International Organizations - MERCOSUR

An international intergovernmental organization is an entity formed by the governments of various foreign countries to coordinate government policy and/or action on targeted issues. The "Mercado Comun del Sur" (MERCOSUR), which in English means the Southern Common Market, is one type of an international organization. It is free trade organization based in South America, and it is one of the largest economic blocs in the world.

Formation/Members

In the 1970's and 1980's, the countries that eventually formed MERCOSUR were concluding bilateral agreements among themselves to further their economic relations and cooperation. Argentina and Brazil particularly worked toward progressive integration of their economies. MERCOSUR was first contemplated in 1991 when representatives from Argentina, Brazil, Paraguay, and Uruguay met to sign the Treaty of Asuncion on the Institutional Structure of MERCOSUR. In 1994, the countries of MERCOSUR signed the Protocol of Ouro Preto, which added to the Treaty of Asuncion and set forth guidelines for the development of the common market known as MERCOSUR. In 1996, agreements were signed between MERCOSUR and Bolivia and Chile, although the latter two countries did not become full members of MERCOSUR by virtue of these agreements, but became associated members.

Purpose

MERCOSUR has a goal of creating a common market among MERCOSUR countries by 2006. The member countries contemplate that the common market will have a larger international economic presence as a group of nations than the impact any one individual country would have on its own. The member countries work toward enhancing the global competitiveness of their economies. MERCOSUR countries work toward development of their economies, coordination on economic issues, more efficient use of resources, complementing each other's economic sectors, and preserving the environment in the process.

Structure

MERCOSUR is headquartered in Montevideo, Uruguay, where the organization's Secretariat, or administrative body is located.

The ultimate decision-making body for MERCOSUR is the Common Market Council, which meets at least annually. The Council is formed by the foreign ministers and ministers of economic affairs of the member countries. Decisions are made on a consensus basis. A Common Market Group drafts proposals for the Council to consider and is in charge of executing decisions made by the Council. In addition to the main decision-making and executing bodies, there are several other MERCOSUR organs, such as a Trade Commission, a Joint Parliamentary Commission, an Economic and Social Advisory Forum, a Committee of Permanent Representatives, and a Dispute Settlement Court.