Mercosur was created in 1991, when Argentina, Brazil, Paraguay and Uruguay signed the Treaty of Asuncion [PDF], an agreement that calls for the “free movement of goods, services and factors of production between countries.” The four countries agreed to abolish tariffs, introduce a common external customs duty of 35% on certain imports from outside the bloc and pursue a common commercial policy towards third countries and blocs. The founding members hoped to create a common market similar to that of the European Union and even envisaged the introduction of a single currency. The rise of populism, President Donald Trump`s “Make America Great Again” mercantilism, the intensification of the US-China trade war and the fear of a global recession point to a new protectionist era. Nevertheless, new trade agreements are still being signed, perhaps the most important in Latin America, where at least some politicians remain enthusiastic about free trade. The region reflects the current emphasis and traction on the conditions of globalization and how the ideas that originally shook them up. After a few weeks, Brazil invited Argentina to a similar meeting, in Itaipava, also in a private residence. This showed the acceptance of the Argentine initiative and the conclusion of an agreement to promote the economic development of the two countries and integrate it into the world. This meeting gave birth to the programme of integration and economic cooperation between Argentina and Brazil or PICE (Portugal: Programa de Integração e Cooperação Econômica Argentina-Brasil, Spanish: Programa de Integración y Cooperación Económica Argentina-Brasil).  Minutes No.
20 of the program proposed the Gaucho as a currency for regional trade.  For many, the idea of integration in South America seemed rather an abstraction, due to various unsuccessful experiments in the past. However, this was perceived as different.  On November 21, 2016, Paraguayan Foreign Minister Eladio Loizaga announced that Venezuela would be suspended in December 2016, after giving the country three months to reform its legislation to meet Mercosur`s requirements, with Mercosur stating that “the rules on trade, politics, of democracy and human rights” were to be revised in Venezuela.  On December 1, 2016, Venezuela was suspended from Mercosur.  The EU is already mercosur`s largest trade and investment partner and the second largest trading partner in goods. . . .