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Trade Bloc
A 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.
SCCM:
Mercosur
Tariff: a tax or fee for a product
Cordel King
Jeffrey Holt
Embargoes: a prohibition or restriction
The SCCM trade bloc is made up of Argentina, Brazil, Paraguay(currently suspended), Uruguay, and Venezuela.
History
Currency?
Originated in 1985 with the PICE (Argentina Brazil integration and Economics Cooperation Program).
Formed officially in 1994 with the treaty of Ouro Preto.
Transition is taking place into UNASAR (more on that later)
the SCCM does not have its own standing currency, however it does use multiple currencies from the countries it's over, and transfers currency to currency.
Strength: Power
The SCCM has the power to suspend one country from trading with other countries under the same agreement.
The most common currencies used within the SCCM are:
- Peso
- Real
- Guarani
- Bolivan
ANSWERS
Why do trading BLoc's exist?
4
Mercosur
Paraguay
For one simple reason; trade between countries can create strong bonds and strengthens many ties.
UNASAR
1994
2
4
South AMerica
Tariffs: Embargoes: and Quotas
Questions
Miscellaneous
Whats is the more common name for the Southern Common Market?
Mercosur is a custom union that is part of an integration process with another custom trade union.
Adean Community of Nations is the Union of Southern American Nations (UNASAR).
There is one common external tariff throughout the nations
What country was recently suspended?
How many currencies are invoked in the SCCM?
Along with many other individual taxes on trading merchandise
What year was Mercosur officialy formed?
How many uniform tariffs are there throughout all particpants?
Many countries are involved in Mercosur;
- Brazil
- Argentina
- Uruguay
- Paraguay
- Peru
- Venezuela
- Suriname
- Ecuodor
- Columbia
There is also a common Domestic tariff in each state.
What larger group is Mercosur part of?
What area is UNASAR over?
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How many different types of pesos are there from countries in UNASAR?
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