Southern Cone Common Market: Mercosur Marketing

Since the signing of the Assucion treaty signed in 1991, the hoped for benefits for the countries in the Mercosur have not been completely realized for all involved. This work will concentrate on the marketing and trade issues of each country in the region.

The Southern Cone Common Market is a Latin American trade organization that is called Mercosur and was established in 1991 for the purpose of increasing the cooperation in economic efforts in the member countries. Member countries are Argentina, Brazil, Bolivia, Chile, Uruguay, Paraguay and Peru. The economies are different from country to country inside the Mercosur region. Brazil and Argentina were originally at odds and had been for many years top competitors preceding entrance into Mercosur. The goals in Mercosur are gradual elimination of tariffs between the member nations. Since the 1991 signing of the Assuncion Treat trade between the member countries has increased dramatically. The Assuncion Treaty was signed to establish a "common-trade market allowing for freedom of movement between countries and in order to benefit from an increased productivity.

The economy in Chile is based on mineral export, which can be credited for one-half of all exports of Chile. Chile is the largest producer of copper in the world and agriculture is the basis for ten percent of the national wealth in Chile. . The main exports are petroleum, wheat, capital goods, spare parts and raw materials. Chile has a severe problem with producing adequate food supply for the country

Peru's economy is based on agriculture in coffee, cotton, sugarcane, rice, wheat, potatoes, corn, plantains, coca; poultry, beef, dairy products, wool; fish. Industries are agriculture, mining and quarrying, manufacturing, construction, transport, services. Peru's natural resources are copper, silver, gold, petroleum, timber, fish, iron ore, coal, phosphate,...

Peru's exports consist of fish and fish products, gold, copper, zinc, crude petroleum and byproducts, lead, coffee, sugar, cotton. Imports are machinery, transport equipment, foodstuffs, petroleum, iron and steel, chemicals, pharmaceuticals.
Uruguay began its fourth year of recession in the year 2002. The marketing and financial costs have affected access of Dairy Products to the Brazilian market. Problems exists in the paper industry due to costs because of excess of customs bureaucratic procedures, regulation on regional transportation and delays at border due to restrictions at times. Value Added tax and corporation income tax 12% OF FOB value, disadvantage regarding local producers. Other barriers import licenses, surveillance over imports or restrictions on trade-related financial practices.

Brazil: One of the largest economies in the world. Agriculture, mining and manufacturing as well as service are well developed. Approximately 1/2 of Brazils workforce is employed in the agriculture sector. Main crops are coffee, citrus fruit, soybeans, sugarcane, rice, corn, cocoa, cotton tobacco and bananas. Livestock of which cattle, pigs and sheep are more numerous. Timber is also an important export but there are problems in this area due to the illegal harvesting of timber. Brazil is the world's largest producer of both coffee and citrus juice. Brazil has a vast store of minerals including iron ore, quartz, chrome, iron ore, manganese, industrial diamonds, gem stones, gold, nickel tin, bauxite, uranium and platinum. Brazil is the largest iron ore producer in the world. Manufacturing industries include textiles, chemicals, shoes, food products, steel, motor vehicles, ships and machinery. Electricity is water powered with untapped hydroelectric potential extensive in the Amazon basin.

Bolivia is one of poorest in Latin America with illegal growing of coca (cocaine source) Only other major crops are…