Mercosur

MERCOSUR, the customs union that includes Argentina, Brazil, Paraguay and Uruguay, entered into force January 1, 1995. Chile and Bolivia joined the pact subsequently as associate members. Cooperation between Brazil and Argentina (historic competitors) is the key to MERCOSUR's integration process, which includes political and military elements in addition to a customs union. Brazil accounts for more than 70% of Mercosur GDP and Argentina about 27%.  More than 90% of intra-Mercosur trade is duty-free, while the group's common external tariff (CET) applies to more than 85% of imported goods. Remaining goods will be phased into the CET by 2006. Currently the common external tariff which varies from 0% to 20% has average levels of roughly 14%, making Mercosur among the freest economic spaces in the world.

Mercosur today is an economic reality of continental dimensions. Comprising an area of slightly less than 12 million square kilometers, or more than four times the size of Europe, Mercosur represents a potential market of 200 million people and a joint GDP of more than US$ 1 trillion, which places it among the four largest economies of the world after NAFTA, the European Union and Japan.

Mercosur is currently one of the major poles of attraction for investment in the world. There are many reasons for this success: Mercosur is the fourth economy and has the largest reserve of natural resources in the world. Its energy reserves, especially mineral and hydroelectric, are among the most important in the world. Its advanced communications network goes through a continuous renovation process. More than two million kilometers of roads connect our major cities and our people travel through more than six thousand airports. The future perspectives in the communications sector are extremely promising: Now that the major companies in the sector have become privatized, a much greater market can be exploited.

Today Mercosur has one of the most important industrial sectors among the developing countries, larger in fact than many of the so-called "developed" countries. The economic performance of the subregion has shown that Mercosur today is one of the most dynamic economies in the world. Our average rate of growth for the 1991/98 period, roughly 3.5%, was considerably higher than the world average. Another factor added to these figures is stability. In the Mercosur of today, inflation is merely an unpleasant memory.

Mercosur today is a global trader and, as such, is fully interested in maintaining broad and varied relations with the outside world. Its four member countries are constantly concerned about maintaining their position in global trade, without favoring one or another country, in order to ensure a broader scope to its role on the international scene. Its imports and exports are distributed in a balanced way among the diverse economies of the world. In this sense it is natural for Mercosur to practice and respect the principles of open regionalism since it was originally conceived precisely to increase the participation and improve the position of its four economies in the world market.

China Mercosur
China Brazil
China Argentina
China Uruguay
China Chile