Page 11 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

Map 3: The Paraguay and the Parana Rivers

F. MERCOSUR

Argentina, Brazil, Paraguay and Uruguay signed the treaty of Asuncion in
March 26, 1991 creating MERCOSUR or “Mercado Común del Sur.” The
main objective of that treaty is the integration of their economies creating
a large one through the free movement of goods and services,
establishing a common border tax as well as by coordination of their
macro-economic policies. The main basis is that all member countries
must live under a democratic system and are supporters of human rights,
the environment, economic development and social justice. Bolivia and
Chile are part members.

Trade among its members has increased considerably after the
foundation of MECOSUR. At present, a large percentage of their imports
and exports are taken place among its members. The Paraguay River is an
important economic waterway among all members of MERCOSUR. Goods
from far north of Bolivia and Brazil are shipped via the Paraguay River,
and 90% of Paraguay’s imports enters, and 70% exits, the country through
ports located in the Grand Asuncion. According to the IDB report, most of
that will be handled through Villeta in the future.

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