LAS LENAS : And a Latin Union
The presidents of Argentina, Brazil, Paraguay and Uruguay meet Friday and Saturday at this ski resort in the Argentine Andes to update their plans for a regional common market. The Southern Cone Common Market (MERCOSUR), with a combined population of nearly 200 million, is scheduled to be in full operation by January, 1995.
The efforts of Presidents Carlos Menem of Argentina, Fernando Collor of Brazil, Andres Rodriguez of Paraguay and Luis Alberto Lacalle of Uruguay to promote trade among their countries already produced a 25% increase in regional trade last year, to $4.9 billion.
But the leaders still face major obstacles to free trade--including rampant inflation in Brazil, the largest of the four countries. Without monetary stability, problems in economic planning, price coordination and currency exchange could jeopardize the common market’s success.
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