On this day 33 years ago, 26th March 1991, at the headquarters of the Paraguayan Central Bank (BCP) in Asuncion, the presidents of Argentina, Brazil, Paraguay, and Uruguay came together to sign the Treaty of Asunción, which formally created a new organisation: The Common Market of the South, known as Mercosur.
Paraguayan President Santiago Peña, who currently holds the rotating presidency of Mercosur, marked the anniversary with a message on social media to citizens of the bloc.
“From the Pro Tempore Presidency, we send warm greetings to all citizens of Mercosur. Together, we will continue working to strengthen our regional integration and overcome challenges to achieve sustainable development for our people” he said.
He went on to talk of the benefits the collaboration has brought, along with a commitment to continue to seek improvements. “The experience of more than three decades allows us to have a pragmatic vision, with the ability to define which aspects to prioritize and which need correction”, he added.
The Treaty of Asunción outlined the fundamental principles of Mercosur, which aimed to promote the free movement of goods, services, capital and labour among member countries, establish a customs union, and coordinate macroeconomic policies – similar in nature to the aims of the European Union (EU), albeit with some significant differences.
In addition to oversight by governments of the member states, over the years since inception Mercosur has created specific institutions to implement the bloc’s policy.
Paraguay hosts the Mercosur Social Institute, and the Permanent Review Tribunal, in Asunción.
Montevideo, the capital of Uruguay, hosts the Mercosur Parliament (Parlasur), the Permanent Representatives Commission of Mercosur, and the Mercosur Secretariat.
Argentina hosts the Institute of Public Policies on Human Rights in its capital Buenos Aires.
In addition to the four founding member countries, Venezuela is a full member but is currently suspended; all other South American countries are associate members, and both Mexico and New Zealand are observer members.
