MERCOSUR Joaquin Romero Marcelo Moran

Background  Mercado Comun del Sur (Common Market of the South)  Custom Union: Brazil, Argentina, Paraguay, Uruguay, and Venezuela (pending)  Biggest Trade Block in South America and 4 th Worldwide

Origins  Treaty signed on March 26 th 1991 by Brazil, Argentina, Paraguay and Uruguay  Treaty of Asuncion  Supplemented Brazil and Argentinas already established Treaty of Buenos Aires.  Venezuela signed agreement June (pending)

Objectives  Free Transit amongst members  Elimination of Custom Rights  TEC: Common External Tariffs  World Economic Power

MERCOSUR Population  Brazil makes up 80% of MERCOSUR population (191,241,714)  Argentina (40,482,000) Venezuela (26,414,826) Paraguay (6,821,306) Uruguay (3,477,780)  Over 268 billion population combined

MERCOSUR and Latin America  50% of Latin Americas GDP  43 % of Population  59 % of Land Mass  50 % of its Industrial Production  33% of total Foreign Trade

Immigration  Brazil  Temporary Residency  Members and Associates  Criminal Record  Registration Fees  Passport  Permanent Residency  2 years for eligibility

The Venezuela Issue  Brazil  2 Year delayed acceptance  Itaipu treaty  Brazil will benefit from Venezuela’s resources  Paraguay  Acceptance yet to be ratified  Pressure on Fernando Lugo  Political stress in Paraguay

Trade in Goods in the World

Trade by Product

Trade in Commercial Services

Foreign Direct Investment

Mercosur trade with EU

Mercosur Member’s GDP

Uruguay’s GDP

Paraguay’s GDP

MERCOSUR EFFECTS  Stimulated cooperation among his members  Renegotiaton of Debt  Signed a host of bilateral agreements  Supply of Oil  Banco del SUR

Conclusions  UNASUR  Union of South American Nations  Signed by Mercosur members  Originally signed in 2004  European Union  Brazil has benefited the most in MERCOSUR  MERCOSUR against FTAA