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¿What is the Andean Pact?
This pact had its origin in 1969 as a reaction to the practical difficulties of advancing in the integration of Latin America as a whole. Initially it was made up of Bolivia, Colombia, Chile, Ecuador and Peru, but later Venezuela joined and Chile retired. After an auspicious begining, the process got stuck, in particular during the eighties when countries experimented great difficulties in the external sector which lead them to the systematic breach of their compromises. Nevertheless, since the end of that decade, and thanks to the political impulse provided by the presidents themselves and on more flexible foundations, the Andean subregional integration acquired renewed life and countries took on commitments aimed at consolidating the extended economic space. For that purpose, initially it has been sought to improve the Andean zone of free trade by means of a liberation program (reduction and elimination of tariffs between member countries) and the adoption of a common external tariff (the tariff charged on merchandise from third countries) with the final purpose of constructing a common costums regime. Likewise, it is planned to gradually dismantle exceptional lists and also the gradual harmonization of economic policies. Within the group, Colombia and Venezuela, whose commercial exhange and economic interdependance are stronger, have decided to deepen and speed up their binational integration, a process which has been facilitated by virtue of the approximation that their macreconomic policies have registered, and the dynamism shown by their economies, in such a way that the exchange has had unprecedent progress since the nineties. This has given rise to consider proposals for payment schemes using national currencies (the dedollarization of trade) with the aim of speeding up and reducing the cost of realizing payments. Likewise, the sphere of exchange has extended itself to investment projects, the placement of bonds and the acquisition of Colombian financial institutions by Venezuelan capitals. All of this, makes it plausible that in the future it wil be possible to consolidate even more this process of economical unification. In a similar manner, progress has been achieved with greater determination in the harmonization of macroeconomic policies, even though there survive areas where, due to dissimilar results, it is difficult to make quick progress.
¿What is the Group of Three (G-3)?
Towards the end of 1990, Colombia, Venezuela and Mexico established this group to consult and harmonize the regional situation, which has evolved toward more ambicious purposes of economic integration and which should result in the consolidation of a free trade zone towards the end of the nineties, including not only goods but services. This is also a gradual process which implies delicate negotiations that will allow the adaptation of the countries’ productive apparatus and special treatment for sectors where initial differences are significant (for example, iron and steel, automobil and petrochemical sectors), as well as in aspects where the difference in legislation implies difficulties for a speedy opening (for example, in the offering of financial services).
¿What is Mercosur?
Made up initially by Brasil, Argentina, Uruguay and Paraguay, a customs union was established in 1995 by means of a trade liberalization which included a progressive and automatic process of elimination of tariffs for all of the tariff universe, though with lists of exceptions which should be eliminated progressively. Obviously, this includes the adoption of a common external tariff. To faciltate and complement this program aimed at promoting comercial exchange, a harmonization of macroeconimic and sectorial policies is contemplated. The participation of the two largest South American economies, Brasil and Argentine, together with the increasing liberalization that the other economies of the region have experimented, has led other countries to join the agreement, as has been the case with Chile and Bolivia. With time, it is probable that Mercosur will attract new members and shall become the most import economic union in Latin America.
¿What is the Central America Common Market?
The purpose of establishing a unified market in Central American countries is even older than the Latin America Integration Association (ALADI) since it dates back to 1951, but its realization has been hampered by serious political events and external factors. Nevertheless, since the end of the eighties, adequate conditions have arisen to take up again the route of regional integration inspired in a joint projection outside the countries of the area. Accordingly, the Presidents of Central American countries have indicated that for such a purpose one must perfect a zone of free trade and use the regional common market to achieve a better insertion in the world market.
¿What is the Caribean Community (Caricom)?
The Carribean Community was established in 1973 by thirteen English speaking countries (Antigua and Barbuda, Bahamas, Belize, Dominica, Granada, Guyana, Jamaica, Monserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and Trinidad and Tobago) with the purpose of strengthening economic and commercial relations of member countries, and to achieve a greater degree of independance and economic progress, as well as to coordinate its external policies and achieve cooperation in noneconomic areas such as education, health and transportion. Once certain problems and setbacks were overcome, the commitment has arisen to achieve the integration that will allow the extension of the regional market complemented with an active extraregional export promotion policy and stable macroeconomic policies. Likewise, the convenience of extending the community to other states of the region has been discussed, including some which are not English speaking.
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