Course summary (MERCOSUR Southern Common Market)
The Mercosur (Southern Common Market) is the 4th biggest economic bloc in the world with a
Gross domestic product (GDP) of 1.989 billion USD and a population of 242 million. Brazil is the biggest economy
(79% of the
Gross domestic product of Mercosur), followed by Argentina (18%).
The Southern Common Market (MERCOSUR) was created by
Argentina, Brazil, Paraguay and
Uruguay in 1991 with the signing of the
Treaty of Asuncion.
NOTES
- Paraguay was suspended of the Mercosur in 2012
- Venezuela is member of the Mercosur since 2012
- Bolivia has Protocol of adhesion to Mercosur in 2013
The
Asuncion Treaty
is based on the doctrine of the reciprocal rights and obligations of the
Mercsour's member economies.
Objectives of MERCOSUR (Southern Common Market)
- Free transit of products, services and factors between the member economies
of Mercosur;
- Fixing of a Common external tariff (TEC) and adopting of a common
international trade policy;
- Coordination of macroeconomic and sectorial policies of member States relating to
foreign trade, agriculture, industry, taxes, monetary system, exchange and capital,
trade of services, customs, international transport
and communications
- The engagement by the members of Mercosur to make the necessary adjustments to their laws in pertinent areas to allow for the strengthening of the
integration process.
Example of the course the Southern Common Market (MERCOSUR):
Associate members of the Southern Common Market (MERCOSUR): Bolivia, Chile, Colombia, Ecuador and Peru.
Observers countries: Mexico.
Adhesion of the Bolivarian Republic of Venezuela to
Southern Common Market (MERCOSUR). In 2006 it signed the Protocol of Accession of Venezuela to MERCOSUR. The entry of Venezuela to the bloc will occur gradually.
The European Union (EU) - Mercosur relationship is based on the European Union - Mercosur Interregional Framework cooperation agreement signed
in 1995 in Madrid between
the European Union and its member economies and the Mercosur and its Party States. The European Union is
the biggest trade partner of Mercosur and the biggest foreign investor in the region.
The intra-Southern Common Market (MERCOSUR) trade tariff is 0% and a Common external tariff
(CET) applies to trade with non-Mercosur countries. A Preferential Trade Agreement with India is in place, a free-trade agreement with Israel is awaiting
Congress' approval and different international trade agreements are under negotiation with the Southern African Customs Union (SACU), countries of the
Gulf Cooperation Council (GCC) and Morocco.
Web Site MERCOSUR: http://www.mercosur.int/
