Building expensive bridges: Paraguay in the Mercosul

Abstract

Paraguay is a country remarkably open to trade, yet economic actors have thus far been reluctant to deepen the regional integration process. The reasons for the emergence of these perceptions have not been analyzed in recent years, reducing the discussion mainly to the benefits and costs of regional integration as it was implemented, as well as the regional and institutional weaknesses in managing that process. Using a review of existing literature, this essay will attempt, firstly, to describe the conditions under which Paraguay entered Mercosur, and the challenges the country faced under the block existence. Secondly, it will observe both the institutional changes made by Paraguay in order to take advantage of Mercosur, and those still unresolved deficiencies that impede that action. Thirdly, it will analyze the benefits and costs incurred throughout the changes in the integration process; and its theoretical approaches of evaluation. Finally, it will make some final considerations regarding the possibilities and paths of Paraguay in the integration process.