Conheça o MERCOSUL | Blocos Econômicos

Summary

Mercosul, or the Southern Common Market, is an economic bloc of South American countries, including Argentina, Brazil, Paraguay, Uruguay, and Venezuela (currently suspended). Created in 1991, it aims to promote regional integration through free trade and a common external tariff. The bloc prioritizes democracy and human rights, with a focus on economic, political, and social cohesion. Its members are major global producers of commodities like sugar, soy, and beef. Despite its successes, Mercosul faces challenges in harmonizing economies and creating a shared currency, similar to the European Union.

Takeaways

• 😀 Mercosur is an economic bloc in South America, composed of Argentina, Brazil, Paraguay, Uruguay, and Venezuela, although Venezuela is temporarily suspended due to non-compliance with democracy and human rights standards.
• 😀 Bolivia is in the process of joining Mercosur, and its accession is advanced.
• 😀 The idea for Mercosur began in the 1980s when Brazil and Argentina, after leaving military dictatorships, signed a cooperation and development treaty in 1988.
• 😀 The bloc was officially founded on March 26, 1991, with the signing of the Asunción Treaty in Paraguay.
• 😀 Mercosur's main goal is to integrate South American countries by facilitating free movement of goods and services, as well as a common external tariff (TEC).
• 😀 The Mercosur is classified as a customs union, where member countries remove tariffs and taxes on trade between them.
• 😀 The bloc's focus is on integrating the Southern Cone region not only economically but also politically and socially, and ensuring the preservation of democracy within South American countries.
• 😀 Countries must have democratic governments to join Mercosur, with those failing to meet this requirement being temporarily or permanently suspended, as seen with Paraguay in 2012 and Venezuela in 2017.
• 😀 As of 2016, the Mercosur countries collectively have a GDP of over 2 trillion dollars, with economies that are diversified and complementary, especially in agriculture, livestock, and mining.
• 😀 Mercosur is a major global exporter of sugar, soy, and beef, and is seeking to create its own currency, similar to the European Union, though political and economic differences make this difficult.

Q & A

What is Mercosul?

Mercosul is a South American economic bloc, officially known as the Common Market of the South. It consists of five member countries: Argentina, Brazil, Paraguay, Uruguay, and Venezuela. However, Venezuela is temporarily suspended due to not meeting the bloc's democratic and human rights requirements.

Why was Venezuela suspended from Mercosul?

Venezuela was suspended from Mercosul because it was not fulfilling the bloc's key objectives, particularly in terms of democracy and human rights.

Which country is in the process of joining Mercosul?

Bolivia is in the process of joining Mercosul, and its entry is quite advanced.

When was Mercosul officially created, and how did it come into existence?

Mercosul was officially created in 1991 with the signing of the Asunción Treaty in Paraguay. However, the idea for a South American free trade area and circulation started in the 1980s, after Brazil and Argentina, newly out of military dictatorship, signed a cooperation treaty in 1988.

What is the main goal of Mercosul?

The main goal of Mercosul is to promote the integration of South American countries through the free movement of goods and services, as well as the establishment of a common external tariff (TEC). It aims for both economic and political integration, preserving democracy across the continent.

What is the requirement for a country to join Mercosul?

A country must have a democratic government to join Mercosul. Countries that fail to meet this requirement can be temporarily or permanently suspended from the bloc.

What happened to Paraguay and Venezuela in relation to Mercosul?

Paraguay was suspended from Mercosul in 2012, and Venezuela was suspended in 2017 due to failures to meet the democratic and human rights standards set by the bloc.

What is the economic significance of Mercosul?

Mercosul represents a combined GDP of over 2 trillion dollars. The economies of the member countries are diverse and complementary, with major sectors in agriculture, livestock, and mining. The bloc is the largest net exporter of sugar and the largest producer and exporter of soybeans and beef worldwide.

What is Mercosul's plan regarding a common currency?

Mercosul has been exploring the idea of creating its own currency, similar to the European Union's euro. However, discussions have been hindered by the economic differences among member countries and political obstacles.

What are the key industries in Mercosul's economy?

The key industries in Mercosul's economy include agriculture, livestock, and mining, which are the bloc's primary areas of strength in global markets.