MERCOSUR group of countries — UPSC Prelims PYQ 1998

‘MERCOSUR’ consists of group of countries of

1. Africa
2. Asia
3. Latin America
4. South East Asia

Explanation

Option (c) is correct

• Mercosur, or the Southern Common Market, is a South American trade bloc created to promote free trade and economic integration.
• Framework: It was established under the Treaty of Asunción (1991). The Protocol of Ouro Preto (1994) granted it legal status and defined it as a customs union.
• Membership: The bloc includes five full members (Argentina, Bolivia, Brazil, Paraguay, and Uruguay) and six associate members.
• Venezuela’s membership has been suspended indefinitely since 2016 due to non-compliance.
• Economic Significance: Mercosur contributes over 60% of South America’s GDP, making it among the largest trade blocs after the EU, USMCA, and ASEAN.
• Trade Agreement: India signed a Preferential Trade Agreement with Mercosur in 2004 to expand market access, and it came into effect in 2009.
• India-Mercosur trade reached $17.9 billion in 2024-25, with Brazil accounting for $12.19 billion.

Answer: (c) Latin America