Objectives of MERCOSUR

In accordance with the Treaty of Asunción for the Establishment of a Common Market, the States Parties agreed to create a Common Market, to be established by December 31, 1994, under the name “Southern Common Market” (MERCOSUR).

This Common Market involves:

• The free movement of goods, services, and factors of production among member countries, including, among other measures, the elimination of customs duties and non-tariff barriers to trade, as well as any other equivalent restrictions.
• The establishment of a common external tariff and the adoption of a unified trade policy toward third countries or groups of countries, along with the coordination of positions in regional and international economic and trade forums.
• The coordination of macroeconomic and sectoral policies among the States Parties, including policies on foreign trade, agriculture, industry, taxation, monetary and exchange matters, capital markets, services, customs, transportation and communications, as well as other areas as agreed, in order to ensure fair conditions for competition among members.
• The commitment of the States Parties to harmonize their legislation in relevant areas to strengthen the integration process.

MERCOSUR is an intergovernmental integration process in which each State Party has one vote, and decisions must be made by consensus, with the participation of all States Parties.

Decision-Making Bodies

MERCOSUR reaches its decisions through three main bodies: the Common Market Council (CMC), the bloc’s highest authority, which provides political direction for the integration process; the Common Market Group (GMC), which oversees day-to-day operations; and the MERCOSUR Trade Commission (CCM), which administers the common trade policy instruments. These bodies are assisted by more than 300 negotiating forums covering a wide range of areas. These forums, composed or representatives from each member country, develop initiatives for consideration by the decision-making bodies.

Once rules have been negotiated and approved by the bloc’s decision-making bodies, they are binding and, where necessary, must be incorporated into national legal systems in accordance with each country’s domestic legal procedures.

To ensure the simultaneous application of MERCOSUR rules across the States Parties, a procedure has been established for their incorporation into national legal systems, based on Article 40 of the Ouro Preto Protocol.

Permanent bodies

Over time, and in order to implement its regional policies, MERCOSUR has established various permanent bodies in different cities. These include the MERCOSUR Structural Convergence Fund (FOCEM), the Institute of Public Policy on Human Rights (IPPDH), the MERCOSUR Social Institute (ISM), the MERCOSUR Parliament (PARLASUR), the MERCOSUR Secretariat (SM), and the Permanent Review Tribunal (TPR).

Process for the Entry into Force of Rules Issued by Decision-Making Bodies

1. The rule is approved by consensus within the relevant decision-making body.
2. Each State Party incorporates the rule into its national legal system (by decree, law, or other legal instrument).
3. Each State Party notifies the MERCOSUR Secretariat of the incorporation.
4. Once all States Parties have reported the incorporation, the Secretariat issues a formal communication.
5. The rule enters into force simultaneously in all State Parties 30 days after the Secretariat’s notification.

Exceptions:

• Rules that govern MERCOSUR’s internal institutional functioning;
• Rules whose content is already regulated under a State Party’s domestic legislation. In such cases, the State must inform the Secretariat of the existence of the national rule in question.