MERCOSUR

MERcado COmún del SUR. Customs union of four Southern-cone countries (Argentina, Brazil, Paraguay, and Uruguay) established under the 1991 Treaty Of Asunción. Formed on the pattern of European Community's Treaty Of Rome, it allows duty free inter-Mercosur trade and levies a common external-tariff (0 to 20 percent) on non-member countries. In 1996, Bolivia and Chile joined it as its associate members. Called Mercosul in Brazil.