MERCOSUR is an open and dynamic process, since its creation, the main objective has been to promote a common space that generates business and investment opportunities through the competitive integration of national economies into the international market. Mercosur is composed of 5 sovereign member states; Argentina, Brazil, Paraguay, Uruguay and Venezuela and seven associated states; Suriname, Guyana, Colombia, Ecuador, Peru, Chile and Bolivia. Trade diversion is an economic term related to international economics in which trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union. Example a shift in the international trade caused by one nation giving trade preferences to another, resulting a decline in trade with a third country. Mercosur is a trade diverted since it embraces economic integration, there is a large effects of Mercosur on trade volumes of other member countries, there are bilateral trading patterns and also estimation of the extent to which the bloc has resulted in their trade creation or trade diversion