The paper reflects research conducted by staff in the agency's Office of Industries and Office of Economics. The views and conclusions expressed in the staff issue paper do not necessarily reflect the views of the U.S. International Trade Commission or of an individual Commissioner.

The staff issue paper examines recent trends in the economic climate of Mercosur countries, intra-Mercosur trade and bloc member trade with the United States and the rest of the world, and U.S. exports to and investment in member countries. Profiles of the four charter members -- Argentina, Brazil, Paraguay, and Uruguay -- provide a synopsis of their macroeconomic performance and of the government pricing policies, reforms, and remaining barriers affecting trade and foreign investment.

The report also profiles the industries manufacturing power generation equipment, motor vehicles and parts, medical devices and equipment, computer equipment and parts, and telecommunications equipment, which together account for about 25 percent of U.S. exports to Mercosur countries.

Market Developments in Mercosur Countries Affecting Leading U.S. Exporters (USITC Publication 3117, July 1998) will be available on the ITC's Internet server at www.usitc.gov. A printed copy may be requested by calling 205-202-1809 or by writing to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436. Requests may be faxed to 202-205-2104.