterestonthepartoftheEUaboutsigningagreementswith MERCOSURimmediatelyafterthesigningoftheTreatyofAsunción1991 , thesigning oftheInterregionalAgreementwasmadepossiblebytheinternationallegalpersonality conferredonMERCOSURbyArticle34oftheProtocolofOuroPerto. Thenegotiationsbetweenthe EU and MERCOSUR startedin 1999 , coincidingwithanotherhistoricaleventintheEU , theestablishmentofthe MonetaryUnion.Thesenegotiationswerecomplicatedbythefactthatthey involvedtwoCustoms Unions , withtheirowninternalconflictsofinterest concerningtheestablishmentofacommontradepolicy , andalsobecauseofthe NorthSouthaspect.Althoughtheagreementwasgivenconsiderableemphasis , itwasnotthefirstagreementbetweentwoCustom Unions:theEuropean CommunityandtheAndeanCommunityhadalreadyestablishedanarrangement ofsimilarnatureinApril1993. Fromaneconomicpointofview , inparticulartradeopportunities , the agreementwaspromotedbecausethetwomarketsareimportanttooneanother. TheEuropean Unionisa marketofover490 millionpeople , thethird most
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