THE EMERGENCE OF MERCOSUR

 

THE EMERGENCE OF MERCOSUR

 

The Southern Common Market, known as Mercosur, is a regional economic bloc, which was created on March 26, 1991, by political decision of the republics of Brazil, Argentina, Paraguay, and Uruguay, with the signing of the Treaty of Asunción, and institutionally structured in December 1994, with the Treaty of Ouro Preto.

Its main feature is the adoption of the Common External Tariff, which causes this bloc to be called the Customs Union. This tariff is fully adopted by the permanent members of the bloc and is one of the factors that make Mercosur an important bloc for the South American region.

As the main power in South America, Mercosur is very important for Brazil, it has a strategic importance, because it facilitates the commercial relationship with the other member countries.

The entry of Brazil, as a member country, strengthens the regional economy, valuing Brazilian products; also increases the exchange of technologies, which favors imports and exports, especially small and medium-sized enterprises.

Currently countries such as Brazil and Argentina are in conversation circles so that they can adopt a common currency among the countries of Latin America, which is called Sur.

Presidents Lula (Brazil) and Alberto Fernandes (Argentina) meet to discuss details of this new currency.

Some critics in economics say they don't see this new currency with good expectations.

We hope that it can achieve in the best possible way, with a great legacy of trade growth among the countries of the bloc.

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