Regional Market Strategies of Supermarkets and Food Processors in Extended MERCOSUR

This article examines regional actions among supermarket chains and food manufacturers (second–stage processors) in the extended MERCOSUR. It highlights the emergence of ‘regional multinationals’ operating in this market, which compete and sometimes co–operate with ‘global multinationals’. The harmonisation of customs regimes, the reduction of trade barriers such as tariffs and quotas, and the deregulation of foreign direct investment, have allowed multinationals — regional or global — to step up their regional activities. They increasingly undertake regional marketing strategies, are increasing their investment in the region’s markets, and are causing new regional procurement systems to emerge.