Mercosur
Mercosur
GEO/150 Geography of World Commerce
Instructor: Douglas Dribben
University of Phoenix
September 7, 2006
Word Count: 1657
Mercosur
Most South American nations are third world countries. It is noteworthy to understand the development of the Latin American third world countries, one because it is so recent and two because they are forming trading blocs to build a stronger presence in the global economy. Regardless of political agendas, war, strife, exorbitant inflation, and dictatorships, the leaders of the South American nations were perceptive enough to see the long-term benefit of a free trade agreement within the Latin American bloc. In the mid-1980’s, Brazil and Argentina began the movement that would eventually take the form of the Treaty of Asuncion, and include Brazil, Argentina, Paraguay, and Uruguay. The Treaty of Asuncion signed in 1991, called for the establishment of a formal trading bloc between Latin American countries by December 31, 1994. On January 1, 1995, Mercosur was ratified. Chile and Bolivia would join within the next two years. The most recent nation to join Mercosur is Venezuela, sanctioned in July 2006.
While politicians at the national level lobby for trade regulations and reduction of tariffs, it is the local level politicians promoting the approval of a city level Mercosur summit. The Red Mercociudades (loosely translated, Red Market Cities) is a conglomeration of approximately 90 cities throughout Argentina, Brazil, Chile, Paraguay and Uruguay, including the capital cities of Brasilia, Buenos Aires, Asuncion and Montevideo. Mercosur cannot be built "under the exclusive guidance and control of national governments,” said the gathering's host, Belo Horizonte Mayor Celio de Castro. (MERCOSUR: Cities Want to be Active Participants in Mercosur, 1999)
Failing to appreciate the needs and desires of the localities could be a grave oversight. The...
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