Solution:• The Southern Common Market (MERCOSUR for its Spanish initials) is a South American regional economic organization.
• It is the fourth largest integrated market after the European Union (EU), North American Free Trade Agreement (NAFTA), and ASEAN.
• It was created in 1991 by signing the Treaty of Asunción.
• Objective: Free movement of goods, services, capital and people and it became a customs union in January 1995.
Member countries:
• It originally comprised Argentina, Brazil, Paraguay, and Uruguay as its members.
• Bolivia and Venezuela joined it later. (Venezuela has been suspended since December 1, 2016).
• Mercosur also counts Chile, Colombia, Ecuador, Guyana, Peru, and Suriname as associate members.
• Headquarters: Montevideo, Uruguay.
• Its official working languages are Spanish and Portuguese.
Governance of MERCOSUR Group
• Common Market Council: It is the bloc’s highest decision-making body, and provides a high-level forum for coordinating foreign and economic policy.
• The group consists of the foreign and economic ministers of each member state, or their equivalent, and decisions are made by consensus.
• The group’s presidency rotates every six months among its full members.
• India and MERCOSUR: India and MERCOSUR signed a Preferential Trade Agreement (PTA) in 2004