Relations between Brazil and Argentina, the two biggest members of Mercosur, the South American trade block, have been stormy recently. Argentina's economy minister, Domingo Cavallo, has accused Brazil of upsetting trade by deliberately devaluing-the real is down about 30% so far this year-and even of betting on the collapse of Argentina's currency-board system, which pegs its peso. In reply, President Fernando Henrique Cardoso has called the comments "beyond the limit", and Brazil has threatened to retaliate against Argentina's suspension of some of Mercosur's common import tariffs.
展开▼
