Trade Agreement South America

Trade Agreement South America: What You Need to Know

In the world of international trade, the South American continent has been growing in importance over the past few decades. With a wealth of natural resources and a booming middle class, the region is home to many countries that are quickly becoming major players on the global economic stage.

In recent years, these countries have come together to form several trade agreements that seek to increase regional cooperation and open up their economies to international trade. In this article, we`ll take a closer look at some of these agreements and what they mean for businesses operating in South America and beyond.


The most well-known trade agreement in South America is undoubtedly Mercosur, which stands for the Southern Common Market in Spanish. This organization was formed in 1991 by Argentina, Brazil, Paraguay, and Uruguay with the goal of creating a common market among its members and promoting economic integration.

Over the years, Mercosur has expanded to include two additional members: Venezuela and Bolivia. The organization has also signed several free trade agreements with other countries and blocs, including the European Union, Israel, and Egypt.

For businesses operating in South America, Mercosur represents a huge opportunity for increased trade and investment. The common market provides for the free movement of goods, services, and people among its members, which can help to reduce trade barriers and streamline business operations.

Alianza del Pacífico

In addition to Mercosur, there is another major trade agreement in South America: the Alianza del Pacífico, or Pacific Alliance in English. This organization was formed in 2011 by Chile, Colombia, Mexico, and Peru with the goal of promoting trade and investment among its members and with other countries in the Asia-Pacific region.

Since its formation, the Pacific Alliance has grown in importance, with several countries in the region expressing interest in joining. The organization has also signed several free trade agreements, including with Australia, Canada, and New Zealand.

For businesses looking to expand into South America, the Pacific Alliance represents an opportunity to tap into a growing market with strong trade links to the Asia-Pacific region. The organization`s members are known for their stability and business-friendly policies, which can help to create a favorable environment for investment.

Common Themes

While Mercosur and the Pacific Alliance are very different organizations, they share several common themes that are driving the growth of South American trade and investment. These include:

– A desire for regional integration: Countries in South America are increasingly recognizing the benefits of working together to promote economic growth and stability.

– A focus on free trade: Both Mercosur and the Pacific Alliance have a strong commitment to reducing trade barriers, which can help to increase the flow of goods and services and create new business opportunities.

– A push for diversification: South American countries are keen to reduce their reliance on traditional trading partners and explore new avenues for trade and investment. This is leading to increased interest in countries in Asia and other regions.


As South America continues to grow in importance on the global economic stage, the region`s trade agreements are becoming increasingly valuable for businesses looking to expand into new markets. Whether through Mercosur`s common market or the Pacific Alliance`s focus on the Asia-Pacific region, these agreements are helping to create a more integrated and open South American economy that is ripe for investment.