Mercosur

Definition

Mercosur, also known as the Southern Common Market, is a South American trade bloc established by Argentina, Brazil, Paraguay and Uruguay in 1991. It aims to promote free trade and fluid movement of goods, people, and currency among member countries.

Analogy

Think of Mercosur like a group of friends who agree to share their toys freely with each other. They can play with any toy from anyone's house without restrictions or needing to ask for permission every time.

Related terms

Trade Bloc: A type of intergovernmental agreement where regional barriers to trade are reduced or eliminated among participating states.

Free Trade Area: An area within which goods and services can be imported and exported without tariffs or restrictions.

Economic Integration: The unification of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade.