Regional Trade Agreement in South America: An Overview

The South American region has seen a steady increase in regional trade agreements in recent years. Such agreements have been established to promote trade and economic growth within the region, reduce tariffs, and simplify cross-border trade procedures. This article provides an overview of some of the regional trade agreements in South America.

Mercosur

The Southern Common Market, commonly known as Mercosur, is a regional trade bloc that includes Argentina, Brazil, Paraguay, and Uruguay. Venezuela was also a member until 2016, when it was suspended due to political and economic issues. Mercosur was established in 1991 with the aim of promoting economic and political integration among its members. Its key objectives include reducing trade barriers, promoting the free movement of goods and services, and harmonizing national policies.

The Andean Community

The Andean Community is a regional trade bloc that includes Bolivia, Colombia, Ecuador, and Peru. It was established in 1969 with the aim of promoting regional integration, economic growth, and social development. Its key objectives include reducing trade barriers, promoting trade and investment, and harmonizing national policies. The Andean Community has a free trade agreement with Mercosur that allows for the free movement of goods between the two blocs.

Pacific Alliance

Established in 2011, the Pacific Alliance is a regional trade bloc that includes Chile, Colombia, Mexico, and Peru. The alliance aims to promote economic growth, trade, and investment among its members. Its key objectives include reducing trade barriers, promoting free trade, and facilitating cross-border trade. The Pacific Alliance has a free trade agreement with Mercosur that allows for the free movement of goods between the two blocs.

Chile

Chile has a number of regional trade agreements that enable it to access foreign markets and promote its exports. The country has free trade agreements in place with the United States, the European Union, China, Japan, and South Korea, among others. Chile is also a member of the Trans-Pacific Partnership (TPP), which is a regional trade agreement that includes 11 countries in the Asia-Pacific region.

Conclusion

Regional trade agreements have become an important tool for promoting economic growth and trade in South America. The various regional trade blocs have different objectives and ways of achieving them. However, they all aim to reduce trade barriers, promote the free movement of goods and services, and harmonize national policies. As such, they provide opportunities for businesses to increase their market access and promote their exports.