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Foreign Investment Climate Within Mercosur And Business Opportunities

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Chapter Summary

This chapter first overviews the legal regime for foreign investment and intellectual property rights protection in MERCOSUR countries, and then examines the issues of free movement of labor and environmental protection. The free market economic policies adopted by the four core MERCOSUR countries (Argentina, Brazil, Paraguay, and Uruguay) in the 1990s meant liberalized foreign investment regimes, deregulation, and the privatization of state-owned enterprises that contributed to making the subregion a magnet for foreign direct investment. MERCOSUR was and continues to be incorporated into the strategic business planning of many companies operating in the region, and the chapter provides an overview of examples in various sectors: automobiles, auto parts, beverages, computers and informatics, electronic appliances and mobile telephony, forestry and paper products, lactate industry, other manufactured goods, petrochemicals, pharmaceuticals, processed foodstuffs, services, steel, textiles/apparel and footwear, and transportation. The chapter also discusses the Argentine Energy Crisis and its impact on investment.

Keywords: Argentinas energy crisis; Brazilian investment; environmental protection; foreign investment; intellectual property rights; intellectual property rights protection; labor issues; MERCOSUR countries; Paraguayan economy; Uruguayan economy



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