World's economy with Europe making up another 1/4. For now many countries are
> accepting the continual drop in returns for their exports to the US, but the day
> is pretty close when they will want to switch to the Euro.
"In 1995, however, the Europe Union (EU) challenged the historical memory of the venerable doctrine by signing the Framework Cooperation Agreement with Mercosur, the South American Common Market of Brazil, Argentina, Paraguay and Uruguay.
"After negotiations lasting almost ten years, the EU and Mercosur plan to finalize the agreement in October, solidifying what may evolve into one of the most powerful trading blocs in the world."
"An accord between the two giant trading blocs has the potential to upset and shift the balance of power in the global trade arena"
"Europe - prepared to equal or even replace the United States as the dominant trading power on the South American continent. The United States' hegemonic status in the Americas is in peril."
"The EU-Mercosur free trade agreement without a question is a threat to the United States' dominance in the region. Europe's belated decision to open its agricultural markets to foreign competition leaves Washington in a precarious position at the negotiating table"
"As the United States' soft power continues to decline in the region, Europe 's global stock looks increasingly more appealing "
"There is no question that U.S.-Latin America relations are at their lowest point in a generation."
The background appears to be that President da Silva, sceptical of the chances of rich countries further reducing their trade barriers, is seeking to enhance trade ties with other developing nations.
In a recent address to the Arab League, the Brazilian President outlined a vision of south-south co-operation that could involve South America, Africa, the Arab world, China and India, "creating a new global political and commercial architecture." "