bound trade. As such, Brazil’s commercial geography has been functionally differentiated
between global and regional demand. Brazil occupies a semi-peripheral position in the
wider global system, yet performs the role of a regional core in its proximate
neighbourhood (Vadell & Giaccaglia, 2021). This outcome is far from being incidental but,
according to Hurrel (1995), represents a pattern across various other similar cases.
Brazil’s neighbours, with their similar consumption culture, technological preferences,
and, most critically, corresponding regulatory frameworks, were a natural stimulus to
Brazil’s value-added commodities (Vigevani et al., 2012, p. 517; Medeiros, 2013, p.78).
Before turning to UNASUR and the political dimensions of the Southern Market, it is
appropriate to outline the economic rationale of the era—one more time. Lula’s
developmental and autonomy-seeking approach to regionalism relied on a sequencing
strategy. Accordingly, the economic integration of Brazil with the rest of the region was
conceived as an adaptive mechanism. The establishment of firm economic ties with
neighbours of comparable or lesser developmental levels was expected to enable
homegrown industries to acquire competitiveness, diversify production, and achieve
economies of scale. Following this phase of adaptation and learning, Brazil would be
better positioned to compete within global markets.
Buzan and Wæver’s Regional Security Complex Theory, with its broader analytical
insight, is relevant here. Recalling their key point, proximity amplifies cross-border
interactions of all kinds, ranging from technology diffusion to knowledge spillovers, to
economic recessions and violent conflicts. These networks of interdependencies, in
return, generate incentives for institutional coordination. The UNASUR provides a useful
point of comparison. The stated expansion of intraregional trade seemed to urge greater
policy coordination, regulatory harmonization, infrastructural integration, and dispute
management among neighboring states (Carranza, 2006, p. 808; Santos, 2015, p. 44).
Whereas MERCOSUR was entrusted with trade and industrial coordination, UNASUR’s
primary duty was to work as a governance mechanism with the purpose of cohering the
South American political space. More specifically, for Brazil, UNASUR undertook the job
of facilitating multilateral cooperation, mediating disputes, and helping construct norms
that the South American nations would willingly abide by (Carranza, 2006; Vadell &
Giaccaglia, 2021). In the name of bringing partner states into an institutional setting
where they could resolve their mutual vulnerabilities, UNASUR was designed to address
crises without reliance on extra-regional institutions. This function is especially tangible
in its early phases. According to Schenoni (2016) and Mesquita (2016), it performed its
primary function adequately by initiating diplomatic coordination during the 2008 Bolivian
crisis, the 2010 Ecuadorian police revolt, debates surrounding US military access to
Colombian bases in 2009, and collective responses to Paraguay’s 2012 political crisis.
Yet, notwithstanding these success stories, UNASUR fell short of performing the duties
of its counterparts in the European Union. The major deficiency that restrained UNASUR
was that, as a supragovernmental institution, it failed to assert autonomous power above
the constituent states. In other words, its efficiency was a product of the level of
consensus and political convergence.
The ability of UNASUR to manage the partners’ differences started to decline drastically
as a direct result of the waning global economic boom in the post-2008 period. As
explained before, the economic expansion, which coincided with the beginning of Lula’s