Politics

47th Anniversary of the Founding of the Andean Community

Almost Half a Century Working for Regional Cooperation

May 30th, 2016
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Exactly 47 years ago, a meeting between the states of Ecuador, Colombia, Peru, Bolivia and Chile was held with the intention to improve the integration, economic and social cooperation, and to improve together the living standards of its citizen’s states. During this meeting the Cartagena Agreement which launched the Andean Pact was signed.

The Andean Community is characterized by the special mechanisms and measures that drive the advance of the region, the community counted with the addition of Venezuela (from 1973 to 2006) and the output of Chile. In 1997 the presidents decided to add some reforms in the Cartagena agreement in order to be adapted to the changes occurring in the international arena.

It went from a model of "import substitution" protecting the domestic industry with high tariffs to an open international trade model.

At the meeting of Galapagos, the Strategic Design and Work Plan was approved, where the new model shows, by which the countries eliminated the tariffs among themselves and formed a free trade area in 1993. This allowed the intra-communitarian trade to grow lot and also to generate thousands of jobs. Services were also liberalized, especially transportation in its various forms.

Among the achievements made since its creation, stands out a legal common order that allows Community rules, an Andean system of dispute settlement, preferential access for products from the Andean countries to the European Union and the United States, an advancement in harmonizing instruments and economic policies, the approval of a General Framework of Principles and Rules for Liberalizing Trade Services in the Andean Community, the adoption of the Guidelines for Common Foreign Policy or the signed between the Andean Community and the United States for the establishment of a council that would promote exports and attract investments.

 

References

Cultural Diplomacy News
Iñaqui González, CD News