Mercosur is how the Common Market of the South is known, which deals with a process of regional integration between countries in South America. It was founded by Argentina, Brazil, Paraguay and Uruguay in 1991. It allows a free trade zone and common tariff agreements to exist between these countries (and those annexed to their integration), provided that the countries have democracy.
Mercosur is considered one of the most important, competitive and dynamic economic areas and industrial platform in the southern hemisphere, being one of the largest food producers worldwide. If the GDP produced by the block, we can say that we are facing the fifth largest economy in the world.
The countries mentioned above formed what is now Mercosur thanks to the Asunción treaty in 1991. However, later countries such as Venezuela and Bolivia and associated states (which are Chile, Colombia, Ecuador, Guyana, Peru and Suriname joined). However, Venezuela is currently excluded from this treaty due to the situation it is experiencing.
Regarding the main objective to be achieved, there is the need to be a tool that strengthens the capacities of the member countries, as well as contribute to the deepening of the regional integration process between them.
Mercosur intends to adjust the legislation of market systems so that the same currency can be shared among the member countries, for example. This would cause the market to open, promoting the free market, eliminating duty, decreasing import and export laws. Mercosur tries to regulate or regulate the different taxes that are given between the countries that make up the bloc.
Many people try to compare this block with that of the Unión Europea, except that here there is no common currency, but rather different currencies are advocated.