He won as congressman of Southern Leyte's 1st congressional district as part of the Lakas–CMD[1] party in the 1987 Philippine House of Representatives elections.[2][3] During his tenure as congressman, he was a member in the House Committee on Labor and Employment, the House Committee on Science and Technology, the House Committee on Justice, the House Committee on Suffrage and Electoral Reform, the House Committee of Trade and Industry, the House Committee of Ways and Means, and the House Committee on Sports.[4] He opposed the Presidential Commission Against Graft.[5] Just after the 1992 Philippine general election, Mercado was the chair of the House Agrarian Reform Committee.[6][7]
Following the 2001 Philippine general election, Rosette Lerias, an opponent of Mercado, filed an election protest against him, citing lack of merit. Two lawyers were present, though the protest was dismissed. Following the dismissal, a proclamation was filed, which was stalled when Mercado also filed a protest on May 17, which was also dismissed.[12] She also created an election protest in the 1987 elections, which was declined.[3] The next year, she accused Mercado of allegedly stealing four ballot boxes, which allegedly contains more than 146 votes in favor of Lerias.[13]