Resilience and Trade Diversification of the MERCOSUR

Abstract

The Southern Common Market or MERCOSUR is one of the emerging regional blocs (or groups) that existed within the Latin American Region to promote economic growth and integration for the benefit of its member states. Through the Treaty of Asuncion the founding members include Brazil, Argentina, Paraguay, and Uruguay as full members. MERCOSUR admitted Venezuela as a full member but suspended its membership due to political unrest that happened. Nevertheless, the MERCOSUR also has its share of associate members such as that of Chile to further promote regional networking, bilateral trade, and even multilateral relations. This study aims to examine the different trade policies and diversification presented by the MERCOSUR through its member states with focus on its founding countries and that of Chile. It will utilize qualitative data and analyze the collected data through documentary and content analysis comprehensively to address and compare the strategies done by the member states. Comparison includes their agricultural products, trade strategies, historical progress, political influence, and most important would be the increase or decrease for its economy. Considering that the study is limited to secondary data, recommendations include additional primary data research to utilize and maximize the state and non-state actors who are involved in the progress and growth of these member states. Lastly, one has to consider that there can be changes in terms of the enhancement of trade relations and involvement due to the continuously changing economic climate overtime taking into account that the member states of the MERCOSUR are still developing countries.