EU-MERCOSUR interregionalism: Facing Up to the South American Crisis and the Free Trade Area of the Americas

As part of their plans to diversify and globalize their foreign relations, the EU and MERCOSUR have been working to establish closer links. They have a project to create an interregional Association based on political dialogue, cooperation and trade issues. To understand the evolution of this interregional relationship, it is also important to take into account the USAs’ project, which seeks to create a hemispheric market for 2005 and in which MERCOSUR is participating. There is competition between Europe and the USA in the Southern Cone. While the EU has often provided support for institution building in MERCOSUR, the latter has frequently been destabilized by US regionalist strategy. The USA has often taken advantage of its special relationship with Argentina. However, the open crises that Argentina has faced since December 2001, and the US attitude towards the crises, appear to have affected the Buenos Aires foreign policy alignment with Washington. What geopolitical consequences could this have for the area? And what is the US position on this development? Has the EU taken advantage of the situation to reinforce its interregional partnership with MERCOSUR and to counteract US influence in the region