Abstract
The free trade area was founded on 26 March 1991 in Asuncion with the Treaty of Asuncion. There are 5 members (Brazil, Paraguay, Uruguay and Argentina since 1991 and Venezuela since 2006) and 5 associate members - Chile, Peru, Bolivia, Ecuador and Colombia. The motto is 'Our North is the South'. Its important aims are the free circulation of goods, a common commercial policy, a coordination of macro economy and a harmonization of legislation. First, the MERCOSUR is an element of stability in terms of economy and safety. All countries discuss together to agree about different political agreements. They resolve questions of public interests. It reinforces the dialogue about safety and the cooperation between countries, for example, the nuclear disarmament. This union is a useful tool to strengthen and deepen the economic reforms initiated by individual member states: It improves the level of consumer welfare, which is very important for the economy and the standard of living of the population. There are a lot of exchanges between the EU and the MERCOSUR, but the HDI in Mercosur stays lower than in the European Union (and even more lower than in the NAFTA). It means that not only should the economy be developed, but also the standard of living and the consumer purchasing power.
