Mercosur
Mercosur, officially known as the Common Market of the South, is a South American trade bloc established by the Treaty of Asunción in 1991 and later formalized by the Ouro Preto Protocol in 1994. Here is a detailed overview of Mercosur:
History
- Formation: The idea of economic integration in South America began in the 1980s, but it was not until 1991 that the bloc was officially established with the signing of the Treaty of Asunción by Argentina, Brazil, Paraguay, and Uruguay.
- Expansion: Venezuela joined in 2012, but its membership was suspended in 2016 due to political issues. Bolivia has been in the process of full membership since 2015.
- Objectives: The primary goals include promoting free trade and the fluid movement of goods, people, and currency; to this end, the bloc has worked on reducing or eliminating customs duties.
Structure
Trade and Economy
- Trade Liberalization: One of Mercosur's main achievements has been the significant reduction of tariffs among member countries, aiming for a common external tariff.
- Internal Market: Efforts have been made to create an internal market similar to the European Union, allowing for the free movement of goods, services, and factors of production.
- Disputes: There have been several trade disputes among member countries, particularly regarding agriculture and industrial policies, which have slowed down the integration process.
Political and Social Aspects
- Political Integration: While economic integration is the primary focus, there are also efforts towards political cooperation, including discussions on a common currency.
- Human Rights: Mercosur has a commitment to democracy and human rights, and countries with political crises have faced suspension or scrutiny.
External Relations
- Trade Agreements: Mercosur has been negotiating trade agreements with various countries and blocs, including the European Union, EFTA, and others.
- International Presence: The bloc aims to increase its influence globally, often acting as a collective in international negotiations.
Challenges
- Integration Pace: The speed of integration has varied, with economic disparities among members and protectionist tendencies causing delays.
- Asymmetry: The economic size of Brazil and Argentina compared to smaller member countries creates imbalances in decision-making and benefits.
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