MERCOSUR: Characteristics and Members

Importance of the Topic

By understanding and analyzing the Southern Common Market (MERCOSUR), one of the main economic and political organizations in South America, we are able to have a broad overview of regional integration and how nations are connecting in terms of economy, politics, and culture. This is crucial for understanding global interdependence, sustainable development, and international relations, fundamental topics constantly discussed in Geography.

Relevance of the Topic

The relevance of MERCOSUR as a regional bloc cannot be underestimated. It has proven to be an instrument of great importance for the economic and social development of its member countries. Furthermore, it illustrates well the developing nations' quest for a greater voice in the global economy and the need for cooperation among these nations to achieve this goal.

Contextualization

In the broad spectrum of the Geography curriculum, the study of MERCOSUR fits into the section of Political and Economic Geography, providing a concrete example of regional economic cooperation and integration. It joins other similar organizations, such as the European Union, the Association of Southeast Asian Nations (ASEAN), and NAFTA (now evolved into USMCA), as case studies that help illustrate the concepts of regional blocs and globalization, essential issues for a complete understanding of the geography of the modern world.

Theoretical Development

Components

• Common Market: The main objective of MERCOSUR is to be a common market, which means that member countries seek the free circulation of goods, services, and factors of production, as well as a common trade policy regarding non-members. This implies zero or reduced tariffs among members, as well as a common external tariff for imports from outside the bloc.

• Free Residence and Work: In addition to free trade, MERCOSUR allows free residence and work for citizens of member countries. This means that citizens of MERCOSUR countries have the right to live and work in any other member country.

• Political Cooperation: MERCOSUR also seeks political integration among its members. This includes adopting common positions in international organizations, seeking peaceful solutions to disputes among members, and creating common institutions for decision-making on mutual interest issues.

Key Terms

• Regional Integration: It is the process by which countries agree to reduce or eliminate barriers to trade and investment among themselves. This can be done through the creation of a common market, a customs union, or even a monetary union.

• Capital Goods: These are goods used in the production of other goods, which are durable, meaning they have a long lifespan. Examples include industrial machinery, transportation equipment, and tools.

• Mercosurian: A humorous term for someone who is a native or citizen of one of the MERCOSUR member countries.

• Geopolitics: It is the study of how geography and political power interact. It focuses on how the geographical characteristics of a country or region help shape its political power and strategy, and how these factors can influence international relations.

Examples and Cases

• Common External Tariff (CET): The CET is one of MERCOSUR's main tools to establish a common market. It is a tariff that all MERCOSUR members agree to charge on imports from countries that are not members of the bloc.

• Free Trade Agreement with the European Union: In 2019, after two decades of negotiations, MERCOSUR and the European Union reached a free trade agreement. This is a significant milestone in MERCOSUR's history and demonstrates its commitment to openness and trade liberalization.

• Treaty of Asunción: This is the treaty that established MERCOSUR, signed in 1991 in the Paraguayan city of Asunción. It is a key document to understand the objectives and structure of the bloc.

Detailed Summary

Relevant Points:

• Definition and Objectives: MERCOSUR is an economic and political regional integration bloc founded in 1991. Its main objectives are: the creation of a common market, the free circulation of goods, services, and factors of production among member countries, the adoption of a common trade policy regarding non-members, and the coordination of macroeconomic and sectoral policies among members.

• Member Countries: MERCOSUR is composed of Argentina, Brazil, Paraguay, and Uruguay, countries that signed the Treaty of Asunción, the founding act of the bloc. Venezuela, which was also a member, was suspended in 2016. In 2020, Bolivia became a full member.

• Organizational Structure: The structure of MERCOSUR consists of four main bodies: the Common Market Council, the Summit of Heads of State and Government, the Common Market Group, and the MERCOSUR Secretariat.

• Benefits and Achievements: The regional integration promoted by MERCOSUR has brought various benefits to member countries, such as increased intra-bloc trade, attraction of foreign investments, improvement of transportation and communication infrastructure, and facilitation of tourism and cultural exchange.

Conclusions:

• Economic Integration: MERCOSUR is a clear demonstration of how economic and political integration among nations can be beneficial. By removing barriers and promoting cooperation, member countries have managed to improve their economic and social indicators.

• Challenges and Perspectives: MERCOSUR still faces significant challenges, such as the need to deepen integration, improve infrastructure, facilitate people's mobility, and strengthen the bloc's institutions. Furthermore, Bolivia's entry as a full member may open new cooperation perspectives.

• Global Relevance: MERCOSUR is a remarkable example of how developing nations can unite and seek greater integration into the global economy. Its experience can provide valuable lessons for other regional blocs and integration initiatives.

Exercises:

1. What is a common market? Provide three characteristics of a common market and explain why it is considered an important step in economic integration.

2. Which are the member countries of MERCOSUR and how did they become members? List the countries and explain the process of Bolivia's accession.

3. Describe the organizational structure of MERCOSUR and the functions of each of its four main bodies. Enhance understanding by drawing a parallel with a similar organization, such as the European Union.