1. By-
Kevin Gala (119)
Lakshmi Apurva. K (122)
Shruti Suman (150)

2. Introduction
• Mercosur, the "Common Market of the South," is the
largest trading bloc in South America
• Its purpose is to promote free trade and the fluid
movement of goods, people, and currency

3. (Awaited)
(Awaited)

4. Objective
• The free transit of produced goods, services and
factors among the member states Among other
things, this includes the elimination of customs rights
and lifting of nontariff restrictions on the transit of
goods or any other measures with similar effects
• Fixing of a common external tariff (CET)
• Move member countries’ economies away from
import-substitution models
• Develop institutional groups

5. History
• 1991: Treaty of Asunción goes into force in
1991, effectively mandating the creation of a common
southern market (MERCOSUR) by December 31, 1994.
Original signatories are Brazil, Argentina, Paraguay, and
Uruguay
• 1994: Creation of Mercosur
• 1995: Creation of customs union. MERCOSUR and the
European Union sign an agreement of trade association
and cooperation in various areas
• 1999: Free trade agreement with two trading block EU
and NAFTA
• 2004: Preferential trade agreement with India

6. Facts
• Population : 0.3 billion(2010) , 43% of Latin America’s
population
• Languages : Portuguese, Guaraní and Spanish
• Combined GNI : $1.1 trillion(2010) ,encompasses
roughly 50% of Latin America’s Gross Domestic
Product
• Land : 7,941,856 sq. miles, 59% of its total landmass
• Climate : most types of climate from Arctic to tropical
• 4th largest trading bloc in the world after EU, NAFTA,
ASEAN (2010)

7. Levels of regional economic
integration
• Free Trade Areas
• Customs Union
• Common Markets
• Economic Union
MERCUSOR’s current position- Customs Union

8. Reasons for difficulty in existence on
Integration
• Economic Instability
2002- Argentina’s economic issues, peru value
reduction, affecting Brazil and Uruguay, price
of commodities in Argentina fall.
• Political Instability
President of Brazil trying to get global
recognition to become the leader of
developing countries created resentment to
Argentina.

9. Associates and Observers
• Colombia
• Bolivia
• Chile
• Ecuador
• Peru
• Venezuela
• Mexico ( Observer)
Reason- Mexico is a member of NAFTA.

10. Administrative/Institutional
Structure of MERCOSUR
• Common Market Council (CMC):The Council is the highest-
level agency of MERCOSUR with authority to conduct its
policy, and responsibility for compliance with the objects and
time frames set forth in the Asuncion
• Common Market Group ( CMG):basic duties are to cause
compliance with the Asuncion Treaty and to take resolutions
required for implementation of the decisions made by the
Council. Furthermore, it can initiate practical measures for
trade opening, coordination of macroeconomic policies, and
negotiation of agreements with non-member states and
international agencies, participating when need be in
resolution of controversies under MERCOSUR

11. Administrative/Institutional
Structure of MERCOSUR
• Commercial Commission of MERCOSUR (CCM):assists
the Common Market Group in the enforcement of
trade policies
• Joint Parliamentary Commission (CPS):The Committee
will have both an advisory and decision-making
nature, with powers to submit proposals as well
• Social-Economic Consultative Forum (FCES):brings
together various associations and interest groups from
member countries

14. India and Mercosur
• A Framework Agreement had been signed between
India and MERCOSUR on 17th June 2003
• India – MERCOSUR PTA came into effect from 1st
June, 2009
• Products covered in Indian offer list are meat and
meat products, organic & inorganic chemicals,
• Product covered in the offer list of MERCOSUR are
food preparations, pharmaceuticals, essential oils
• Trade volume should reach 17 billion USD in 2012
and 30 billion USD by 2030

15. Current News
• Mercosur Signs Trade Deal with Palestinian
Authority
This is the first trade deal between the Palestinian
territories and a bloc of nations outside the Arab
world

16. Trade in goods
Trade in Services

17. Thank you