Mercosur

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Mercosur

The Mercosur treaty creates something of a free trade zone among countries in the southern part of South America. The related Mercosur organization posts materials in Spanish. For information about Mercosur materials, see A Guide to MERCOSUR Legal Research: Sources and Documents.

Introduction to Mercosur

The Mercosur is a regional trade organization formed in 1991 to establish a common market and a common trade policy toward outside nations. Mercosur has five member countries-Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Bolivia, Chile, Colombia, Ecuador, and Peru are associate members of Mercosur.

Mercosur takes its name from Mercado Común del Sur (Spanish for “Common Market of the South”). It is also sometimes referred to as the Southern Cone Common Market. The organization has its origins in a trade treaty signed by Argentina and Brazil in 1986. In 1990 these countries joined with Uruguay and Paraguay to form a free-trade zone, which allows unrestricted trade between the four countries. In 1995 the member nations formed a customs union, in which they agreed to reduce or eliminate trade barriers between member countries and adopt a common trade policy toward outside nations. In 2006 Venezuela became a full member of Mercosur after being an associate member since 2004. Venezuela’s entry raised the combined annual gross domestic product of Mercosur to $1 trillion.

A fundamental part of Mercosur is a common external tariff (CET), a complex schedule of taxes that apply to imports from nonmember countries. The purpose of the CET is to protect the developing industries of member countries from outside competition, and to create a larger internal market for goods and services produced by Mercosur partners.

Since its inception Mercosur has continued to grow and pursue a wider role in world trade. In 1995 the organization began working with the European Union (EU) in an attempt to forge a free trade agreement between the two groups. Chile became an associate member of Mercosur in 1996, with Bolivia (1997), Peru (2003), Colombia (2004), and Ecuador (2004) achieving the same status in ensuing years. In 2004 Mercosur joined with the Andean Community to form the South American Community of Nations, bringing wider economic integration to the continent. The alliance became the world’s third largest trading bloc, behind the EU and the economies of the countries party to the North American Free Trade Agreement (NAFTA). See also Foreign Trade; Free Trade.” (1)

Mercosur in International Trade

Meaning of Mercosur, according to the Dictionary of International Trade (Global Negotiator): The Mercado Común del Sur (Southern Common Market) is an economic and commercial group of countries is South America comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela with associate countries like Chile, Bolivia, Colombia, Ecuador and Peru. Its purpose is to promote free trade and the fluid movement of goods, people, and currency till form a common market. Website.

Definition of MERCOSUR

Within the context of international organizations, the following is a brief meaning of mercosur: Mercosur is a custom union in South America. Its member countries are Argentina, Brazil, Paraguay, Uruguay and Venezuela. Its associate countries are Chile, Bolivia, Colombia, Ecuador and Peru. Observer countries are New Zealand and Mexico. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.

Mercosur

Mercosur, an abbrevation of the Spanish Mercado Común del Sur (Southern Common Market), was founded in 1991 by the Treaty of Asunción (amended and updated by the 1994 Treaty of Ouro Preto). Its main mission is to promote free trade and the free movement of goods, people, and currency in member countries:

World economic regions (outside EU) and Mercosur (dark brick)

Argentina (AR) Brazil (BR)

Paraguay (PY) Uruguay (UY)

Bolivia, Chile, Colombia, Ecuador and Peru have associate member status.

Resources

See Also

  • International Organization
  • Foreign Relations
  • Intergovernmental Organization
  • Regional Organization
  • Regional Integration

Resources

Further Information

Mercosur’s official website

See Also

Andean Community (CAN)

North American Free Trade Agreement (NAFTA)

Resources

See Also

  • International Organization

Resources

Notes and References

Guide to Mercosur

MERCOSUR in International Trade

Resources

See Also

Southern Common Market.

Hierarchical Display of Mercosur

International Organisations > Extra-European organisations > Latin American organisation
Geography > Economic geography > Mercosur countries
Economics > Economic structure > Economic system > Common market

Mercosur

Concept of Mercosur

See the dictionary definition of Mercosur.

Characteristics of Mercosur

Resources

Translation of Mercosur

Thesaurus of Mercosur

International Organisations > Extra-European organisations > Latin American organisation > Mercosur
Geography > Economic geography > Mercosur countries > Mercosur
Economics > Economic structure > Economic system > Common market > Mercosur

See also

  • Mercosul
  • South American Common Market
  • Southern Common Market
  • Southern Cone Common Market

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