This electronic version has been made available under a Creative Commons (BY-NC-ND) open access license. This book provides a distinctive and empirically rich account of the European Union’s relationship with the Common Market of the South (Mercosur). It seeks to examine the motivations that determine the EU’s policy towards Mercosur; the most important relationship the EU has with another regional economic integration organization. In order to investigate these motivations (or lack thereof), this study examines the contribution of the main policy- and decision-makers, the European Commission and the Council of Ministers, as well as the different contributions of the two institutions. It analyses the development of EU policy towards Mercosur in relation to three key stages. Arana argues that the dominant explanations in the literature fail to adequately explain the EU’s policy, in particular, these accounts tend to infer the EU’s motives from its activity. Rather than the EU pursuing a strategy, as implied by most of the existing literature, the EU was largely responsive, which explains why the relationship is much less developed than the EU’s relations with other parts of the world.

This paper assesses the possible effects of a free trade agreement (FTA) between MERCOSUR - a regional trade agreement between Brazil, Argentina, Paraguay and Uruguay - and the EU. The study takes into consideration the most important recent FTAs signed among the Latin American countries, as well as the latest European Union enlargements. Section I of the publication describes the trade relations between MERCOSUR and the EU putting focus on the reasons for negotiating and the recent trade relations between them. Section II describes the model, the country and the product aggregations and the simulation scenarios. Section III details the main results. Section IV concludes the study and brings in some insight about the key outcomes and recommendations.

How successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate? What are the determinants and dynamics of equilibrium real exchange rates? How can misalignments be measured, and what are their causes? What are the effects of specific policies upon the equilibrium exchange rate? The answers to these questions are important to academic theorists, policymakers, international bankers and investment fund managers. This volume encompasses all of the competing views of equilibrium exchange rate determination, from PPP, through other reduced form models, to the macroeconomic balance approach. This volume is essentially empirical: what do we know about exchange rates? The different econometric and theoretical approaches taken by the various authors in this volume lead to mutually consistent conclusions. This consistency gives us confidence that significant progress has been made in understanding what are the fundamental determinants of exchange rates and what are the forces operating to bring them back in line with the fundamentals.

The book draws comparison between MERCOSUR and the European Union to explain variation of regionalism and to expose its limits. The project is based on the idea that contemporary examples of regionalism should be evaluated against several propositions of multiple integration theories rather than against a single theory. In order to systematically explain why and how integration outcomes in MERCOSUR differ from those in the EU, the author develops an analytical framework for the comparison of the two blocs. MERCOSUR is compared with the EU by the use of the various criteria of economic interdependence, economic convergence, intra-bloc size and interest asymmetries, cultural diversity and geostrategic motivations, which are identified as the salient parameters of integration theories.

The European Union (EU) is at the forefront of engaging in external trade relations outside of the World Trade Organization (WTO) with entire regions and economic powerhouses. Understanding why and how the EU engages in one of the most active fields of external relations is crucial. This book fills a gap in the literature by analysing motives on the modes – bilateralism, inter-regionalism, or multilateralism - of EU external trade relations towards regional organizations in Asia and Latin America outside of the WTO. In particular, it examines why the EU turned from interregional to bilateral external trade relations towards these world regions – a question that is, to date, under-researched. By developing and testing an original approach rooted in realist theorizing coined ‘commercial realism’, it examines systematically the explanatory power of commercial realism against liberal-institutionalist approaches dominant in the literature on EU external relations through five in-depth case studies. This book will be of key interest to scholars and students in EU Politics/Studies, EU external relations, inter-regionalism and more broadly to International Relations and International Political Economy.

Interregionalism, the institutionalized relations between world regions, is a new phenomenon in international relations. It also a new layer of development in an increasingly differentiated global order. This volume examines the structure of this phenomenon and the scholarly discourse it is generating. It takes stock of empirical facts and theoretical explanations, bringing together with clarity and concision the latest research on this key area. This essential new book: * traces the emergence of interregionalism and reviews the latest literature * provides a conceptual and theoretical framework for study * includes case studies of inter-regional relations between: Asia and America; Asia and Europe; Europe and America; and Europe and Africa. * delivers comparative analyses and special cases such as continental summits and interregional relationships beyond the Triad. * summarizes and evaluates the findings of each chapter, providing a basis for further research. This is a key reference book for students and researchers of regionalism, global governance and international relations.