From interregionalism to bilateralism: Power and interests in EU-Brazil trade cooperation

Abstract

This chapter will focus, within the context of its relations with Latin America and more specifically Mercosur (Mercado Comùn del Sur), on the EU relations with Brazil. Bilateral cooperation, in this case group-to-country cooperation between the EU and Brazil was institutionalised at the Lisbon Summit of July 2007 culminating in the EU-Brazil strategic partnership. This partnership is an indication of the EU’s recognition of the position Brazil today occupies in the international system. On the other hand, it lays bare the EU’s limited success with Mercosur. This shift from an interregional approach with Mercosur to one of bilateral engagement with Brazil leads to the question why after so many years of efforts made to develop group-to-group relations with Mercosur, has the EU shifted to direct bilateral relations with Brazil? In answering this question, a dual-causal framework highlighting basic characteristics of two theoretical paradigms in international relations, neorealism and liberalism, will be applied.