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Mercosur

Mercosur, or the Southern Common Market, is a customs union between Brazil, Argentina, Uruguay and Paraguay. It was originally set up in 1991. Bolivia, Chile, Colombia, Ecuador and Peru have associate member status. Bolivia may be incorporated as a full member soon. In June 2006, Venezuela signed on as a full Mercosur member, although its membership still has to be ratified by the parliament of Paraguay.

As an instrument of subregional integration, Mercosur has been used to carry out important harmonization processes between the member states in areas such as intellectual property, agricultural policy and labour law. But the group is also plagued by internal conflicts.

Mercosur as a bloc is currently negotiating bilateral free trade agreements with other blocs such as CARICOM, the Andean Community, European Union, and the Gulf Cooperation Council. It is also seeking one with the Dominican Republic.

Mercosur signed an FTA with Israel in December 2007 (which entered into force in September 2011) and another with Palestine in December 2011 after the four members recognised its statehood.

The possibility of Uruguay’s “breaking away” from Mercosur to sign its own FTA with the United States has created enormous tension within the group (not to mention within Uruguay). A similar situation exists with Paraguay.

last update: May 2012


EU’s neighbours strike Mercosur trade deal as Brussels awaits
The European Free Trade Association has clinched a trade agreement with Mercosur, while the EU’s own trade agreement with Mercosur has been delayed.
Mercosur, EFTA blocs finalize free-trade agreement, say sources
South American bloc Mercosur has concluded talks for a free-trade agreement with a group of four European nations known as EFTA.
Paraguay President pushes for expansion of India-Mercosur trade deal during state visit
Paraguayan President Santiago Peña Palacios has called for a renewed push to expand the trade agreement between India and the Mercosur bloc.
Brazil’s Lula says Mercosur, Canada should advance in trade deal talks
Brazilian President Luiz Inacio Lula da Silva is interested in advancing talks for a trade deal between South America’s Mercosur bloc and Canada in order to "diversify and expand our exchange".
Lula says Mercosur, Japan to discuss trade deal
Brazil’s President Luiz Inacio Lula da Silva said that he expects talks between South America’s Mercosur bloc and Japan on a trade deal to begin in the second half of the year.
S. Korea, Bahrain sign bilateral investment protection treaty
South Korea and Bahrain have signed a bilateral investment treaty on cementing the legal grounds for mutual investment and economic cooperation, Seoul’s foreign ministry said.
Brazil to work toward Mercosur-UAE deal in coming months, Lula tells UAE president
Brazilian President Luiz Inacio Lula da Silva told his Emirati counterpart that Brazil will work to seal a deal between South American trade bloc Mercosur and the United Arab Emirates in coming months.
Argentina-Japan: Buenos Aires supports economic partnership agreement with Mercosur
Argentina would support the adoption of an economic partnership agreement between the South American trade bloc Mercosur and Japan.
Mercosur-China trade talks must address imbalance, Paraguay says
South American trade bloc Mercosur would be willing to negotiate a trade agreement with China if it addresses the lopsided commerce between the two trading partners, Paraguay Foreign Minister said.
Paraguay open to China trade deals via Mercosur despite Taiwan ties, Pena says
Paraguayan President Santiago Pena is "fully open" to trade deals with China via South American trade bloc Mercosur, despite his country’s diplomatic ties with Taiwan.

    Links


  • MERCOSUR
    Mercado Común del Sur (MERCOSUR) is a common market between Argentina, Brazil, Paraguay, Uruguay and Venezuela.
  • MERCOSUR website
    Official website of MERCOSUR, a common market between Argentina, Brazil, Paraguay and Uruguay (in Portuguese and Spanish)