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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


Mercosur signs trade deals with SACU, Turkey, Jordan
Leaders of the South American trade bloc Mercosur meeting at a summit in Argentina have signed trade agreements with the Southern African Customs Union, as well as with Turkey and Jordan.
Rifts threaten to overshadow South American union
Twelve South American countries founded a union on Friday aimed at boosting economic integration and political cohesion, but the region’s bitter rivalries stymied ambitious plans on defense and trade.
Paraguay backs Venezuela’s bid for full membership of Mercosur
Paraguay supports Venezuela’s bid for full membership of the Common Market of the South (Mercosur), visiting Paraguayan Foreign Minister Ruben Ramirez said here Tuesday.
Venezuela will help Mercosur become continental block
Mercosur with Venezuela included has “the potential of becoming a trade block of the whole of South America” said Brazilian Foreign Affairs minister Ceslo Amorim who also insisted that keeping out of the Washington inspired Free Trade Area of the Americas, FTAA, “has been positive”.
Venezuela OK’d for MERCOSUR
The Commission of the Constitution and Justice (CCJ) of the Brazilian Chamber of Deputies approved the entrance of Venezuela to the Common Market of the South (MERCOSUR).
Brazilian signal for Venezuela’s Mercosur membership
The Brazilian Lower House Constitution and Justice Committee passed on Wednesday a motion for the long awaited incorporation of Venezuela to the South American trade block, Mercosur. However Venezuelan membership still faces a full debate in the House and must convince the Brazilian Senate.
Mercosur-Venezuela: Integration - Easier said than done
Above and beyond the political rhetoric in favour of South American integration, Mercosur and Venezuela have not eliminated their mutual suspicions, which are delaying Venezuela’s admission to the trade bloc as the fifth full member
Mexico in Mercosur ’essential’
Mexico’s entry to Mercosur is “essential,” President Néstor Kirchner insisted yesterday after a meeting with his Mexican peer Felipe Calderón in Mexico City.
Mercosur summit calls for unity and not much more
Mercosur presidential summit in Paraguay approved Friday steps to speed cross-border shipments of meat and vegetables on Friday, but postponed action on other key issues amid calls for greater unity.
Unapologetic Venezuela urges Brazil, Paraguay to approve entry into Mercosur
Brazil wants a "goodwill gesture" from Venezuela before its Congress votes it into the Mercosur trade bloc, but President Hugo Chavez’s government indicated Thursday it won’t be extending an olive branch any time soon.

    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)