Bounded by the Reality of Trade: Practical Limits to a South American Region

This article argues that regionalism in South America will meet with limited success because continental and subregional integration projects lack the necessary economic underpinnings. The result is an incomplete form of regional integration that, while offering some rewards to the participating countries, predominantly serves the energy security needs of the region's major players. Brazil, in particular, benefits from this process and also is the prime reason that regionalism in South America will not deepen. Without a major state to absorb the costs of region-building the process will stall. As the evidence in this article implies, Brazil is not willing to absorb these costs, placing severe limits on the region and regional acceptance of Brazilian leadership.