Mercosur

Mercosur, short for Mercado Común del Sur or Southern Common Market, is a regional trade bloc in South America established by the Treaty of Asunción in 1991. Its aims include promoting free trade, the fluid movement of goods, services, capital, and people, and coordinating economic policy among its members. The four full members are Argentina, Brazil, Paraguay, and Uruguay. Venezuela joined as a full member in 2012 but was suspended in 2016, amid political concerns. In addition to full members, Mercosur has associate members and several partner and observer states, reflecting ongoing efforts to deepen regional integration.

Mercosur operates through institutions such as the Mercosur Council, the primary decision-making body, and the Common Market Group, which prepares policy proposals. It also maintains the Parliament of Mercosur for parliamentary oversight. The bloc uses a common external tariff and coordinates trade policy, regulatory standards, and dispute settlement procedures across member states.

Economically, Mercosur is a major regional bloc with significant agricultural and industrial trade. It has pursued broader liberalization, including a bilateral agreement with the European Union that was agreed in principle in 2019, though ratification remains incomplete. The bloc also engages in sectoral agreements, energy cooperation, and infrastructure projects.

Mercosur faces challenges such as political divergence among members, tariff policy tensions, and the balance between regional integration and national policy autonomy. Its future trajectory depends on maintaining cohesion while expanding external partnerships.