Mercosur

Southern Common Market
  • Spanish:Mercado Común del Sur
    Portuguese:Mercado Comum do Sul
    Guarani:Ñemby Ñemuha
Motto: 
[citation needed]
  • "Nuestro norte es el Sur" (Spanish)
  • "Nosso norte é o Sul" (Portuguese)
  • "Yvy mba'e yvate ojehegui" (Guarani)
  • "Our North is the South"
Dark green: full members. Red: suspended members. Blue: acceding members.
Dark green: full members.
Red: suspended members.
Blue: acceding members.
HeadquartersMontevideo
Largest citySão Paulo
Official languages
TypeIntergovernmental organization and customs union
Membership
1 suspended
7 associated
2 observers
Leaders
Santiago Peña
LegislatureParlasur
Formation
• Iguaçú Declaration
30 November 1985
• Buenos Aires Act
6 July 1990
26 March 1991
16 December 1994
Area
• Total
11,879,134 km2 (4,586,559 sq mi) (2ndb)
• Water (%)
1.0
Population
• 2022 estimate
Increase 273,601,804[1] (5thb)
• Density
23/km2 (59.6/sq mi) (204thb)
GDP (PPP)2022 estimate
• Total
Increase US$5.195 trillion[2] (6thb)
• Per capita
US$18,987[2] (78thb)
GDP (nominal)2022 estimate
• Total
Increase US$2.638 trillion[2] (8thb)
• Per capita
US$9,643[2] (79thb)
HDI (2019)Increase 0.788[3]
high (70tha)
Currency
4 currencies
Time zoneUTC-2 to UTC-5
Date formatdd/mm/yyyy (CE)
  1. Considering Mercosur as a single entity.

The Southern Common Market,[a] commonly known by Spanish abbreviation Mercosur, and Portuguese Mercosul, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.[4]

Mercosur's origins are linked to the discussions for the constitution of a regional economic market for Latin America, which go back to the treaty that established the Latin American Free Trade Association in 1960, which was succeeded by the Latin American Integration Association in the 1980s. At the time, Argentina and Brazil made progress in the matter, signing the Iguaçu Declaration (1985), which established a bilateral commission, which was followed by a series of trade agreements the following year. The Integration, Cooperation and Development Treaty, signed between both countries in 1988, set the goal of establishing a common market, which other Latin American countries could join. Paraguay and Uruguay joined the process and the four countries became signatories to the Treaty of Asunción (1991), which established the Southern Common Market, a trade alliance aimed at boosting the regional economy, moving goods, people among themselves, workforce and capital. Initially a free trade zone was established, in which the signatory countries would not tax or restrict each other's imports. As of 1 January 1995, this area became a customs union, in which all signatories could charge the same quotas on imports from other countries (common external tariff). The following year, Bolivia and Chile acquired membership status. Other Latin American nations have expressed interest in joining the group.

Mercosur's purpose is to promote free trade and the fluid movement of goods, people, and currency. Since its foundation, Mercosur's functions have been updated and amended many times; it currently confines itself to a customs union, in which there is free intra-zone trade and a common trade policy between member countries. In 2023, the Mercosur had generated a nominal gross domestic product (GDP) (PPP) of around 5.7 trillion US dollars, placing the bloc as the 5th largest economy in the world. The bloc places high on the human development index. It has signed free trade agreements with Egypt, the European Union, Israel, Japan and Singapore.

  1. ^ "World Economic Outlook Database". IMF. April 2012. Archived from the original on 9 June 2015. Retrieved 8 November 2022.
  2. ^ a b c d "Report for Selected Countries and Subjects". www.imf.org. April 2019. Archived from the original on 7 June 2020. Retrieved 8 November 2022.
  3. ^ "2020 Human Development Report" (PDF). United Nations Development Programme. 2020. Archived (PDF) from the original on 15 December 2020. Retrieved 16 December 2020.
  4. ^ "De West – Suriname en Guyana officieel Geassocieerd Lid Mercosur -". 20 July 2015. Archived from the original on 29 August 2016. Retrieved 2 December 2016.


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