A Memorandum for the Establishment of a Political Dialogue and Cooperation Mechanism Between Turkey and the South Common Market (MERCOSUR) was signed today by the Minister for European Union Affairs and Chief Negotiator, H.E. Egemen Bağış, who represented Turkey at the 40th Summit of the MERCOSUR Nations, held under Brazil’s pro tempore presidency in Foz do Iguaçu. Turkey has thereby become the second country to date to have established such cooperation framework with MERCOSUR.

Founded on 26 Mart 1991 by the Treaty of Asuncion, MERCOSUR is a customs union that foresees free trade and common trade policies among its members and aims at creating a common market based on the European Union model. MERCOSUR, with its headquarters in the capital of Uruguay, Montevideo, is comprised of Brazil, Argentina, Paraguay and Uruguay. Venezuela’s membership process is continuing. Bolivia, Chile, Colombia, Ecuador and Peru and are associate members.

MERCOSUR, representing a total population of around 240 million and a national income amounting to 2.5 trillion US Dollars, is, due to the political integration activities and programs implemented, one of the most prominent integration models in its region.

The signing of the said Memorandum with MERCOSUR constitutes a tangible outcome of Turkey’s strategy to open up to Latin America and the Caribbean region, a policy that has been decisively pursued in recent years. Turkey aims to diversifying and intensifying its political and economic relations with the region by way of this new mechanism that will provide for regular political consultations with MERCOSUR member states.
The trade volume between Turkey and MERCOSUR member and associated states combined was in the range of 2.9 billion US Dollars in 2009. This figure rose to 3.3 billion Dollars in the first ten months of 2010, representing a 43 % increase from the same period of the year before.
Turkey is also conducting exploratory negotiations for a Free Trade Agreement (FTA) with MERCOSUR. Having concluded two rounds of talks so far, Turkey is looking forward to launching and swiftly concluding FTA negotiations with MERCOSUR in 2011.
On this occasion an Agreement on the Prevention of Double Taxation between Turkey and the host of the MERCOSUR Summit, Brazil was signed on behalf of Turkey by H.E. Egemen Bağış, Minister for European Union Affairs and Chief Negotiator.