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36 STiR coffee and tea | 2024 Issue 3 (June / July) Brazil Population 215 million GDP: $4.1 trillion Bolivia Population 12 million GDP: $125 billion Peru Ecuador Colombia Venezuela Guyana Suriname French Guiana Chile Argentina Population 46 million GDP: $1.3 trillion Uruguay Population 3.4 million GDP: $113 billion Paraguay Population 6.8 million GDP: $110 billion Mercosur Andean Community (Mercosur associates) Neither Bloc (Mercosur associate) The fair trade agreement would be Europe's largest to date, covering 450 million Europeans and 280 million South Americans - 10% of the world's population and 20% of global GDP. Venezuela, Brazil, Argentina, Uruguay, Paraguay, and Bolivia are full Mercosur members, while Peru, Ecuador, and Colombia are part of the Andean community. Source: World Bank I GDP Reported in PPP National elections in Argentina have further complicated negotiations. In March, the new government's Foreign Minister, Diana Mondino, pressed for the "modern- ization" of the rules negotiated 25 years be- fore. She called for additional countries to be admitted to the bloc (Bolivia joined in 2023) and for a separate controversial free- trade agreement with China. Trade officials representing Merco- sur countries are negotiating agreements with UAE, Vietnam, and the Association of South East Asian Nations (ASEAN). The European Council on Foreign Relations (ECFR) writes that signing the agreement will encourage diversification of economic ties to China. The organi- zation is concerned that "further delays in signing a free trade deal would push Latin America closer to China's orbit – for good." China is the top destination for Mercosur exports, and Beijing has an- nounced plans to invest $250 billion in the region by 2025. ECFR reports that Brazil has 20% of the world's graphite, nickel, and man- ganese reserves and 94% of niobium reserves needed in aerospace manufac- turing. Argentina has the world's third largest lithium reserves, essential for electric-vehicle batteries. "European in- stitutions are hard at work trying to find ways to convince EU firms to relocate supply chains away from China, ideally to like-minded countries (democracies)," according to ECFR. Brazil's $4.1 trillion GDP economy and Argentina, with $1.3 trillion in GDP (PPP), initiated the free trade agreement 32 years ago. Founding members of the Mercado Común del Sur (Southern Common Mar- ket) include Uruguay and Paraguay in 1991. Mercosur is currently the world's fifth-larg- est market at $5.7 trillion (PPP) and has a population of 750 million. AWAKEN * *SYNONYM: STiR, stimulate, animate, arouse, excite... Don't Miss a Single STiRring Issue of the World's Leading Industry Magazine for Coffee and Tea. AWAKEN a paid subscription to STiR (coffee and tea magazine) | Visit stir-tea-coffee.com/subscribe | Email malisa@stir-tea-coffee.com w w w. s t i r - t e a - c o ff e e . c o m w w w. s t i r - t e a - c o ff e e . c o m South America Trade Blocs