Mercosur

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Mediators at the Niagara Falls peace conference, 1914

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Edificio Mercosur - panoramio (10)

Izamiento

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Dilma Rousseff and Nicolás Maduro at 48th Mercosur Summit (2)

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Monte Aconcagua

Amazonie

Mercosur or Mercosul (Spanish: Mercado Común del Sur; Portuguese: Mercado Comum do Sul; Guarani: Ñemby Ñemuha; English: Southern Common Market) is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay, and Uruguay. Venezuela is a full member but has been suspended since December 1, 2016. Associate countries include Chile, Bolivia, Colombia, Ecuador, Guyana, Peru, and Suriname.

History

The formation of Mercosur was motivated by the desire to facilitate common market access, promote the free movement of goods, services, and people, and advance regional economic integration in South America. The Treaty of Asunción laid the foundation for the trade bloc, aiming at the establishment of a common market. The Protocol of Ouro Preto granted Mercosur its legal status, defining its structure and decision-making process.

Objectives

Mercosur's primary objectives include:

• Promoting free trade and the fluid movement of goods, people, and currency.
• Coordinating macroeconomic and sectoral policies between member states, covering areas such as foreign trade, agriculture, industry, and taxes, to ensure competitiveness.
• Harmonizing legislation in relevant areas to strengthen integration.

Structure

The organizational structure of Mercosur includes:

• The Common Market Council (CMC), which is the highest decision-making body and is composed of the Ministries of Foreign Affairs and Economy of the member states.
• The Common Market Group (GMC), responsible for executing the policies proposed by the CMC.
• The Mercosur Trade Commission (CCM), tasked with promoting trade and investment within the bloc.
• The Parliament of Mercosur (PARLASUR), which aims to develop a harmonized legislation for member countries.

Membership

1. 1. 1. Full Members

• Argentina
• Brazil
• Paraguay
• Uruguay
• Venezuela (suspended)

1. 1. 1. Associate Members

• Chile
• Bolivia
• Colombia
• Ecuador
• Guyana
• Peru
• Suriname

Economic Impact

Mercosur has significantly impacted the economies of its member states, increasing trade flows within the region and facilitating access to a larger market. It has also negotiated external trade agreements, aiming to enhance its members' global trade presence.

Challenges

Despite its achievements, Mercosur faces several challenges, including economic disparities among member states, political instability, and the need for infrastructure development. The bloc's effectiveness is often hindered by internal disagreements and external economic pressures.

Future Directions

The future of Mercosur lies in addressing its internal challenges, furthering economic integration, and strengthening its position in the global economy through strategic external trade agreements and partnerships.

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