Examines trade and investment trends in the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) in the context of both the Mercosur agreement and unilateral policy changes implemented by member nations to spur economic growth. Profiles of the 4 charter members provide a synopsis of their macroeconomic performance and of the government policies, reforms, and remaining barriers affecting trade and foreign investment. Profiles 5 U.S. export industries that account for 25% of exports to Mercosur countries: power generation equip., motor vehicles and parts, medical devices and equip., computer equip. and parts, and telecom. equip.