The Brussels effect and the challenge to the International Financial System

The role of the Mercosul in Global Governance from a TWAIL perspective

Abstract

This article examines the impact of the Brussels Effect on International Economic Law, with a focus on its implications for the Global South. The concept, formulated by Anu Bradford, describes the European Union's ability to globally export regulatory standards, shaping economic and legal practices even in the absence of formal treaties. While this harmonization brings benefits such as greater transparency and governance, it poses significant challenges for peripheral economies, particularly regarding regulatory sovereignty and adaptation to Eurocentric standards that overlook local contexts. The research adopts a deductive methodology, utilizing a bibliographic analysis and a study of national and international legislation to explore the interaction between normative centralization and legal pluralism. The study highlights how critical approaches, such as TWAIL (Third World Approaches to International Law), question the impact of the Brussels Effect in perpetuating structural inequalities within the global system. Furthermore, it analyzes regional alternatives, such as Mercosur, as strategies to strengthen the economic and legal autonomy of the Global South. The article concludes that local and regional initiatives, combined with the promotion of legal pluralism, are essential to fostering a more inclusive economic governance aligned with diverse global realities.