Andean community

Current Members

•   Bolivia (1969)
•   Colombia (1969)
•   Ecuador (1969)
•   Peru (1969)

Associate Members

Under agreements of the Andean community with Mercosur and / or the Union of South American Nations .

•   Argentina (2005)
•   Brazil (2005)
•   Uruguay (2005)
•   Chile (2006)

Observer Countries

•   Spain

Former members

•   Venezuela (1973-2006; since July 31, 2012, part of MERCOSUR)
•   Chile (full member from 1969 to 1976 ; observer from 1976 to 2006 ; associate member since 2006)

The purpose of the community is to promote the development of participating countries through their integration and socio-economic cooperation; accelerating economic growth and employment; creating a Latin American common market.

Activities

• development of a single economic policy, coordination of ongoing projects;
• harmonization of legislation: monitoring the application of legal norms adopted within the community and their unified interpretation;
• establishing close mutual relations between the regions and governing bodies of the Andean community through subsidiary bodies - the Advisory Council of Private Entrepreneurs and the Andean Institute of Labor.

The Andean Pact gained particular fame in the history of the integration of developing countries - an attempt to immediately limit the influence of foreign monopolies on the scale of an entire group. The main measure in this direction was the introduction of the “General regime in relation to foreign capital, trademarks, patents, licenses”, designed to establish control over the activities of multinational companies .

These measures stimulated the transformation of foreign enterprises created after 1974 into national or mixed ones. When establishing such an enterprise, at least 15% of the shares shall be transferred to the state in whose territory it is located.

An important provision of the general regime was the introduction of restrictions on profits exported by foreign companies. Annually, it was allowed to transport abroad not more than 14% of the registered amount of direct investments. At the same time, the scope of application of foreign capital was limited: it was not allowed in insurance, domestic trade, transport, and the media.

Since 1976, in many countries of the community, some provisions of the general regime have been relaxed under the Lima Protocol ^[2] .

Andean integration system

Andean integration system, created in 1996 , consists of three main governing bodies:

1. Presidential Council;
2. Council of Foreign Ministers;
3. Andean Community Commission.

Presidential Council - since 1990 is the highest governing body of the Andean community. The Council includes the presidents of the participating countries. At regular meetings of the Council, the integration policy of the community is discussed taking into account the interests of subregions, an assessment of the achieved results is carried out.

The Council of Foreign Ministers is a political cooperation body composed of foreign ministers of the participating countries. The Council is called upon to coordinate international cooperation, and also interacts with regional blocs.

Andean Community Commission is the legislative body responsible for developing community decisions. The Commission: official representatives of each country at the level of ministers of trade. Meetings are held several times a year with the invitation of specialists, depending on the topic of the issues discussed. Decisions on trade issues are binding on member countries.

The functions of the Commission of the Andean Community: development, implementation and evaluation of the general policy in the field of economic integration for trade and investment; taking measures to achieve the goals and objectives; coordination of the joint position of member countries in international organizations and negotiations with third countries and blocs.

Subsidiary Structural Units

The following are the auxiliary structural units of the Andean Community of Nations:

• General Secretariat;
• Andean Parliament;
• Andean Court;
• Andean Development Corporation (AKP);
• Latin American Reserve Fund (LRF);
• Association of Telecommunication Commissions;
• Union of Private Entrepreneurs;
• Andean Institute of Labor.

Andean Parliament - includes parliamentarians of national congresses of each member country. Since 2007, the parliament has been composed of parliamentarians elected through direct general elections. The Andean Parliament participates in the legal process on the basis of a proposal of draft decisions of common interest; promotes the harmonization of the laws of member countries and the coordination of the Andean parliaments with the parliaments of other states.

Andean Development Corporation (AKP) , formed in 1968, acts as a development bank, as an investment bank, and as an agency for economic and financial assistance.

Latin American Reserve Fund (LRF) - manages part of the foreign exchange reserves of member countries to maintain balance of payments and harmonize financial and monetary policies.

Association of Telecommunication Commissions - used to deepen cooperation, promote the development of telecommunication services in the region.

May 26, 1969 - the organization of the Andean Pact ( English Andean Pact ) as a result of the signing of the Cartagena Agreement between Bolivia , Chile , Colombia , Ecuador and Peru .

1973 - Venezuela joined the Andean Pact.

1976 - Chile led by Augusto Pinochet withdrew from the community due to economic differences.

1989 - the signing of the ISA Declaration , aimed at consolidating the joint efforts of the member countries of the community, strengthening foreign relations, uniting Latin America through the formation of a common market.

1990 - adoption of the Andean Strategy, in which three main goals were formulated:

• development of the Andean economic space;
• deepening international relations of the Andean countries;
• contribution to the unity of Latin America.

The "Act of Peace", adopted in the same year, put forward as the most important tasks:

• deepening the process of integration of the Andean countries;
• the implementation of its individual stages (free trade zone, customs union),
• as well as other measures necessary to create the Andean common market.

1996 - The Trujillo Protocol introduced significant changes to the Cartagena Agreement, changing the structure of community governance bodies. The Andean Pact was renamed the Andean Community of Nations. Andean integration system organized.

2001 - the creation of a single passport for citizens of member countries of the Andean Community.

2003 - the Andean community and MERCOSUR entered into a memorandum on joint measures to organize free trade between the countries of these two blocs.

Colombia and Ecuador since 2004 , and Peru since 2003 received the status of associate members of Mercosur .

January 1, 2005 - the introduction of a visa-free regime between the member countries of the Andean community. Border crossing is carried out according to internal passports, and entry into the territory of Venezuela by migration cards.

2006 - Venezuela , represented by President Hugo Chavez, announced her desire to leave the Andean community. Among the main reasons for the exit was called a free trade agreement with the North American Free Trade Area ( NAFTA ), previously concluded between the United States , Colombia and Peru . This agreement, according to Hugo Chavez, caused irreparable damage to the entire community. On April 22, 2011 , Venezuela officially left the Andean community after technical processing of trade agreements with the countries of the commonwealth. ^[3]

September 2006 - The Andean Council of Foreign Ministers approved the return of Chile as an associate member.

2011 - Spain joined the community as an observer country.

December 7, 2012 - Bolivia began joining the Mercosur regional block of the South American countries. Ecuador also announced its desire to follow Bolivia to Mercosur .

The planned entry of the Andean Community member countries into MERCOSUR as full members will entail the cessation of the Andean Community of Nations as a separate trade block.

• Union of South American Nations
• Mercosur
• Bolivarian Alliance for the Peoples of Our America

• Andean Community Official Website (Spanish )