ABSTRACT
Brazil had built an almost complete industrial estate and had linked its economic dynamics to the domestic market. Its international trade, formerly the main economic activity, had a complementary role. The country had taken on a new role in the international division of labour. The former exporter of raw materials and agricultural products, although preserving its peripheral situation, became an industrialised economy of an intermediate income level. Foreign policy has followed its pendulum pattern, economic policy was characterised by steadiness, though lacking any popular support. The strategy of Brazil's foreign policy intends to link regional integration, international trade and development. This approach is followed in three arenas of negotiations: the multilateral negotiations in the World Trade Organisation (WTO), the bilateral negotiations for free trade agreements, and the regional integration of South America. Mercado Comun del Sur (MERCOSUR) wants to deal with those themes only within the multilateral arena of the WTO and intends to restrain the bi-regional agenda to trade.
