Added: 05/27/2006 |
Mercosur -- the Largest and Most Influential of Latin American Common MarketsWith over 240 million consumers, the Common Market of the South is recognized as the largest of Latin American common markets, whose mission is to improve efficiency of its four member economies through accelerating economic development and opening new markets. Currently, Mercosur is recognized as the world's third largest regional trading block, which remains significant in assisting Canadians to do business with the entire region. The member countries of this one of the most significant Latin American common markets occupy a larger area that the European continent and make up over 2/3 of South America's population.
The Common Market of the South was launched in 1991 with signing of the Asuncion Treaty, though the spirit of integration started long before, when a number of free trade agreements and associations were launches across Latin America. The basic structure for Mercosur resulted from intense co-operation between Argentina and Brazil in the early 1990s with the aim of creating a mutually beneficial partnership. The agreement was joined by Paraguay and Uruguay, with the four countries developing into an influential international and regional presence.
Mercosur is headquartered in Montevideo and ruled by a Common Market Council. The latter bears responsibility for political decisions concerning integration process. The CMC members are Presidents of the member states, meeting annually and rotating the host country. Mercosur's executive branch is represented by the Common Market Group, composed of the Chairmen of the Central Banks, the Ministers of Foreign Affairs and coordinators from each of member countries.
Among the branches of the Common Market Group are: the Joint Parliamentary Commission representing the four parliaments; the Trade Commission, counseling and enforcing trade policies; the Administrative Secretariat, responsible for advising some of the organization's offices; and the Economic and Social Consultation Forum which has representatives from diverse social and economic groups.
The Mercosur's ultimate goal is to become the most influential of Latin American common markets, with a common trade policy enabling free movement of resources and goods. It aims at creating a full common market by 2007, despite the fact that there is no final date for commitment to the common market status.
The political scope of the Common Market of the South falls currently between the European Union and the North American Free Trade Agreement. To become the leading among Latin American common markets, Mecosur works to harmonize policies within all of its member countries. This process generally requires coordination of legislative, economic, infrastructure, technology and environmental policies.
Another influential organization in Latin America, the Central American Common Market, known as CACM is an economic trade organization established in December 1960 between five nations of Central America and composed of Guatemala, El Salvador, Costa Rica, Nicaragua and Honduras markets.
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