What is MERCOSUR?

MERCOSUR, short for the “Southern Common Market” (translated from Spanish), is a South American trade bloc established in 1991 by Argentina, Brazil, Paraguay, and Uruguay with the goal of creating a free trade area and eventually a common market  

The objectives of the trade alliance are:

• Reduced Trade Barriers:  MERCOSUR aims to eliminate tariffs and other trade barriers between member countries, making it easier for goods and services to flow freely within the bloc.  
• Common External Tariff:  Member countries apply a common external tariff (CET) on imports from outside the bloc, promoting regional production.  
• Economic and Political Integration:  While primarily focused on trade, Mercosur also seeks to foster political cooperation and integration among its members.  
  
  

Current full members of the alliance are Argentina, Brazil, Paraguay, Uruguay, Bolivia  

Associated Countries: Chile, Colombia, Ecuador, Guyana, Peru, Suriname, Venezuela (suspended)

MERCOSUR has faced challenges in achieving its full potential since its inception, including internal disagreements, protectionist policies, and economic disparities among members

In more recent news has thrust the trade bloc back onto the world stage as the EU recently reached a trade agreement with MERCOSUR member countries at the end of 2024

One of the benefits of Paraguay’s membership within MERCOSUR is the ability to travel visa-free to other member countries (Paraguayan Citizens and Permanent Residents)