MERCOSUR: FROM DELEGATIVE DEMOCRACIES TO 2025

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Mercosur was created in 1991 when Argentina, Brazil, Paraguay, and Uruguay signed the Treaty of Asuncin, an calling for the free movement of goods, services, and factors of production between countries. The four countries agreed to eliminate customs duties, implement a common external tariff (CET) of 35
As envisioned at its founding, Mercosur would gradually achieve the steps to form a common market in the image of the EU. Plans called for the creation of a common external tariff (CET) and the free movement of goods, services, currency, and people between members.
Mercosur was finally established in 1991 by the Treaty of Asuncin, based on the Buenos Aires Act, the Treaty of Asuncin defined rules and conditions for the creation of a free trade zone among its four signatories.
The trade bloc was established under the Treaty of Asuncion in March 1991; it was then expanded under the 1994 Treaty of Ouro Preto, which set up a formal customs union. The main objective of Mercosur is to bring about the free movement of goods, capital, services, and people among its member states.
The Southern Common Market (commonly known by abbreviation Mercosur in Spanish and Mercosul in Portuguese) is a South American trade bloc established by the Treaty of Asuncin in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Bolivia, Brazil, Paraguay and Uruguay.
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Overall, the deal seeks to increase trade and investment by creating a predictable economic environment, reducing tariff and non-tariff barriers, and fostering growth and prosperity, particularly for small and medium-sized enterprises.
For all intents and purposes, the Treaty of Asuncin is the Mercosur Treaty. The treaty established a common, or shared, market between the four South American countries that eliminated tariffs and allowed for free trade. A tariff is a tax imposed on items that are imported from or exported to other countries.

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