MERCOSUR
Context: MERCOSUR is a Latin American trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay, with which India signed a Preferential Trade Agreement in 2004 to boost economic ties.
Important Pointers:
Definition: A South American trade bloc promoting the free movement of goods, services, capital, and people.
Establishment: Formed in 1991 through the Treaty of Asunción by Argentina, Brazil, Paraguay, and Uruguay.
Objective: Aim at economic integration and political coordination among member states.
Full Members: Argentina, Brazil, Paraguay, Uruguay, and Bolivia (joined 2024); Venezuela suspended since 2016.
Associate Members: Includes Chile, Colombia, Ecuador, Guyana, Peru, and Suriname with limited rights.
Headquarters: Located in Montevideo, Uruguay.
Governance: The Common Market Council is the top body; decisions by consensus; the presidency rotates every 6 months.
Economic Significance: Fourth-largest integrated market globally after EU, NAFTA/USMCA, and ASEAN.
India Relations: India signed a Preferential Trade Agreement (PTA) with the bloc in 2004.
Recent Engagement: PM Modi and Paraguay’s President Santiago Pena discussed expanding trade via MERCOSUR, highlighting sectors like digital tech, minerals, defence, and energy.