SYSTEMIC TRADE AND COMPETITIVE COOPERATION BETWEEN THE EU AND MERCOSUR

Abstract

In the current context of the world economy’s globalization, almost all interstate integration groupings face the uncertainty regarding cooperation with non-Member states and other integration groupings. While in recent years the economic integration of countries has developed intensively, today the formalization of cooperation between interstate integration groupings, namely the negotiation of a free trade zone between them is the phenomenon of great importance. The article examines the current state of systemic trade and competitive cooperation between integration groupings. The formalization of economic relations between interstate integration groupings as a phenomenon of modern global economy has been defined. The state of any integration grouping proved to be determined not only by the internal potential and interaction between the member states of the grouping, but also by the degree of economic and competitive cooperation, since it becomes apparent that the economies of the member states of the integration grouping cannot be restricted by the grouping, but must develop their economic and competitive relations. The free trade area between the European Union (EU) and the South American Common Market (MERCOSUR) has been analyzed. Today's realities show a tendency to rekindle negotiations on free trade zones between international integration groupings and the occurrence of the major global trend; the number and types of agreements on trade and economic cooperation are growing, new free trade zones between international integration groupings are being announced, and the range of concepts regarding competitive advantages is being extended. Currently, trade and competitive convergence of interstate integration groupings leads to new forms and mechanisms of activities organization and as a result, the prospects for the free trade zones consolidation are emerging. Interstate integration groupings are being involved in the global trade and competitive environment through the intensification of their foreign economic relations, taking into account the special positions of member states.