Michel Temer: We want to give a historic push to Mercosur - Bloomberg

Two of South America’s most pro-market presidents were on the wires, via Bloomberg, as both are struggling to shake off the protectionist policies of the past when it comes to international trade.

Key Highlights:

•Tuesday’s state visit by Argentine President Mauricio Macri to his Brazilian counterpart Michel Temer brought together the leaders of the largest two economies in Mercosur, the regional trade bloc.

•With record-high unemployment in Brazil and legislative elections due this year in Argentina, the question remains how willing the two leaders will be to pursue a free trade agenda.

•The two presidents signed deals extending cooperation on diplomacy, border issues and consular services. They also committed to periodic meetings between the two countries’ respective trade bodies and announced the creation of a new agency to harmonise sanitary and phytosanitary standards.

•Both Temer and Macri have implemented economically liberal policies as part of efforts to haul their countries out of recession. While Temer has set limits on Brazil’s public spending and started opening up infrastructure to foreign investment, Macri has removed currency controls and restored Argentina’s access to global bond markets.

•The crisis in Brazil has forced Argentina to diversify its exports to Asia and Europe, according to Marcelo Elizondo, director of international trade consultancy Desarrollo de Negocios Internacionales