Regional Integration: The Case of Mercosur

The main objective of this research paper is to examine the nature, role, and scope of the activities of the Common Market of the Southern Cone (Mercosur)-a regional organization among Argentina, Brazil, Paraguay, and Uruguay. Following a trend of regional economic integration by European and many Third World countries, Mercosur\u27s members seek development via increased trade among members, greater efficiency, and economic growth. This research begins by testing the application of Functionalism and Neofunctionalism integration theories to the nature and role of Mercosur. Next, this research evaluates the trade off between economic benefits and political costs in Mercosur. While the EU has moved toward political and economic integration via a supranational body, Mercosur member states are seeking economic integration without such an imposing structure. In fact, Mercosur emphasizes that regional decisions should be made first by their respective Foreign Affairs Ministry officials and then coordinated among all members via negotiations, without a role for a supranational body. Methodologically, the paper presents a historical analysis of relations among Mercosur members, an overview of its economic development, and addresses the challenges and successes of this organization. This research is not limited to investigating only secondary sources. It also relies on primary data produced by open ended interview with Mercosur expert Jean-Marie Lambert in Brazil