Brazil South America–Economy commercial Union
Brazil news: the Association system with Argentina
As envisaged by the Latin American Integration Association system, in 1986 Argentina and Brazil signed twelve commercial protocols: the first concrete step had been taken towards bringing the two countries closer together (this effort had officially started in 1985 under the Declaration of Iguaçu). To supplement and improve their former agreements, Argentina and Brazil signed the 1988 Treaty for Integration, Cooperation and Development that set the stage for a common market between the two countries within ten years. This treaty further established that the trade agreement would be open to all other Latin American countries.
After the adhesion of Paraguay and Uruguay, a new treaty was signed by all four countries on March 26, 1991 in Asunción, Paraguay, providing for the creation of a common market among the four participants, to be known as the Southern Common Market (MERCOSUL).