Mercosul
The Southern Common Market (MERCOSUL in Portuguese, MERCOSUR in Spanish) is an economic, political and social integration project created by Argentina, Brazil, Paraguay and Uruguay. MERCOSUL already functions as a customs union, though in accordance with the Asunción Treaty of 1991 its ultimate objective is to become a common market.
The four members of MERCOSUL have a total population of around 240 million and a combined GDP of over US$2tn.
| MERCOSUL | |||
|---|---|---|---|
| COUNTRY | POPULATION (million) |
GDP (US$bn) |
GDP per capita (US$) |
| Argentina | 39.88 | 420 | 10,531 |
| Brazil | 192.1 | 1,650 | 8,594 |
| Paraguay | 6.23 | 16 | 2,565 |
| Uruguay | 3.33 | 32 | 9,666 |
| MERCOSUL | 241.41 | 2,080 | 8,619 |
Source: World Bank
Recent trade developments in MERCOSUL
Brazil's total trade (imports plus exports) with the other MERCOSUL member countries has increased substantially over the past few years, rising from US$15.3bn in 2004 to US$36.6bn in 2008.
Brazil's trade with its MERCOSUL partners forms a significant proportion of its total foreign trade. In 2008, exports to MERCOSUL countries accounted for approximately 11% of total exports, while the figure for imports was 8.6%.
Associate members
In addition to the four original members of MERCOSUL there are now five associate members: Bolivia, Chile, Colombia, Ecuador and Peru. These countries are able to participate as invited guests in MERCOSUL meetings but do not have voting rights.
Associate membership reflects the commitment on the part of MERCOSUL to deepening the regional integration process, and its recognition of the importance of developing and intensifying relations with members of the Latin American Integration Association (ALADI).
ALADI Members can apply for associate membership of MERCOSUL on the condition that they sign free-trade agreements with the bloc. Countries wishing to become associate members must also adhere to the Ushuaia Protocol on the Democratic Commitment in MERCOSUL, Bolivia and Chile, and to the Presidential Declaration on the Democratic Commitment of MERCOSUL.
The MERCOSUL Parliament
By facilitating the implementation of normative rules within the framework of MERCOSUL, and contributing to the preservation of institutional order and the protection of human rights in the region, the MERCOSUL Parliament helps reinforce the political-institutional dimension of the integration process. It is anticipated that the parliament will follow the integration process closely, producing judgements, recommendations and reports regarding the normative rules, which are being drawn up as well as the international negotiations in which MERCOSUL participates.
The member countries decided that until December 2010 the MERCOSUL Parliament should be made up of eighteen representatives from the parliaments from each member country. Thereafter, in accordance with specific criteria to be decided upon by each member, the members of the MERCOSUL Parliament will be directly elected by secret ballot in a system of universal suffrage.
The MERCOSUL Parliament, launched in Brasília on 14 December 2006, meets for one session per month. Its first working session took place on 7 May 2007 in Montevideo, the seat of the parliament.
Venezuela
A landmark in South American integration was reached on 4 July 2006 with the signing of an agreement for the entry of Venezuela into MERCOSUL. MERCOSUL now has a total population of over 250 million, an area of 12.7 million square kilometres, a combined GDP of over US$ 2.5 trillion (76% of the total GDP of South America) and annual foreign trade of more than US$300bn.