MERCOSUR Joaquin Romero Marcelo Moran. Background Mercado Comun del Sur (Common Market of the...

MERCOSURMERCOSUR

Joaquin RomeroJoaquin Romero

Marcelo MoranMarcelo Moran

BackgroundBackground

Mercado Comun del Sur (Common Market of the Mercado Comun del Sur (Common Market of the South)South)

Custom Union: Brazil, Argentina, Paraguay, Uruguay, Custom Union: Brazil, Argentina, Paraguay, Uruguay, and Venezuela (pending)and Venezuela (pending)

Biggest Trade Block in South America and 4Biggest Trade Block in South America and 4thth WorldwideWorldwide

OriginsOrigins

Treaty signed on March Treaty signed on March 2626thth 1991 by Brazil, 1991 by Brazil, Argentina, Paraguay and Argentina, Paraguay and UruguayUruguay

Treaty of Asuncion Treaty of Asuncion Supplemented Brazil and Supplemented Brazil and

Argentinas already Argentinas already established Treaty of established Treaty of Buenos Aires.Buenos Aires.

Venezuela signed Venezuela signed agreement June 17 2006 agreement June 17 2006 (pending)(pending)

ObjectivesObjectives

Free Transit amongst Free Transit amongst membersmembers

Elimination of Elimination of Custom RightsCustom Rights

TEC: Common TEC: Common External TariffsExternal Tariffs

World Economic World Economic PowerPower

MERCOSUR PopulationMERCOSUR Population

Brazil makes up 80% of MERCOSUR Brazil makes up 80% of MERCOSUR population (191,241,714)population (191,241,714)

Argentina (40,482,000) Venezuela Argentina (40,482,000) Venezuela (26,414,826) Paraguay (6,821,306) (26,414,826) Paraguay (6,821,306) Uruguay (3,477,780) Uruguay (3,477,780)

Over 268 billion population combinedOver 268 billion population combined

MERCOSUR and Latin MERCOSUR and Latin AmericaAmerica

50% of Latin 50% of Latin Americas GDP Americas GDP

43 % of Population43 % of Population 59 % of Land Mass59 % of Land Mass 50 % of its Industrial 50 % of its Industrial

ProductionProduction 33% of total Foreign 33% of total Foreign

TradeTrade

ImmigrationImmigration

BrazilBrazil Temporary ResidencyTemporary Residency

Members and AssociatesMembers and Associates Criminal RecordCriminal Record Registration FeesRegistration Fees PassportPassport

Permanent ResidencyPermanent Residency 2 years for eligibility2 years for eligibility

The Venezuela IssueThe Venezuela Issue

BrazilBrazil 2 Year delayed acceptance 2 Year delayed acceptance Itaipu treatyItaipu treaty Brazil will benefit from Venezuela’s resourcesBrazil will benefit from Venezuela’s resources

ParaguayParaguay Acceptance yet to be ratifiedAcceptance yet to be ratified Pressure on Fernando LugoPressure on Fernando Lugo Political stress in ParaguayPolitical stress in Paraguay

Trade in Goods in the Trade in Goods in the WorldWorld

Trade by ProductTrade by Product

Trade in Commercial Trade in Commercial ServicesServices

Foreign Direct Foreign Direct InvestmentInvestment

Mercosur trade with EUMercosur trade with EU

Mercosur Member’s GDPMercosur Member’s GDP

Uruguay’s GDPUruguay’s GDP

Paraguay’s GDPParaguay’s GDP

MERCOSUR EFFECTSMERCOSUR EFFECTS

Stimulated cooperation among his Stimulated cooperation among his membersmembers Renegotiaton of DebtRenegotiaton of Debt Signed a host of bilateral agreementsSigned a host of bilateral agreements Supply of OilSupply of Oil Banco del SURBanco del SUR

ConclusionsConclusions

UNASURUNASUR Union of South American NationsUnion of South American Nations Signed by Mercosur membersSigned by Mercosur members Originally signed in 2004Originally signed in 2004 European UnionEuropean Union

Brazil has benefited the most in MERCOSURBrazil has benefited the most in MERCOSUR MERCOSUR against FTAAMERCOSUR against FTAA