INTERNATIONAL TRADE

STUDENTS: MAYRA HUILCAPI PAOLA ORDEZ

Definition

Mercosur

The Southern Common Market (Mercosur), is a union subregional integrated by Argentina, Brazil, Paraguay and Uruguay, with Bolivia and Venezuela in the process of incorporation. Its partner countries Chile, Colombia, Ecuador and Peru. It was established in 1991 with the signing of the Treaty of Asuncin.

Mercosur has sovereignty over a variety of natural resources, from Ecuador to Antarctica has 200 million people, generating a gross domestic product exceeding one trillion dollars (about 150 billion pesetas), and concentrates more than 54% of GDP in Latin America.

Mercosur

Objective
The primary objective of the Treaty is the integration of States Parties, through the following mechanisms:
Free movement of goods, services and factors of production between countries; The establishment of a common external tariff and the adoption of a common commercial policy; The coordination of macroeconomic and sectoral policies between the States parties; The harmonization of laws to ensure the strengthening of the integration process...

Underlying these advantages, it is important to add that:

All countries have an average of skilled labor; Governments of the four countries adhere to democratic principles and respect for human rights while they are engaged, as far as possible, the harmonization of national legislation; Member countries there is political commitment to tackle the problems of health, education and poverty.

In Ecuador have total free access for goods 5800 Some tariff subheadings 5800 Ecuadorian export products come with periods of relief or removal of tariffs (taxes), immediately or over ten years, with the agreement between the Andean Community (CAN) and Mercosur, which will run from this April 1st.

The reality of Mercosur

Intra-regional trade liberalization in Mercosur is not yet complete (e.g., automotive and sugar sectors are exempted from the zero tariffs within the zone). While there is a common external tariff for many goods, there are numerous exceptions to it, and States parties have the power to draw up a list that shows which assets are exempt from this fee may be changed every six months. In Mercosur, there is no free movement of capital, services or people

The reality of Mercosur

Many of the "purposes" of the integration process has not been achieved in practice. Therefore, despite the name "Southern Common Market, Mercosur is not a common market. It is indeed a free trade area or, if you will, of an imperfect customs union or incomplete.
This is due to several circumstances:

The reality of Mercosur

Ecuador will participate in the summit of the MERCOSUR and associated States said in a statement today the Ministry of Foreign Affairs of the country: For this forum, Ecuador will raise to be included in the agenda more relevant topics such as migration and human rights and the rejection of the Arizona Act, which contains policies that criminalize migrants, reviewed the statement official. Another point that the South American country will be exhibiting at the event is referred to the New International Financial Architecture (NAFI) and the Banco del Sur, in addition, propose the topic of Food Security and Sovereignty.

Use of the preferences granted to Ecuador by the countries of MERCOSUR and the Rest of ALADI

80,00% 70,00% 60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% Argentina Brasil Paraguay Uruguay Chile Mxico

Aprovechamiento de preferencias