How trading blocks are shaking out in S. America

i love the way that being suspicious of bilateral trade agreements with the u.s. is implied to be a BAD thing... you ALWAYS have to read between the lines... you can never let down your guard...

Little by little, South America is dividing itself into two very different trade blocks. Mercosur, based on Brazil and Argentina and recently joined by Venezuela, is relatively protectionist and suspicious of bilateral trade deals with the United States. Most countries on the Pacific seaboard are committed to free trade with both el norte and Asia.

[...]

This continental divide is far from absolute. Chile, with the most open economy in the region, is an associate member of Mercosur (it has a free-trade agreement with the block, but is not part of its putative customs union). So are Peru and Bolivia. Ecuador and especially Bolivia have reservations about closer ties with the United States. Not so Paraguay and Uruguay, although both are members of Mercosur.

[...]

Chile argues that South American countries need to pool their export efforts to be able to supply the volume of products demanded by China and other Asian countries. Chilean officials insist they will maintain their ties with Mercosur. Argentina, under Néstor Kirchner, is an especially difficult neighbour: in 2004 it unilaterally cut gas exports to Chile, and then this year raised taxes on them. But Argentina and Brazil are Chile's most important local trading partners.

for some reason i cannot fathom, no mention is made in the article of bolivia's recent actions against foreign oil and gas companies operating there or of bolivia's rather large price hikes on exports... failing to include that rather critical piece of information makes argentina look like a bully but maybe that's the idea...

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