MERCOSUR Grouping

MERCOSUR Latest News

The Prime Minister recently told the visiting Paraguay President that India and Paraguay can work together to further expand the Preferential Trade Agreement with the trading bloc MERCOSUR.

About MERCOSUR

• The Southern Common Market (MERCOSUR for its Spanish initials) is a South American regional economic organization.
• It was created in 1991 by signing the Treaty of Asunción.
• Objective: facilitating the free movement of goods, services, capital, and people among the member countries. 
• Members: 
  • It originally comprised Argentina, Brazil, Paraguay, and Uruguay as its members. 
  • Bolivia and Venezuela joined it later. (Venezuela has been suspended since December 1, 2016).
  • Mercosur also counts Chile, Colombia, Ecuador, Guyana, Peru, and Suriname as associate members.
• Headquarters: Montevideo, Uruguay.
• Its official working languages are Spanish and Portuguese.
• Governance: 
  • The bloc’s highest decision-making body, the Common Market Council, provides a high-level forum for coordinating foreign and economic policy. 
  • The group consists of the foreign and economic ministers of each member state, or their equivalent, and decisions are made by consensus. 
  • The group’s presidency rotates every six months among its full members.
• It is the fourth largest integrated market after the European Union (EU), North American Free Trade Agreement (NAFTA), and ASEAN.
• India and MERCOSUR signed a Preferential Trade Agreement (PTA) in 2004. 

MERCOSUR FAQs

Q1: What is Mercosur and its purpose?

Ans: It is a South American regional economic organization facilitating the free movement of goods, services, capital, and people among the member countries.

Q2: How many members are in MERCOSUR?

Ans: The full Mercosur members are Argentina, Bolivia, Brazil, Paraguay, and Uruguay. Venezuela has been suspended since December 1, 2016.

Q3: Where is Mercosur headquarters?

Ans: Montevideo, Uruguay

Source: STATES