Number: RL33620
Title: Mercosur: Evolution and Implications for U.S. Trade Policy
Authors: J.F. Hornbeck, Foreign Affairs, Defense, and Trade Division 
Abstract: On March 26, 1991, Brazil, Argentina, Uruguay, and Paraguay signed the Treaty of Asunción, establishing the Common Market of the South (Mercado Común del Sur - Mercosur) with the intention of strengthening sub-regional development and cooperation through economic integration. Since then, Mercosur has struggled to achieve deep economic integration, but has maintained a cooperative economic and political framework, which has also become an influential voice in determining the fate of the hemisphere's regional integration initiatives. In particular, the U.S. vision for hemispheric integration, the Free Trade Area of the Americas (FTAA), has stalled largely because of opposition from within Mercosur. Venezuela's July 2006 signing of an accession agreement only reinforces Mercosur as the undisputed economic counterweight to the United States in the region and raises further doubts over the prospects for a hemispheric-wide trade agreement. This report examines the evolution of Mercosur as it relates to U.S. trade policy in Latin America. It will be updated periodically.
Pages: 21
Date: March 26, 2008