Is Mercosur a Free Trade Agreement

Mercosur, also known as the Southern Common Market, is a regional trade agreement between several countries in South America. But is it truly a free trade agreement?

The short answer is yes, but with some caveats. Mercosur aims to create a common market between its member countries, which include Argentina, Brazil, Paraguay, and Uruguay. It seeks to promote free trade by eliminating tariffs and other trade barriers among its members.

However, while there are no tariffs on goods traded within the bloc, there are still some restrictions in place. For example, certain products are subjected to quotas, which limit the amount that can be imported or exported. Additionally, there are non-tariff barriers, such as technical regulations and customs procedures, that can make trade more difficult for businesses.

Furthermore, Mercosur is not a completely open free trade agreement. The bloc has signed trade agreements with other countries, such as the European Union and Israel, which have further opened up trade between those countries and Mercosur. However, there are still restrictions in place for other countries seeking to trade with the Mercosur bloc.

In conclusion, while Mercosur is technically a free trade agreement, it is not completely open and there are still some barriers to trade between its member countries and others. Nevertheless, it is a significant trade agreement in South America and has helped to promote greater economic integration within the region.