The MERCOSUR is a newly formed regional economic integration in the South American Cone, uniting Argentina, Brazil, Paraguay and Uruguay. In a few years, its member countries have gained economic importance in the world trade scene, attracted foreign investment and considerably increased their intra-regional trade. But at its creation, following the European Union (EU) example, MERCOSUR aimed to form in a very short time period a common market, which it has failed to do so thus far. Although MERCOSUR is only less than ten-year old, it is possible to assess its achievements and deficiencies by comparing it to the two major world regional agreements: the North American Free Trade Agreement (NAFTA) and the EU.
