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Business in America - Institutions
Southern Common Market (MERCOSUR) / Mercado Común del Sur
Summary
Mercosur. Treaty of Asuncion. EU-Mercosur relationship. Free transit of production goods, services and factors common external tariff (TEC), common market, ...
The Mercosur was created by
Argentina, Brazil,
Paraguay and
Uruguay in March 1991
with the signing of the Treaty of Asuncion.
Associate members: Bolivia,
Chile, Colombia,
Ecuador and
Peru.
Observers: Mexico.
Objectives of MERCOSUR
- Free transit of production goods, services and factors between the
member states with inter alia, the elimination of customs
rights and lifting of nontariff restrictions on the transit of goods or any
other measures with similar effects;
- Fixing of a common external tariff (TEC) and adopting of a common trade
policy with regard to nonmember states or groups of states, and the
coordination of positions in regional and international commercial and
economic meetings;
- Coordination of macroeconomic and sectorial policies of member states
relating to foreign trade, agriculture, industry, taxes, monetary system,
exchange and capital, services, customs, transport
and communications, and any others they may agree on, in order to ensure
free competition between member states; and
- The commitment by the member states to make the necessary adjustments to
their laws in pertinent areas to allow for the strengthening of the
integration process. The Asuncion Treaty is based on the doctrine of the
reciprocal rights and obligations of the member states
MERCOSUR initially targeted free-trade zones, then customs unification and,
finally, a common market, where in addition to customs unification the free
movement of manpower and capital across the member nations' international
frontiers is possible, and depends on equal rights and duties being granted to
all signatory countries.
The EU-Mercosur relationship is based on the EU-Mercosur Interregional
Framework Co-operation Agreement signed on 15 December 1995 in Madrid between
the EC and its Member States and the Mercosur and its Party States.
Available Languages: 
(MERCOSUL)
MERCOSUR, Southern Common Market, Argentina, Brazil, Paraguay, Uruguay, Treaty of Asuncion, EU-Mercosur, relationship, Free transit, production goods, services, factors, common external tariff, TEC, common market, Master, International Business
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