Mercosur — Mercado Común del Sur — is a South American customs union and trading bloc, founded in 1991 by the Treaty of Asunción. The bloc accounts for the bulk of South American economic activity and is one of the largest customs unions in the developing world.
At a glance
- Founded: 1991 (Treaty of Asunción signed 26 March 1991)
- Headquarters: Montevideo, Uruguay
- Official languages: Spanish, Portuguese, Guaraní
- Website: www.mercosur.int
Mission
The bloc's founding objectives were free movement of goods, services, capital, and people; a common external tariff; coordination of macroeconomic and sectoral policies; and harmonisation of legislation. In practice, the customs union has been most successful in goods, with services and people moving more slowly.
Structure
The Common Market Council, made up of foreign and economy ministers, is the supreme decision-making body. The Common Market Group oversees implementation. The Mercosur Trade Commission handles tariff matters. The Mercosur Parliament (Parlasur) in Montevideo is a consultative body. The Secretariat provides administrative support.
Member states
Mercosur has 4 member states. Membership current as of 2024-01.
Observer or suspended states
Key facts
- Venezuela became a full member in 2012 but was suspended in 2016 under the Mercosur "democracy clause" over democratic backsliding.
- Bolivia signed an accession protocol in 2015 but has not completed full membership; it currently participates as an associate.
- A free-trade agreement between Mercosur and the European Union was concluded in principle in 2019 but ratification has stalled, primarily over agricultural and environmental concerns.
- The bloc's combined GDP would rank among the world's ten largest economies if combined into a single entity.
- Paraguay, the bloc's smallest economy, was itself suspended in 2012–2013 after the impeachment of President Fernando Lugo.
Historic milestones
| Year | Event |
|---|---|
| 1991 | Treaty of Asunción founds Mercosur |
| 1995 | Customs union enters operational phase |
| 2012 | Venezuela becomes full member |
| 2016 | Venezuela suspended under democracy clause |
| 2019 | EU-Mercosur trade agreement concluded in principle |
