Introduction Mercosur (Southern Common Market) initially started with the Asuncion Treaty which was inked by Brazil, Argentina, Paraguay and Uruguay in 1991 to establish a free trade province and finally to establish a common market. In 2007, Venezuela joined the forum. (Tondi 353). The main aim of Mercosur is to offer the probabilities to expand exports, to augment investment and to create a greater economic development among member nations. (Dominguez & Oliveira 178). The core objective of Mercosur is to institute a customs union in common and a market place in common between member nations of Mercosur. (www.associatedcontents.com). Mercosur market includes free transportation of products and exclusion of custom duties among members within regions. (Motley 2006). When there was an expansion in Mercosur in July 2006, the internal dynamics of Mercosur are being altered. Admission of Venezuela, which is the third major economy of Mercosur group after Brazil and Argentina which aggregates over 250 million population in the regional bloc and an aggregate of a GDP of $ 1.1 trillion. To become a full member, Venezuela is required to implement Mercosur regulations and rules, which include espousal of CET and transpose Mercosur contracts with third nations into its domestic legislation. (UK House of Commons Report 80). Venezuela’s government expenditure and its economy are depending upon its oil income. About thirty percent of Venezuela’s GDP comprises of oil income. Further, oil exports constitute about eighty percent of Venezuela’s export. About 16% of Venezuela’s GDP is made up from its service sector. Though, t he economy of Venezuela is very robust, its entry into Mercosur will help to expand its economy. The main objective of associating with Mercosur is to expand its business within the region. (Motley 2006). Venezuela became a full member of Mercosur in January 2006. However, Venezuela’s membership is not absolute as there is a midway phase to depart CAN and to synchronize strategies with other associate nations of Mercosur. (Massabie 153). Though Venezuela approved the” Climate Change Convention in March 1995”, but it was the very last Latin American nation to approve in “February 2005 the Kyoto Protocol. “ For many years, Venezuela declined to approve the Kyoto’s Protocol in consonance with the OPEC as Kyoto Protocol did not acknowledge condition Venezuela as the major seller of oil. (Massabie 153). Mercosur has been deteriorated frequently due to political chaos between its member nations. The admission of Venezuela to the Mercosur in the year 2008 brings a new member with a clearly varied political ideology into the Mercosur and has once again posed a threat to the political decision authority of Mercosur. (Tondl 28). It is to be observed that Venezuela is playing an active role in all Latin American integration mechanisms. Venezuela was an associate of the “Andean Community of Nations (Comunidad Andina de Naciones, CAN)”. (O’Keefe 99). However, Venezuela said goodbye to CAN in 2005 averring grave divergence with other member nations. In 2004, Mercosur together with Colombia and Ecuador became an associated member of Mercosur. The Protocol of Adhesion stipulates that it will be enfor