# What is the Mercosur? **URL:** \ **Category:** Factual Questions\ **Created:** [April 5, 2005, 6:19pm UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880 "2005-04-05T18:19:15Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\ **Post date:** [April 5, 2005, 6:19pm UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880/1 "2005-04-05T18:19:15Z")
I just saw a speech from Carlos Ghosn and he mentioned that we should be seeking suppliers from the Mercosur because they are a low cost region. My first reaction was W(here)TF is the Mercosur? I googled and got a lot of hits for spanish based websites and saw that the Mercosur is a affiliation of South American countries (sort of a free trade zone). My question concerns the Mercoturs intentions, does it intend to become another EU in the long run? Are there other areas in the world that have or plan on becoming cooperative trade zones? ---
**Author:** ![dqa](https://avatars.discourse-cdn.com/v4/letter/d/d6d6ee/32.png) [@dqa](https://boards.straightdope.com/u/dqa)\ **Post date:** [April 5, 2005, 7:35pm UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880/2 "2005-04-05T19:35:42Z")
Mercosur was established to create the same sort of free trade zone, and the advantages associated with it, that NAFTA created in North America. From what I’ve heard over the years, it was also established in part to give Brazil (mostly) some clout at global trade talks, prevent South America from being dominated and picked off one by one by the US and NAFTA, and because Brazil, Argentina, etc couldn’t get into NAFTA. Chile, which would have been a natural fit into Mercosur, decided to take it’s chances on getting into NAFTA - with promising results. I don’t know exactly the status, but I think Chile has a free-trade agreement with the NAFTA countries, although it is not a full member. Mercosur has also been hindered by weak economies in the region, particularly Argentina. As for elsewhere, the African Union is looking into these issues, I seem to recall a West African group already that may share a common currency, there may be free trade in southern Africa, although that region is so dominated by South Africa that it may be simply a bunch of bilateral agreements. The Caribbean nations have tried to band together both economically and politically, with varying degrees of success. In Asia, ASEAN is the major player, but I don’t think their trade is nearly as free as we see in the EU, NAFTA, or even Mercosur. There are also numerous bilateral agreements on free trade - I think Japan and Australia have one, for instance. More knowledgable people will be along shortly. ---
**Author:** ![Polycarp](https://avatars.discourse-cdn.com/v4/letter/p/82dd89/32.png) [@Polycarp](https://boards.straightdope.com/u/Polycarp)\ **Post date:** [April 5, 2005, 7:35pm UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880/3 "2005-04-05T19:35:52Z")
First hit I got was Google’s own cache of definitions in English for Mercosur: > [@](#): > > Definitions of MERCOSUR on the Web: > > [ul][li]A common market among Argentina, Brazil, Paraguay and Uruguay, known as the “Common Market of the South” (“Mercado Comun del Sur”). It was created by the Treaty of Asunción on March 26, 1991, and added Chile and Bolivia as associate members in 1996 and 1997.[/li]www-personal.umich.edu/~alandear/glossary/m.html > > [li]A regional trade block in South America, composed of Brazil, Argentina, Uruguay and Paraguay. Came into force in 1995.[/li][www.web.net/rain/glossary.htm](http://www.web.net/rain/glossary.htm) > > [li]Southern Common Market[/li][www.asmara.com/terminology.htm](http://www.asmara.com/terminology.htm) > > [li]Regional common southern market integrated by Argentina, Brazil, Paraguay and Uruguay.[/li][www.fao.org/DOCREP/005/Y4358E/y4358e0a.htm](http://www.fao.org/DOCREP/005/Y4358E/y4358e0a.htm) > > [li]This trade pact (called Mercosul in Portuguese) includes Paraguay, Argentina, Uruguay and Brazil. It is hoped to be running by 1994.[/li]info.wlu.ca/~wwwsbe/faculty/rwigle/ec639/ref/terms.htm > > [li]Pact between Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area.[/li][enbv.narod.ru/text/Econom/ib/str/261.html](http://enbv.narod.ru/text/Econom/ib/str/261.html) > > [li]This regional trade alliance formed in 1991, created a customs union in 1995. Members are: Argentina, Brazil, Paraguay, Uruguay, and affiliated members Chile and Bolivia. It has the objective of establishing the free circulation of goods, services, and factors of production, achieving unified customs, coordinating fiscal and exchange policies, and setting a common external tariff and trade policy.[/li][www.invertir.com/argentina/c08-90.html](http://www.invertir.com/argentina/c08-90.html) > > [li]Part 1, Article II: Scope of Application Trade in services is defined as supply of a service : a) from the territory of one Party into the territory of another Party; b) in the territory of one Party to the service consumer of another Party; c) by a service supplier of one Party, through commercial presence in the territory of another Party; d) by presence of persons of one Party in the territory of another Party.[/li][www.sice.oas.org/cp\_serv/english/p1\_s4b.asp](http://www.sice.oas.org/cp_serv/english/p1_s4b.asp) > > [li]Mercosur is an economic common market that began operating in the southern cone of South America in 1995. [/li][en.wikipedia.org/wiki/Mercosur[/ul]](http://en.wikipedia.org/wiki/Mercosur%5B/ul%5D) ---
**Author:** ![rabbit](https://avatars.discourse-cdn.com/v4/letter/r/919ad9/32.png) [@rabbit](https://boards.straightdope.com/u/rabbit)\ **Post date:** [April 5, 2005, 8:17pm UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880/4 "2005-04-05T20:17:24Z")
Mercado (Market in spanish) Sur (south in spanish). Just wanted to add thats where it comes from 😃 . ---
**Author:** ![Crandolph](https://avatars.discourse-cdn.com/v4/letter/c/7cd45c/32.png) [@Crandolph](https://boards.straightdope.com/u/Crandolph)\ **Post date:** [April 6, 2005, 2:08am UTC](https://boards.straightdope.com/t/what-is-the-mercosur/297880/5 "2005-04-06T02:08:13Z")
> [@dqa](#): > > As for elsewhere, the African Union is looking into these issues, I seem to recall a West African group already that may share a common currency, there may be free trade in southern Africa, although that region is so dominated by South Africa that it may be simply a bunch of bilateral agreements. You’re probably thinking of the [CFA franc](http://www.bceao.int/internet/bcweb.nsf/pages/umuse1?OpenDocument&Click=), the result of French colonialism in West Africa. They’ve been using that currency since 1945 (it was just revalued). Southern Africa isn’t nearly as ‘dominated’ now by the RSA as it was in the apartheid era, when those bordering countries which weren’t outright property of the RSA were occupied by RSA troops.