ABSTRACT
The Treaty of Asuncion is the basis of Mercosur and defines, as a stage towards a deeper economic integration in the future, the formation of a customs union among the member States. As countries try to choose the most adequate monetary regime for their economies, groups of countries, associated in free trade areas or customs unions, may also be concerned about this same issue. The chapter describes the evolution of the agreements between Argentina and Brazil, starting in the 1980s until 1990, when Mercosur was created, and also report further developments in the region. The Treaty of Asuncion is the basis of Mercosur and defines, as a first stage towards a deeper economic integration in the future, the formation of a customs union among the member States. Compared to Argentina and Mexico, fewer studies evaluate quantitatively the costs and benefits of adopting dollarization in Brazil.
