A South American trade bloc established in 1991 through the Treaty of Asuncin. It fosters regional integration by promoting free trade and the fluid movement of goods, services, capital, and people among member states. An illustrative scenario includes Argentina exporting agricultural products to Brazil without tariffs, thereby stimulating economic activity within both nations.
The arrangement significantly influences regional economies by encouraging specialization and increasing market access. Its historical context involves a shift toward neoliberal policies in South America during the late 20th century. The bloc aims to bolster member states’ collective bargaining power in global trade negotiations and to promote political stability within the region.
