What is Mercosur?

Mercosur, which stands for the Southern Common Market, is indeed the largest trade agreement in Latin America. It was established to promote free trade and the fluid movement of goods, people, and currency among its member countries, which currently include Argentina, Brazil, Paraguay, and Uruguay, with Venezuela's membership suspended. The primary goal of Mercosur is to enhance economic integration within the region, making it a significant economic bloc. By fostering cooperation and policy alignment among member states, Mercosur plays a critical role in boosting trade relations and creating a competitive regional market in Latin America.

The other options do not accurately describe Mercosur; it is not an environmental regulation, military alliance, or cultural exchange program. While these can exist separately in different contexts, Mercosur's primary function is centered on economic collaboration and trade facilitation.