Mercosur—Mercado Común del Sur or the Southern Common Market—is a subregional integration agreement involving Brazil, Argentina, Uruguay and Paraguay, with Chile and Bolivia holding special associated status. It is now a customs union (all members have the same tariffs to the outside world) and is committed eventually to becoming a full common market. In this sense it aspires to regional integration like the EU, rather than a free trade area like NAFTA.

The Mercosur structure, though still evolving, provides several environment-related innovations. Mechanisms for public participation were provided in the original Protocol of Ouro Preto, through a Foro Consultivo Economico y Social or social and economic advisory council, which exists as part of the Mercosur institutional structure. This forum receives information from labour, business and consumer representatives. Experts from the public also attend relevant meetings of Mercosur's many technical subcommittees.

More explicit environment and trade linkages are made through various legal mechanisms that combine as elements of a developing regime. Several resolutions of the Grupo Mercado Común and decisions of the Consejo de Mercado Común have touched upon issues such as pesticides, energy policies and transport of hazardous products. In addition, meetings of the four countries' environment ministers laid a foundation for co-operation in the subregion on these issues. As a result, the Canela Declaration of 1992 created an informal working group, the Reunion Especializada en Medio Ambiente, to study environmental laws, standards and practices in the four countries. This forum evolved into the creation of a Sub-Grupo No. 6 on the environment, which is one of the recognized technical working bodies of Mercosur. This group has discussed issues such as environment and competitiveness, non-tariff barriers to trade, and common systems of environmental information.

This body has been involved for over two years in negotiating a new environmental protocol, which is being added to the Treaty of Asuncion of Mercosur. A comprehensive stand-alone treaty, this draft agreement provides for upward harmonization of environmental management systems and increased co-operation on shared ecosystems, in addition to mechanisms for social participation. It includes provisions on instruments for environmental management, including quality standards, environmental impact assessment methods, environmental monitoring and costing, environmental information systems and certification processes. It also includes a section on protected areas, and one on conservation and sustainable use of natural resources, including biological diversity and proposed language on biosafety, wildlife, forests, soil, atmosphere and water conservation. It also includes provisions for protecting health and quality of life, social participation, regional co-operation and other general mechanisms for implementing the protocol. The regime is still evolving, and the challenge at hand is to ensure that the promise of the protocol does lead to effective regional co-operation and action on these issues and objectives.

Chapter 7: Suggested readings