Mercosur
Also called: Southern Common Market · Topic: International Trade: Patterns, Ports and the WTO · NCERT: Beyond NCERT
Meaning
Mercosur, the Southern Common Market, is a South American trade bloc. It was set up in 1991 by the Treaty of Asunción. Its founder members are Argentina, Brazil, Paraguay and Uruguay. Bolivia became a full member in 2024, and Venezuela is suspended. Members remove tariffs among themselves and charge a common tariff on goods from outside, which makes it a customs union. It matters because it is the main trade grouping of South America.
Example
The treaty that created Mercosur was signed in Asunción, the capital of Paraguay. India has had a preferential trade agreement (PTA) with Mercosur since 2009 (verify current). Under a PTA, each side cuts duties on a limited list of goods.
Don't confuse with
- USMCA: the North American bloc of the USA, Mexico and Canada, which replaced NAFTA in 2020. Mercosur is South American.
Related concepts
- Regional trade blocs
- Regional Comprehensive Economic Partnership
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- African Continental Free Trade Area