Mercosur
INTRODUCTION
Mercosur was instituted by the Treaty of Asuncion signed between Argentina, Brazil, Paraguay and Uruguay on 26th march 1991, thus creating a common market in member countries territories. This common market became fully operational in 1st January 1995.Mercusor was established because of uneven growth of that region. Currently Mercosur includes 6 members countries- Argentina, Brazil, Paraguay, Uruguay, Bolivia & Chile.
OBJECTIVES
The treaty for Asuncion makes provision for:
• Free movement of capital, goods, services and people;
• The creation of common external tariff and the establishment of a common external trade policy; and
• The co-ordination of macro-economic policies
In order to achieve these objectives, the Treaty of Asuncion created the following instruments
• A programme of gradual trade liberalization with the purpose of eliminating all trade barriers by 1st January 1995;
• A programme for adjusting internal legislation to enhance equitable competition;
• A system to define the rules of origin;
• A mechanism for resolving disputes and controversies; and
• Transitory safeguard clauses;
ORGANIZATIONAL STRUCTURE AND ARBITRATION WITHIN MERCUSOR
The governing body of Mercusor is the Common Market Council, consisting of the member states’ ministers of foreign relations and finance. The executive body is the Common Market Group comprising of sixteen members who represent the foreign relations offices, the economic ministries and the central banks of the member states. The Common Market Group has a permanent secretariat based in Montevideo, Uruguay.
The treaty also created ten working groups to deal with matters of trade like:
• Liberalization
• Harmonization of internal trade legislation
• Customs
• Technical specifications
• Taxation & Finance
• Maritime & Land Transportation
• Industrial property
Mercosur was instituted by the Treaty of Asuncion signed between Argentina, Brazil, Paraguay and Uruguay on 26th march 1991, thus creating a common market in member countries territories. This common market became fully operational in 1st January 1995.Mercusor was established because of uneven growth of that region. Currently Mercosur includes 6 members countries- Argentina, Brazil, Paraguay, Uruguay, Bolivia & Chile.
OBJECTIVES
The treaty for Asuncion makes provision for:
• Free movement of capital, goods, services and people;
• The creation of common external tariff and the establishment of a common external trade policy; and
• The co-ordination of macro-economic policies
In order to achieve these objectives, the Treaty of Asuncion created the following instruments
• A programme of gradual trade liberalization with the purpose of eliminating all trade barriers by 1st January 1995;
• A programme for adjusting internal legislation to enhance equitable competition;
• A system to define the rules of origin;
• A mechanism for resolving disputes and controversies; and
• Transitory safeguard clauses;
ORGANIZATIONAL STRUCTURE AND ARBITRATION WITHIN MERCUSOR
The governing body of Mercusor is the Common Market Council, consisting of the member states’ ministers of foreign relations and finance. The executive body is the Common Market Group comprising of sixteen members who represent the foreign relations offices, the economic ministries and the central banks of the member states. The Common Market Group has a permanent secretariat based in Montevideo, Uruguay.
The treaty also created ten working groups to deal with matters of trade like:
• Liberalization
• Harmonization of internal trade legislation
• Customs
• Technical specifications
• Taxation & Finance
• Maritime & Land Transportation
• Industrial property
References: • INTERNATIONAL BUSINESS ENVIRONMENT AND MANAGEMENT; V.K BHALLA & S.SHIVA RAMU • BUSINESS ENVIRONMENT; PREM RAJ PANT • INTERNATIONAL BUSINESS; Prof. DR GOVINDA RAM AGRAWAL