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MercosurMercosur is an economic common market that began operating in the southern cone of South America in 1995. Mercosur or Mercosul (Spanish: Mercado Comn del Sur, Portuguese: Mercado Comum do Sul, English: Southern Common Market) is a trading zone among Brazil, Argentina, Uruguay and Paraguay, founded in 1995. Its purpose is to promote free trade and movement of goods and peoples, skills and money, between these countries. Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela have associate member status. Many South Americans see Mercosur as a useful bulwark against the encroachment of the United States in the region, either in the form of the Free Trade Area of the Americas (FTAA) or in the form of bilateral treaties. But Mercosur was signficantly weakened by the collapse of the Argentine economy in 2002, and indeed some critics believe the refusal of the Bush administration to bail out Argentina was based on its desire to undermine Mercosur, which would be a threat to what some say is a divide-and-conquer strategy for maintaining dominance over the economies of Latin America. In December 2004 it merged with the Andean Community trade bloc (CAN) to form the South American Community of Nations, patterned after the European Union. The name Mercosur is formed from the Spanish phrase Mercado Comn del Sur which means Southern Common Market. There are more than 220 million consumers in the market. The combined Gross Domestic Product of the member nations is more than one trillion dollars a year. The goals of a free-trade zone amonng member nations: - To make member economics more stable;
- To increase trade within the region and thereby decrease dependency on unstable global markets;
- To channel some of the profits of improving economics to those people and groups that most need help.
Much of this information comes from the Texas Edition of McDougal Littel's World Geography textbook. See also: trade bloc External links
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