Introduction

Mercosur, the "Common Market of the South," is the largest trading bloc in

South America

Created in 1991 as Argentina and Brazil sought to improve their diplomatic

and economic relations, the bloc saw a fivefold increase in regional trade in

the 1990s.

Its purpose is to promote free trade and the fluid movement of goods,

people, and currency

History

1991: Treaty of Asunción goes into force in 1991, effectively mandating the

creation of a common southern market (MERCOSUR) by December 31,

1994.

1994: Creation of Mercosur

1995: Creation of customs union. MERCOSUR and the European Union sign

an agreement of trade association and cooperation in various areas

1999: Free trade agreement with two trading block EU and NAFTA

2004: Preferential trade agreement with India

Member…

Objective

The free transit of produced goods, services and factors among the

member states Among other things, this includes 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 (CET)

Move member countries’ economies away from import-substitution

models

Develop institutional groups

functions.

Its purpose is to promote free trade and the fluid movement of goods, people, and currency. The official languages are Guaraní, Portuguese, and Spanish.

Intra-Mercosur merchandise trade grew from $10 billion at the inception of the trade bloc in 1991, to $88 billion in 2010.

With a population of more than 270 million people, and a GDP of the full-member nations in excess of $3 trillion a year

GDP A measure of the economic production of a particular territory in financial capital terms over a specific time period.

trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.

tariff A system of government-imposed duties levied on imported or exported goods; a list of such duties, or the duties themselves.

Facts

Population : 0.3 billion(2010) , 43% of Latin America’s population Languages : Portuguese, Guaraní and Spanish

Land : 7,941,856 sq. miles, 59% of its total landmass 4th largest trading bloc in the world after EU, NAFTA, ASEAN (2010)

Current News

Mercosur Signs Trade Deal with Palestinian Authority

This is the first trade deal between the Palestinian territories and a bloc of nations

outside the Arab world

Thank You….