Context
India and Brazil have recently decided to expand the existing trade agreement between India and the MERCOSUR bloc to enhance bilateral trade and economic cooperation.
About MERCOSUR
- MERCOSUR, officially known as the Southern Common Market, is a major regional economic bloc in South America formed to promote economic integration among member countries.
- The organisation was established in 1991 through the Treaty of Asunción, and later evolved into a customs union in January 1995 with the objective of facilitating the free movement of goods, services, capital, and people.
- It is regarded as one of the world’s largest integrated trading blocs, after the European Union (EU), NAFTA, and ASEAN.
- The headquarters of MERCOSUR is located in Montevideo, Uruguay, and its official working languages are Spanish and Portuguese.
- The bloc originally consisted of Argentina, Brazil, Paraguay, and Uruguay as founding members. Later, Bolivia and Venezuela joined the grouping, although Venezuela has remained suspended since December 2016.
- In addition to full members, MERCOSUR has several associate members, including Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.
- The highest decision-making body of the organisation is the Common Market Council, which coordinates major foreign and economic policy decisions among member states.
- The Council comprises the foreign and economic ministers of member countries, and all major decisions are taken through consensus.
- The presidency of the bloc rotates among full member countries every six months, ensuring shared leadership within the organisation.
India and MERCOSUR signed a Preferential Trade Agreement (PTA) in 2004 to expand bilateral trade and strengthen economic cooperation between India and the South American bloc.
