Mercosur

Members: Argentina, Brazil, Paraguay and Uruguay. The bloc can be characterized as a customs union in the process of consolidation, with common market features, with the elimination of obstacles to the circulation of factors of production, as well as the adoption of a common tariff policy regarding third countries, through a Common External Tariff (CET).

The 1994 Treaty of Ouro Preto gave the body a wider international status. The bloc constitutes a privileged space for investments, through purchase, share control, and association of companies from member States.

When Brazil's car industry became increasingly competitive, aided by the devaluation of its currency in 1999, Argentina responded by imposing tariffs on Brazilian steel imports. the dispute is solved in 2000.

Talks to secure a trade accord with the EU began in 1999 but were suspended in 2004, with subsidies for European farmers and tariffs on industrial goods being among the stumbling blocks.

Bolivia, Chile, Colombia, Ecuador, and Peru are associate members; they can join free-trade agreements but remain outside the bloc's customs union.

The bloc's founding members - Brazil, Argentina, Paraguay and Uruguay - suspended Venezuela for failing to meet its basic standards.

The current negotiations cover a broad range of issues including:
- tariffs
- rules of origin
- technical barriers to trade
- sanitary and phytosanitary measures
- services
- government procurement
- intellectual property
- sustainable development
- small- and medium-sized enterprises
This free trade agreement will be part of the overall negotiation for a bi-regional Association Agreement which also comprises a political and a cooperation pillar.