Argentina`s intention to establish closer relations with Brazil was accompanied by Brazil`s intention to do the same. While Brazil was still under military rule, it launched a policy of improving relations with its South American neighbours, and Argentina was seen as the key country of these efforts. The initiative was accelerated after 1985, when José Sarney became Brazil`s first civilian president since 1964. Shortly after taking office, President Sarney met with President Alfonsin, and then a number of diplomatic initiatives and visits by the President took place. The aim of this exchange was to deepen the process of cultural, political and economic rapprochement between Argentina and Brazil. Discover the current trade relationship between the EU and Thursday`s Mercosur agreement, which renews the so-called “Flex” agreement, which currently allows Brazil to sell vehicles and parts worth $1.5 to Argentina for every dollar it buys from the Argentine car industry. Find out how the EU-Mercosur trade agreement would help small businesses that are already exporting around the world. However, Brazil`s threat to leave Mercosur seems more rhetorical than real. Mr. Bolsonaro`s style is to provoke and coerce the so-called ideological opponents to fire and rally his supporters. But there are several ways to get out of Mercosur that could hurt the Brazilian economy.
The experience of Brexit in Europe shows that the withdrawal of the trading bloc can be longer and more complex than many politicians expect. Although Brazil is by far the bloc`s largest economy, the removal of Mercosur`s tariffs, as well as visa and freedom of residence regimes, could create a period of prolonged uncertainty for Brazilian exporters and importers and pose a significant threat to employment. With the creation in 1991 of the Brazilian-Argentina Agency for the Accounting and Control of Nuclear Materials, the two countries transformed their nuclear competition into cooperation through mutual trust. [5] The high volume of trade and migration flows between Argentina and Brazil has led to closer relations, particularly after the introduction of Mercosur in 1991. [6] Today, the strategic relationship between Argentina and Brazil is considered “at the highest point in history.” [7] Argentina`s foreign policy has emphasized “deepening the strategic alliance with Brazil in all its aspects.” [8] Similarly, Argentina is a “top priority” for Brazilian foreign policy. [9] Argentina is Brazil`s third largest trading partner after China and the United States.