|El Sur del Sur: The Souternmost South
Argentina, Inter-American Agreements
|Where We Are|
second stage in the American unifying process was characterized by the constitution
of "sub-regional common markets", such as the Pacto Andino
(Andean Pact), the Comunidad del Caribe (CARICOM, Caribbean
Community) and the Mercado Común Centroamericano (MCCA,
Central American Common Market). Unlike the ALALC, these markets
achieved an actual customs union, which also benefited from the similarity
of economic and political backgrounds prevailing in the countries involved.
In 1980, the creation of ALADI (Asociación Interamericana de Integración, Inter-American Association of Integration) came to replace the ALALC. With this new organization there was a possibility to negotiate multi-lateral trade treaties based on bi-lateral agreements. The countries integrating ALADI were the same to take part in the former ALALC.
1990, with an agreement between Argentina and Brazil, a new stage
for integration began. Later on, Paraguay and Uruguay entered into this
bi-lateral pact. The four countries made up the Mercado Común
del Sur: MERCOSUR
( Southern Common Market), signed in 1991. On that occasion, it was
decided that the possibility for the inclusion of Chile and Bolivia would
remain open; as well as the removal of customs taxes, the setting of a common
tariff and also the coordination of macro-economic policies.
In a new gathering held in 1994, BANASUR (Bancos Nacionales del Sur, Southern National Banks) was established, constituting a unified banking network aiming at opening new credit lines, enlarging foreign trade and capital flow and also participating in the combined assistance to the financial operations of industrial, commercial or investment projects. This new bloc represented by Mercosur also aims at initiating a relationship with other similar organizations such as the MCCA, Pacto Andino and CARICOM. Once these goals are achieved, the next objective is the co-ordination with the NAFTA (North American Free Trade Agreement), which links Canada, United States and Mexico.
It seems clear that there is an integrating trend at a continental level. In the 1994 summit conference there were plans towards the formation of a common market comprising the whole continent, from Alaska to Tierra del Fuego.
|Where We Are
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© 1996-2007 Mario E. Farber, Irene N. Raizboim. All rights reserved.