That is the MERCOSUR

That is the MERCOSUR?

Is an economic and political agreement among Argentina, Brazil, Paraguay, Uruguay, and Venezuela; with Bolivia becoming an accessing member on 7 December 2012 to be ratified by the Member State's legislatures. It was established in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto.

Aims of the MERCOSUR

Its purpose is to promote free trade and the fluid movement of goods, people, and currency. The official languages are Guaraní, Portuguese and Spanish. It has been updated, amended, and changed many times since. It is now a full customs union. Mercosur and the Andean Community of Nations are customs unions that are components of a continuing process of South American integration connected to the Union of South American Nations.

Member states of MERCOSUR

Mercosur is composed of 5 sovereign member states: Argentina, Brazil, Paraguay, Uruguay and Venezuela. Bolivia is an accessing member since December 7, 2012. Following the impeachment of President Fernando Lugo by the Paraguayan Senate, this country was suspended from Mercosur, and the admittance of Venezuela as a full member became effective July 31, 2012. In four years, Venezuela will have to fully adapt to the trade bloc regulations.

Geography of MERCOSUR

The territory of Mercosur consists of the combined territories of five of the twelve countries of South America and their population. Including the overseas territories of member states, Mercosur experiences most types of climate from Arctic to tropical, rendering meteorological averages for Mercosur as a whole meaningless. The majority of the population lives in areas with a subtropical climate (Uruguay, Southern Paraguay, Northeastern Argentina and Southern and Southeastern Brazil), or a tropical climate (Venezuela and Northeastern Brazil).

Free trade zones

The member nations can have commercial free-trade zones, industrial free-trade zones, export processing zones, and special customs areas, all of which target providing merchandise marketed or produced in these areas with treatment different from that afforded in their respective customs territories.

Tariffs

The member states can assess merchandise from these areas with the common external tariff used for Mercosur merchandise, or, in the case of certain special products, the domestic tariff prevailing in each individual state.

Salvaguards

Products produced or marketed in the free-trade zones of each member nation will be eligible for the safeguard system whenever this entails an increase not provided for in imports, but capable of causing damages or threatened damages to the importer country.

Incentives

In the event of the producing nation's granting special incenti ves for production from the free-trade zones that are not compatible with

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