Mixed results from Mercosur preferential trade agreement

Trade between South Africa and Uruguay has seen the greatest percentage growth among Mercosur countries since a preferential trade agreement with Southern African Development Community (SADC) members came into effect on April 1, 2016.The Mercosur signatories are Brazil, Argentina, Uruguay, and Pa rag uay.Although the numbers are small, the biggest statistical growth has been between SA and Uruguay. According to the OEC, SA exports to Uruguay have grown by 5.76% a year, from $9.48 million in 1995 to $43m in 2022.The export basket consisted mainly of trailers and semi-trailers ($9.81m), large f lat-rolled stainless steel ($6.71m), and combustion e ng i ne s ($5 , 67 m). SA imports from Paraguay grew by 5.97% a year, from $6.74m in 1995 to $32.2m in 2022. The main categories were concentrated milk ($8.58m), packaged medicaments ($5.29m), and butter ($4.16m). Of greater significance is the trade between SA and Brazil.SA exports to Brazil grew by 3.08%, from $375m in 1995 to $851m in 2022.In 2022 the main SA exports to Brazil were platinum ($2 9 7 m), c o a l briquettes ($81.1m), and centrifuges ($79.7m).Brazil’s exports to SA grew by 6.83% over the same period, from $296m in 1995 to $1.76 billion in 2022, leaving SA with a trade deficit of $909m. SA’s main imports from Brazil in 2022 were refined petroleum ($270m), poultry meat ($200m), and tractors ($108m).Trade with Argentina has remained static, with exports from SA increasing by 0.7% a year, taking the total from $362m in 1995 to $438m in 2022.SA’s main exports were motor vehicles, parts, and accessories ($37.4m) in 2022.Argentinian exports to SA grew by 0.93% a year, from $362m in 1995 to $438m in 2022.SA imported wheat to the value of $108m in 2022, followed by soybean meal ($84.6m), and delivery trucks ($47.6m).In contrast, SA exports to Paraguay have dropped by 1.19% a year and imports by 2.16% a year.In 2022 SA exported goods to the value of $9.75m (primary hard liquor) and imported $2.46m, primarily other uncoated paper ($1,1m).The biggest statistical growth in South American trade has been with Mexico, which was not part of the agreement.Exports grew by 7.05% a year, from $58.1m in 1995 to $365m in 2022, and imports from $34.2m in 1995 to $465m in 2022.Export products in 2022 were mainly delivery trucks ($63.1m), corn ($61.2m), and large f lat-rolled stainless steel ($39.6m). Mexican exports were cars ($62.3m), medical instruments ($39.6m), and motor vehicles; parts and accessories ($29.6m)