The United States, Argentina, and the Customs Union with Brazil, 1935-42
Author(s)
Tirre, Emilce
Abstract
Between 1935 and 1942, Argentina tried to liberalize its trade relations with Brazil to achieve the progressive elimination of tariff barriers by linking their exchange rates and harmonizing economic policies as far as possible, thus implementing a true customs union. Federico Pinedo, the promoter of this policy on the Argentine side, predicted market expansion for Argentine products and the appearance of new industries through less costly, more efficient production to compete in international markets, particularly in North America. For six years negotiations went on simultaneously with the United States and Brazil, and the signing of conventions, progressive agreements, and treaties meant the direct involvement of the three countries. Implicit in this for Argentina was the search for a solution to the trade deficit with the United States and the recurrent balance of payments crises. The article discusses the limits reached.
