Origins and History Of Mercusor

Mercosur can be said to have begun with the 1979 Tripartite Agreement with Argentina, Brazil and Paraguay. This agreement was carried out to resolve disputes around South American Water reserves. Notably the Itaipu Dam and the Parana River. This was very important because according to Gian Luca Gardini, this event was "the first manifestation" of these relations (Gardini, Making Sense Of Rapproachment Between Argentina And Brazil, 1979-82, 2006).

This in turn had lead to both Argentina and Brazil's governments discussing in more detail on measures of integration. Which can be backed up further in the 1980's because Brazil could see the benefit of international co-operation with Argentina from a military standpoint due to the shift towards a militaristic international focus which shifted further with the Constituent Assembly (Mariano, 2012). This is very important because within this institution South American integration was an issue that was brought to the forefront (Gardini, The Origins Of Mercusur: Democracy And Regionalisation In South America, 2010).

In 1986, President Alfonsin and Sarney signed PICE (Programma De Integracion Y Cooperacion Economica) and in 1988, the Treaty Of Integration, Co-operation and Development  (Argentina-Brazil, 1988). This was incredibly significant in leading to the establishment of Mercursor because this established a common market system for South America, which in turn mirrors the European Union's Single Market policy for international trade without barriers, showing a strong similarity (Commission, 2018). 

1991, The Treaty Of Asunción was signed forming official economic and trade based ties between Paraguay, Brazil, Argentina and Uruguay. Developing the common market integration of South America even further than before. Ensuring trade terms with third world countries which would increase the international standing further, and later on developed into allowing free movement of labour (Filho, 1999). This event officially established Mercusor as an organisation.

 1994, Ouro Preto Protocol developed beyond what Asunción established. The Free Trade Area was transformed into a Customs Union, strengthening the Common Market further. (Mercusor, 1994)

1996, Free Trade Agreement was signed between Bolivia and Mercursor following through on their previous expressed interest to join Mercursor (Mercusor, 1994). This was because they claimed to have understood the significance of co-operation within the region and made a case for their importance amongst the region (SICE, 2005). 

2003, Peru becomes an associated member of Mercusor following the signing of another Free Trade Agreement by President Toledo (AP/LIME, 2003), with the intention to eventually become a full member (AMP, 2003).

2004, Mercusor signs co-operation agreement with Andean Community which created the South American Community of Nations (European Commission, 2007). This action made Colombia and Ecuador associate members as a result. (Onslow-Cole, 2016)

2006, Venezuela signed the Accession Protocol allowing them to become members of Mercusor (Revanales, 2016). 

May 2007, Mercusor Parliament was inaugurated for the first time in Montevideo, Uruguay. 18 members were selected from the member countries respective legislatures (Lucci, 2013). This parallels the European Parliament which is elected via the Party List System, Single Transferrable Vote or First Past The Post depending on the member state (Brox, 2018). This was later developed further in 2010 with a Political Agreement with the European Union for a more democratic Mercosur Parliament, which increased Brazil and Argentina's seats to 75 and 45 respectively, while Paraguay and Uruguay retained the original 18 members (Mercopress, 2010).

2012, Mercusor suspends Paraguay's membership due to the impeachment of President Fernando Lugo putting them outside the Trade Bloc until a new leader was elected. However no economic sanctions were placed (BBC News, 2012) This was significant because it meant that the barrier for Venezuela to become a full member; The Paraguayan Legislatures approval,  no longer existed therefore leading to them becoming a full member. However, when this happened a new condition was imposed on Paraguay for their re entry, the recognition of Venezula's membership. (Frizzera, 2013). Paraguay was later readmitted into Mercusor after the inaugaration of President Cartes (Beittel, 2017).

Venezuela however was suspended from Mercusor due to their failure to co-operate with trade agreements, and because of the economic and political unrest within the country. Other member states have agreed that this suspension remains indefinite until the situation reaches acceptable levels. (John B Brew, 2017)