Treaty of Asunción

Last updated

The Treaty of Asunción was a treaty between the countries of Argentina, Brazil, Paraguay, and Uruguay signed on March 26, 1991. The objective of the treaty, signed in Asunción, was to establish a common market among the participating countries, popularly called Mercosur (Southern Common Market). Later, the Treaty of Ouro Preto was signed to supplement the first treaty, establishing that the Treaty of Asunción was to be a legally and internationally recognized organization.

The treaty defined a program of gradual elimination of import/export fees that would reach a free commerce zone by the end of 1994. Even though the dates of the program were not followed and the free zone was not yet reached, the treaty established the bases for the "Mercado Común del Sur" (Mercosur).


Since the Spanish American wars of independence, there have been various types of organizations and treaties with the intention of social and economic integration of South America. The Economic Commission of Latin America was created on February 25, 1948 with the object of conducting studies aimed to the integration of these countries, and increase the national markets and industrial development. The Latin American Free Trade Association (LAFTA) was created in 1960, with the same objective of regional integration, but during the 1970s, the LAFTA was unable to establish a common market among them. The South American countries could not compete with the international free markets, and the integration crisis worsened due to the 1973 oil crisis.

The Andean Pact, signed in 1969, the countries of Bolivia, Colombia, Ecuador, Peru, and Venezuela were integrated, while Chile and Panama participated as observers. The Latin American Integration Association was created in 1989 to establish economic integration between Argentina, Brazil, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, and Venezuela. Brazil and Argentina signed the Treaty of Buenos Aires that was to establish economic integration between the two countries, and the Treaty of Asunción was signed to complement the Treaty of Buenos Aires, with Uruguay and Paraguay joining them.

Related Research Articles

Latin American Integration Association

The Latin American Integration Association / Asociación Latinoamericana de Integración / Associação Latino-Americana de Integração is an international and regional scope organization. It was created on 12 August 1980 by the 1980 Montevideo Treaty, replacing the Latin American Free Trade Association (LAFTA/ALALC). Currently, it has 13 member countries, and any of the Latin American States may apply for accession.

South America Continent

South America is a continent in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. It may also be considered a subcontinent of the Americas, which is how it is viewed in the Spanish and Portuguese-speaking regions of the Americas. The reference to South America instead of other regions has increased in the last decades due to changing geopolitical dynamics.

Foreign relations of Argentina

This article deals with the diplomatic affairs, foreign policy and international relations of Argentina. At the political level, these matters are officially handled by the Ministry of Foreign Relations, also known as the Cancillería, which answers to the President. The Minister of Foreign Relations, since June 2016, is Chancellor Jorge Faurie.

Andean Community South American free-trade agreement

The Andean Community is a free trade area with the objective of creating a customs union comprising the South American countries of Bolivia, Colombia, Ecuador, and Peru. The trade bloc was called the Andean Pact until 1996 and came into existence when the Cartagena Agreement was signed in 1969. Its headquarters are in Lima, Peru.

Rio Group

The Rio Group (G-Rio) was a permanent association of political consultation of Latin America and Caribbean countries, created in Rio de Janeiro, Brazil on December 18, 1986 with the purpose of creating a better political relationship among the countries. It was succeeded in 2011 by the Community of Latin American and Caribbean States

Union of South American Nations Intergovernmental union

The Union of South American Nations is an intergovernmental regional organization that once comprised twelve South American countries; as of 2019, most have withdrawn.

The Latin American Free Trade Association, LAFTA, was created in 1960 in the 1960 Treaty of Montevideo by Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay. The signatories hoped to create a market in Latin America and offered tariff rebates among member nations. In 1980, LAFTA reorganized into the Latin American Integration Association (ALADI) which now has 13 members: Argentine Republic, Republic of Bolivia, Federative Republic of Brazil, Republic of Chile, Republic of Colombia, Republic of Cuba, Republic of Ecuador, United Mexican States, Republic of Panama, Republic of Paraguay, Republic of Peru, Eastern Republic of Uruguay and Bolivarian Republic of Venezuela.

Andean Parliament international parliament

The Andean Parliament is the governing and deliberative body of the Andean Community. It was created on October 25, 1979 in La Paz (Bolivia), through the Constitutive Treaty signed by the chancellors of Bolivia, Colombia, Ecuador, Peru and Venezuela. It entered into force in January 1984.

Bank of the South company

The Bank of the South or BancoSur is a monetary fund and lending organization established on 26 September 2009 by Argentina, Brazil, Paraguay, Uruguay, Ecuador, Bolivia and Venezuela with promises of initial capital of US$20 billion. Argentina, Venezuela, and Brazil were to have each pledged $4 billion, and Uruguay, Ecuador, Paraguay and Bolivia were to have contributed smaller amounts. The intention of the bank was to lend money to nations in the Americas for the construction of social programs and infrastructure. Documents establishing the bank as an entity were signed in 2007, and the agreement between the countries was finalized in 2009, but as of 2016, the bank had not been capitalized.

Mercosur Parliament parliamentary institution of the Mercosur trade bloc

The Mercosur Parliament, known also as Parlasur, or Parlasul, is the parliamentary institution of the Mercosur trade bloc. It is composed of 81 MPs, 18 from each member states of the bloc – Argentina, Brazil, Paraguay and Uruguay – and 9 from applying member Venezuela. Associate members – Bolivia, Chile, Colombia, Ecuador and Peru – may also hold seats in the Parliament, but with no voting powers.

Brazil–Uruguay relations Diplomatic relations between the Federative Republic of Brazil and the Eastern Republic of Uruguay

Brazil–Uruguay relations encompass many complex relations over the span of three centuries, beginning in 1680 with the establishment of the Colónia do Sacramento, to the present day, between the Federative Republic of Brazil and the Oriental Republic of Uruguay. Brazil and Uruguay are neighbouring countries in South America, and share close political, economic and cultural ties. The singularity of the bilateral relationship between the two countries originates from a strong historical connection – marked by important events, such as the establishment of the Colónia do Sacramento in 1680, the invasion of the Banda Oriental by Brazil in 1815 and the subsequent creation of the Província Cisplatina, and Uruguay's independence from Brazil in 1828. The bilateral relationship was further defined by the Uruguayan Civil War (1839–1851) and the Paraguayan War (1864–1870).

Outline of South America Hierarchical outline list of articles related to South America

The following outline is provided as an overview of and topical guide to South America.

Argentina–Paraguay relations Diplomatic relations between the Argentine Republic and the Republic of Paraguay

Argentine-Paraguayan relations are foreign relations between Argentina and Paraguay. Diplomatic relations between those 2 neighbors were established in 1811, with the signing of an agreement on Friendship, Assistance and Trade. Both countries were at war between 1864 and 1870, and never fought each other since. Argentina has an embassy in Asuncion and 2 Consulates-General. Paraguay has an embassy in Buenos Aires and 7 consulates . Both countries are full members of Mercosur, Union of South American Nations, Organization of American States, Organization of Ibero-American States, Rio Group, Group of 77, Latin American Economic System and Latin American Integration Association.

CAF – Development Bank of Latin America

The Corporacion Andina de Fomento (CAF) – Banco de Desarrollo de América Latina, is a development bank that has a mission of stimulating sustainable development and regional integration by financing projects in the public and private sectors in Latin America, and providing technical cooperation and other specialized services. Founded in 1970 and currently with 18 member countries from Latin America, the Caribbean, and Europe along with 14 private banks, CAF is one of the main sources of multilateral financing and an important generator of knowledge for the region.

Mercosur South American economic agreement

Mercosur, Mercosul, or Ñemby Ñemuha, officially Southern Common Market, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname. Observer countries are New Zealand and Mexico. Its members have a combined area of 13,771,194 km² and a population of 264 million people if counting only the full member states. The official languages are Spanish, Portuguese, and Guarani.

Member states of Mercosur

Currently, Mercosur is composed of five full members, five associated countries and two observer countries:

The integration of Latin America has a history going back to Spanish American and Brazilian independence, when there was discussion of creating a regional state or confederation of Latin American nations to protect the area's newly won autonomy. After several projects failed, the issue was not taken up again until the late 19th century, but now centered on the issue of international trade and with a sense of pan-Americanism, owing to the United States of America taking a leading role in the project. The idea of granting these organizations a primarily political purpose did not become prominent again until the post-World War II period, which saw both the start of the Cold War and a climate of international cooperation that led to the creation of institutions such as the United Nations. It would not be until the mid-20th century that uniquely Latin American organizations were created.

Argentina foreign trade relations with the European Union

Argentina has strong cultural and historical links to the European Union (EU) and the EU is Argentina's biggest investor.

Citizenship of the Mercosur is granted to eligible citizens of the Southern Common Market member states. It was approved in 2010 through the Citizenship Statute and should be fully implemented by the member countries in 2021, when the program will be transformed in an international treaty incorporated into the national legal system of the countries, under the concept of "Mercosur Citizen".

Mercosur Cities Network international organization in South America

Mercosur Cities Network, or simply Mercocities, is a network that unites a group of municipalities of the countries that participate in the Common Market of the South (Mercosur), whether they are members or associates. This organization of cities aims to promote their integration on a regional scale and stimulate development and cooperation between them.