MERCOSUR

Definition

MERCOSUR, or the Southern Common Market, is an economic and political union aimed at promoting free trade and the fluid movement of goods, people, and currency among its member countries in South America. Established in 1991, it strives to enhance political cooperation and regional integration for its members.

Related terms

Free Trade Agreement: A pact between two or more nations to reduce barriers to imports and exports among them.

Regional Integration:

The process by which two or more states collaborate closely in economic, social, or political matters to enhance regional cooperation and security.

Economic Union: A type of trade bloc which is composed of a common market with a customs union. The participant countries have both free trade internally and a common external tariff on non-members