ABSTRACT
The Southern Common Market (Mercosur) is often examined as an example of “post-neoliberal” regional economic blocs. “Integration optimists argue that regional blocs in Latin America are alive and well, but integration pessimists claim that postneoliberal regionalism is not transformative and is condemned to failure”. This chapter examines the history of Mercosur, including failed attempts to “relaunch” the bloc and the crisis provoked by the suspension of Paraguay at the Mendoza Presidential summit in 2012. It discusses the impact of Brazil’s “consensual hegemony” in South America on Mercosur’s prospects for resilience or decline and examines how different International Relations theories address the issue of Mercosur’s resilience or decline. The geopolitical changes and the global economic crisis of 2008–2009 have clearly redefined Brazil’s foreign policy, leading it to strengthen its resolve to become a global player, even if such an approach weakens Mercosur.
