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What is Mercosur?

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Verena Bossaller

on 1 July 2015

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Transcript of What is Mercosur?

GFS made by Verena Bossaller.

What is Mercosur?
expand domestic markets fasten process of economic development
the attempt to establish a common market
treaty of Asunción 1991
associated: Peru, Bolivia, Chile, Ecuador, Columbia
integration of memberstates
promote scientific & technological development
Form an union
Solution: establishing a common market
should involve:
What about
too much!!
This is going
...Let´s say...
Definition of common market:
Group formed by countries within a geographical area to promote
duty free trade
free movement of labor and capital
among its members. European community (as a legal entity within the framework of European Union) is the best known example. Common markets
impose common external tariff
(CET) on imports from non-member countries.

Article 1
Mercosur has been riven by disputes among its members. When Brazil's car industry became increasingly competitive, aided by the devaluation of its currency in 1999, Argentina responded by imposing tariffs on Brazilian steel imports. The spat was resolved in December 2000 when the two countries signed a bilateral agreement to end the crisis.

Article 2:
The bloc's smaller members, Paraguay and Uruguay, complain of restricted access to markets in Argentina and Brazil and have sought to set up bilateral trade deals outside Mercosur. The organisation's rules forbid this.

Article 3:
Meanwhile, Mercosur's blockage of the FTAA and its general disinterest in trade with the United States has discouraged warm relations between the two. While the United States has not overtly criticized Mercosur, Washington views the bloc as "an obstacle to the expansion of their trade in Latin America," according to Wheeler.

Mercosur today
domestic market with 260 million consumers
GDP : approx. 1.000 billion us dollar
export volume: 200 billion us dollar
import volume: 130 billion us dollar
Full transcript