Other Regional Blocs and the Future of Regionalism

Mercosur (Mercado Común del Sur, or Southern Common Market) was founded by the Treaty of Asunción, signed on 26 March 1991 by Argentina, Brazil, Paraguay, and Uruguay, with the stated goal of creating a common market among its members through the free movement of goods, services, and factors of production, alongside a common external tariff adopted in 1994-95, technically making it a customs union rather than a full common market in practice. Venezuela was admitted as a full member in 2012 but was suspended in 2017 for failing to adopt Mercosur's democratic and human rights commitments; Bolivia signed an accession protocol in 2015, completing full membership in 2024. Mercosur's institutional structure remains predominantly intergovernmental, lacking supranational bodies comparable to the European Commission or Court of Justice. After more than two decades of negotiations, Mercosur and the European Union reached a political agreement on an association agreement, including a free trade component, in December 2024, though as of the mid-2020s the deal still required ratification by EU member states and institutions, and has faced significant opposition from European farming interests.