Mercosur is the abbreviation for Southern Common Market, a south american economic bloc officially formed by Brazil, Argentina, Uruguay andParaguay.
Mercosur's main objective is to ensure the construction of economic, political and social consolidation among the member countries, collaborating to increase the quality of life of citizens living in the States that constitute the block.
As its name suggests, Mercosur aims to define a common market between the governments belonging to the bloc and, to achieve this goal, it defines some rules, such as:
- Ensuring the free circulation of goods, services and products among member countries;
- Guarantee of the TEC (Common External Tariff) in commercial negotiations with States that do not belong to the economic bloc;
- Macroeconomic and sectoral policies in member states;
- Commitment to strengthening integration among all effective members of the organization.
The block also has social and citizenship protection objectives. For this, it seeks to promote the appreciation of the diversity of cultures in its countries, in addition to improvements in areas such as health and education.
Likewise, Mercosur values and implements policies that allow the free movement of people between the countries of the bloc.
Creation of Mercosur
Mercosur was created from the Asuncion Treaty, signed on March 26, 1991 by the governments of Brazil, Argentina, Paraguay and Uruguay.
However, currently, Mercosur is governed by the Ouro Preto Protocol, signed on December 17, 1994 and in force since December 1995.
Mercosur countries
All South American countries are linked to Mercosur, either as effective members or as associates.
As of 2012, the members considered as Associate States of the bloc are: Brazil, Argentina, Uruguay and Paraguay (since March 26, 1991).
THE Venezuela It joined the block on December 7, 2012, but has been suspended since 2016 for not complying with the Protocol of Adhesion and for breaching the Block's Democratic Clause.
Associated States
Countries classified as Associated States are: Chile (since 1996), Peru (since 2003), Colombia, Ecuador (since 2004), Guyana, Suriname (since 2013) and Bolivia (currently in the process of becoming an Associate State).
The main difference between States Parties and Associated States it is in the decision-making power that the former have in relation to the important issues of the bloc. Members, for example, do not have the right to vote for approval of new member states joining the organization.
The Associated States also do not benefit from the Common External Tariff (TEC), which consists of a standard tax on products that are exported to countries outside the bloc. TEC helps to avoid international commercial competition and privileges the effective members of this agreement.
Observer States
There are also countries called observers, which have the right to participate in the bloc's meetings, just for follow-up, but without any voting or decision-making power.
Currently the observer countries are Mexico (since 2016) and New Zealand (since 2010).
See also the meaning of other economic sets, such as the NAPHTHA it's the brics.
Mercosur advances
In order to achieve more economic advances, protect human rights and have more balance in the politics of the countries of the bloc, in 2017, three important protocols were signed.
O Protocol of Cooperation and Investment Facilitation it gives more security so that new investors have guarantees to invest in the states that belong to the bloc.
Already the signature of Mercosur Public Procurement Protocol it reduced government costs and expanded the range of new businesses that can be closed.
Regarding the protection of consumer rights in Mercosur countries, the Mercosur Agreement on Applicable Law in the Matter of International Consumer Contracts.
know more about economic blocks.
Mercosur Basic Data
Data source: http://www.mercosul.gov.br/
