Mercosur

For the trade agreement with the European Union, see EU–Mercosur Association Agreement.

Southern Common Market (in official languages) Aymara Uksankir Qhathu Spanish Mercado Común del Sur Guarani Ñemby Ñemuha Portuguese Mercado Comum do Sul Quechua Lawpi Qhatu
Spanish (left) and Portuguese (right) flag of Mercosur
Motto:  "Our north is the South" Spanish: Nuestro norte es el Sur Portuguese: Nosso norte é o Sul Guarani: Yvy mba'e yvate ojehegui Aymara: Jiwasan alay tuqinx aynach tuqinkiwa Quechua: Nortenchikqa Surmi
Member states   Associated states   Suspended member
Headquarters and capital city	Montevideo
Largest city	São Paulo
Recognized languages	Portuguese Spanish Guarani
Type	Intergovernmental organization and customs union
Membership	5 members Argentina Bolivia Brazil Paraguay Uruguay 1 suspended Venezuela 7 associated Chile Colombia Ecuador Guyana Panama Peru Suriname
Leaders
• President pro tempore	Yamandú Orsi
• President of Parlasur	Arlindo Chinaglia
Legislature	Parlasur
Formation
• Iguaçu Declaration	30 November 1985
• Buenos Aires Act	6 July 1990
• Treaty of Asunción	26 March 1991
• Protocol of Ouro Preto	16 December 1994
Area
• Total	14,869,775 km2 (5,741,252 sq mi)
• Water (%)	1.0
Population
• 2024 estimate	295,007,000
• Density	23/km2 (59.6/sq mi)
GDP (PPP)	2024 estimate
• Total	US$6.681 trillion
• Per capita	US$23,259
GDP (nominal)	2022 estimate
• Total	US$2.638 trillion
• Per capita	US$9,643
HDI (2023)	0.800 very high
Currency	5 currencies  (ARS)  Peso  (BOB)  Boliviano  (BRL)  Real  (PYG)  Guaraní  (UYU)  Peso
Time zone	UTC-2 to UTC-5
Date format	dd/mm/yyyy (CE)
Website www.mercosur.int

The Southern Common Market (commonly known by abbreviations Mercosur in Spanish and Mercosul in Portuguese) is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Bolivia, Brazil, Paraguay, and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Chile, Colombia, Ecuador, Guyana, Panama, Peru, and Suriname are associate countries.

Mercosur's origins are linked to discussions for the constitution of a regional economic market for Latin America, which go back to the treaty that established the Latin American Free Trade Association in 1960, which was succeeded by the Latin American Integration Association in the 1980s. At the time, Argentina and Brazil made progress in the matter, signing the Iguaçu Declaration (1985), which established a bilateral commission, followed by a series of trade agreements the following year. The Integration, Cooperation and Development Treaty, signed between the two countries in 1988, set the goal of establishing a common market that other Latin American countries could join. Paraguay and Uruguay joined the process and the four countries signed the Treaty of Asunción (1991), which established the Southern Common Market, a trade alliance aimed at boosting the regional economy, moving goods, people among themselves, workforce and capital. Initially a free trade zone was established, in which the signatory countries would not tax or restrict each other's imports. As of 1 January 1995, this area became a customs union, in which all signatories could charge the same quotas on imports from other countries (common external tariff). The following year, Bolivia and Chile acquired membership and associate status respectively. Other Latin American nations have expressed interest in joining the group.

Mercosur's purpose is to promote free trade within the zone and the fluid movement of goods, people, and currency. Its functions have been updated and amended many times; it currently confines itself to a customs union, in which there is free intra-zone trade and a common trade policy between member countries. Beyond trade, Mercosur prioritizes deeper regional integration by enabling the free movement of people across borders, supported through its December 2014 agreement with the International Organization for Migration. In 2023, the Mercosur generated a nominal annual gross domestic product (GDP) (PPP) of around 5.7 trillion US dollars, placing the bloc as the 5th largest economy in the world. The bloc places very high on the human development index.