2 92 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation InterregionalForeignPolicyDoctrine ( regiontoregionrelations ) intermsofwhichthe negotiationofagreementswithstrategicsubregionalblocs ( MERCOSUR , CAN , SICAandsoon ) isgivenpreference.Anumberofvoicesarestartingtodefendthe optionofbilateralnegotiationwithselectedstrategiccountries. ( 6 ) AmongtheEUinstitutionstherearemultipledissentingplayers.For instance , theEuropeanParliamentsupportedthecessationofnegotiationswith MERCOSUR , settingitapartfromtheDohaRound , whiletheDirectorate General ( DG ) onTradedefendedDohamultilateralnegotiationsasapriority. DGAgriculturesupportedthemaintenanceoftheCommonAgriculturalPolicy ( CAP ) without modifications , whilethe GD Relex ( External Relations ) proposedthestrengtheningofcooperationpillarsandpoliticaldialogue.There arealsoimportantdifferencesbetweenthememberstates ( Cienfuegos2008 ) . ThefourMERCOSURmemberstatesarenothomogeneouseither , making bloctoblocnegotiationsdifficult , sincelegitimateinterestsdonotnecessarily coincide.Thishappens , amongotherreasons , becauseinSouthSouthagreementsthe costsoftradediversiontendtofocusonthelessdevelopedcountries ( inrelationtothe mostdevelopedpartner ), whichsufferdeindustrialisationasaconsequenceof openingtheirmarketstomanufacturedproductsfrommoredevelopedcommercial partners.Thosepartnershavearelativelyhighercapitallabourendowment. Lessdevelopedcountriestendtoexperiencetradediversiontowardstheimports ofitslargerpartnerandbecomelesscompetitiveintheseproducts ( Venables 2003 , 2005 ) .Inthissense , thesecountriessufferatwofoldcost:thelossof theirlimited manufacturingsectorsandtradediversion.Inpart , thisis what MoncarzandVaillant ( 2006 ) showafteranalysinginterregionaltradepatterns. Accordingtothisanalysis , incentivestothesmallerpartnersmayoperateinaNorth Southagreement , whichwouldhelptoreducethetradediversioncostswithinthebloc , butitwouldreducepartoftheimplicitprotectionforsomeofthemoreindustrialised regionalproductswhichbenefitfromtheprotectionoftheagreement. 4.犜犺犲犈犿犲狉犵犲狀犮犲狅犳犆犺犻狀犪犪狊犪犌犾狅犫犪犾犘犾犪狔犲狉犪狀犱犐狋狊犜狉犪犱犲狑犻狋犺犕犈犚犆犗犛犝犚 Atthispointinthetwentyfirstcentury , therecanbenodoubtaboutthe globalriseoftheChineseeconomy , intermsofbothproductionandtrade , FDI , innovationandparticipationinglobalfinancialmarkets. MERCOSURisincreasinglybeingaffectedbyChinasincreasingeconomic influence.Whilein1990MERCOSURexportedtoChinaabout1.5percentof itstotalexports , by2007theChinesemarketcapturedaround11.2percentof totalexports.Likewise , MERCOSURimportsfrom Chinarosefrom 0.8per centin1990to15percentin2007.However , theeffectofChinabeingthe
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