Mercosur, short for Mercado Común del Sur (Southern Common Market), is a South American trade bloc established in 1991 by the Treaty of Asunción. The founding members were Argentina, Brazil, Paraguay, and Uruguay. Later, Venezuela joined in 2012 but was suspended in 2016. In 2024, Bolivia became a full member. Currently, the full members are Argentina, Bolivia, Brazil, Paraguay, and Uruguay. Several other countries, including Chile, Colombia, Ecuador, Guyana, Panama, and Peru, are associate members. Mercosur's headquarters are located in Montevideo, Uruguay.
Mercosur aims to promote free trade, the movement of goods, people, and currency, and the harmonization of economic policies among its members. During the 1990s and up to 2010, internal trade increased significantly, growing from $4 billion to over $41 billion. As of 2025, Mercosur represents a population of 273 million people and is the 6th largest economy outside the EU, with an annual GDP of €2.2 trillion. The EU is Mercosur's second-largest trade partner in goods. In December 2024, the EU and Mercosur reached a political agreement focused on trade, political dialogue, and cooperation. In 2024, trade between the EU and Mercosur was valued at over €111 billion.
