Mercosur After Chavez

A redesigned “Tordesillas Line” is being drawn in Latin America that will divide “Atlantic” and “Pacific” nations. Atlantic nations are rapidly turning into protectionist nations plagued by heavy bureaucracy, heavy taxes, and an intervening and expanding state. Pacific nations, however, are embracing transparency and market‐driven policies, bringing a new dynamism to their economies. The legacy of Hugo Chavez (“Chavismo”) is capable of perpetuating Chavez's legacy in Mercosur, impregnating the trading bloc with a strong political and economic bias, further moving the trading bloc away from mainstream globalization forces. This article will elaborate on the main challenges and opportunities permeating Mercosur after Chavez. The recently created “Alliance of the Pacific” (AP) revives the economic agenda for Latin American trading blocs, and provides a comparison to Mercosur's agenda, impregnated with ideologies and political agendas. © 2014 Wiley Periodicals, Inc.