Andean Community of Nations
Encyclopedia
The Andean Community is a customs union comprising the South America
n countries of Bolivia
, Colombia
, Ecuador
and Peru
. The trade bloc was called the Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in 1969. Its headquarters are located in Lima
, Peru
.
The Andean Community has 98 million inhabitants living in an area of 4,700,000 square kilometers, whose Gross Domestic Product
amounted to US$745.3 billion in 2005, including Venezuela, (who was a member at that time). It's estimated GDP PPP for 2011 amounts to US$902.86 billion, excluding Venezuela.
Recently, with the new cooperation agreement with Mercosur
, the Andean Community gained four new associate members: Argentina, Brazil, Paraguay and Uruguay. These four Mercosur members were granted associate membership by the Andean Council of Foreign Ministers meeting in an enlarged session with the Commission (of the Andean Community) on July 7, 2005. This moves reciprocates the actions of Mercosur which granted associate membership to all the Andean Community nations by virtue of the Economic Complementarity Agreements (Free Trade agreements) signed between the CAN and individual Mercosur members.
comprise the two main trading blocs of South America. In 1999, these organizations began negotiating a merger with a view to creating a "South American Free Trade Area" (SAFTA). On December 8, 2004 the Andean Community (CAN) signed a cooperation agreement with Mercosur and they published a joint letter of intention for future negotiations towards integrating all of South America in a Union of South American Nations (USAN), patterned after the European Union
. It was formally established by the May 23, 2008, Constitutive Treaty of the USAN
signed in Brasília
.
During 2005, Venezuela decided to join Mercosur. Venezuela's official position first appeared to be that, by joining Mercosur, further steps could be taken towards integrating both trade blocs. CAN Secretary General Allan Wagner stated that the Venezuelan Foreign Minister Alí Rodríguez
had declared that Venezuela did not intend to leave the CAN, and its simultaneous membership to both blocs marked the beginning of their integration.
However some analysts interpreted that Venezuela might eventually leave the CAN in the process. This prediction seems to have been finally verified in April 2006, with Venezuelan President Chávez's announcement of his country's withdrawal from the Andean Community after stating that, as Colombia and Peru have signed free trade agreements (FTAs) with the United States, the Community is "dead". Officials in Colombia and Peru have expressed their disagreement with this view, as did representatives from Venezuela's industrial sector (Conindustria).
Despite this announcement, Venezuela has yet to formally complete all the necessary withdrawal procedures. According to Venezuela's Commerce Minister María Cristina Iglesias, the entire process will take up to five years. Until then, Venezuela and its partners remain bound by the effects of the community's preexisting commercial agreements.
During a visit to Colombia in August 2007, President Hugo Chávez said that he has agreed to rejoin the Andean Community of Nations after the presidents of Ecuador and Bolivia asked him to do so. Recently, relations between Mercosur and Venezuela have weakened since Mercosur does not agree with some of his proposals.
In addition to CAN, Bolivia is also a member of the WTO, UNASUR and ALBA. Its attitude is considered crucial to relations between UNASUR and ALBA specifically, says Marion Hörmann, since Bolivia is traditionally seen as a mediator between the Andean countries and the rest of South America.
Visitors to Venezuela will have to present their passports; they will then receive the Andean Migration Card (Tarjeta Andina de Migración), in which the time of temporary residence in the country is stated.
was created in June 2001 pursuant to Decisión 504. This stipulates the issuing of a passport
based on a standard model which contains harmonised features of nomenclature and security. The passport is effective in Ecuador, Peru, Venezuela, Bolivia, and Colombia (Bolivia and Colombia since early 2006).
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
n countries of Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, Ecuador
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
and Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. The trade bloc was called the Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in 1969. Its headquarters are located in Lima
Lima
Lima is the capital and the largest city of Peru. It is located in the valleys of the Chillón, Rímac and Lurín rivers, in the central part of the country, on a desert coast overlooking the Pacific Ocean. Together with the seaport of Callao, it forms a contiguous urban area known as the Lima...
, Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
.
The Andean Community has 98 million inhabitants living in an area of 4,700,000 square kilometers, whose Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
amounted to US$745.3 billion in 2005, including Venezuela, (who was a member at that time). It's estimated GDP PPP for 2011 amounts to US$902.86 billion, excluding Venezuela.
Membership
The original Andean Pact was founded in 1969 by Bolivia, Chile, Colombia, Ecuador and Peru. In 1973, the pact gained its sixth member, Venezuela. In 1976, however, its membership was again reduced to five when Chile withdrew. Venezuela announced its withdrawal in 2006, reducing the Andean Community to four member states.Recently, with the new cooperation agreement with Mercosur
Mercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
, the Andean Community gained four new associate members: Argentina, Brazil, Paraguay and Uruguay. These four Mercosur members were granted associate membership by the Andean Council of Foreign Ministers meeting in an enlarged session with the Commission (of the Andean Community) on July 7, 2005. This moves reciprocates the actions of Mercosur which granted associate membership to all the Andean Community nations by virtue of the Economic Complementarity Agreements (Free Trade agreements) signed between the CAN and individual Mercosur members.
- Current members:
- Associate members:
- Observer countries:
- Former full members:
-
Venezuela (1973–2006), in the process of joining MercosurMercosurMercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,... -
Chile (full member 1969-1976, observer 1976-2006, associate member since 2006, stated intentions of rejoining)
-
Relationship with other organizations
The Andean Community and MercosurMercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
comprise the two main trading blocs of South America. In 1999, these organizations began negotiating a merger with a view to creating a "South American Free Trade Area" (SAFTA). On December 8, 2004 the Andean Community (CAN) signed a cooperation agreement with Mercosur and they published a joint letter of intention for future negotiations towards integrating all of South America in a Union of South American Nations (USAN), patterned after the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. It was formally established by the May 23, 2008, Constitutive Treaty of the USAN
Constitutive Treaty
The Constitutive Treaty of the Union of South American Nations was signed on May 23, 2008 during the Third Summit of Heads of State and Government held in Brasília, Brazil...
signed in Brasília
Brasília
Brasília is the capital city of Brazil. The name is commonly spelled Brasilia in English. The city and its District are located in the Central-West region of the country, along a plateau known as Planalto Central. It has a population of about 2,557,000 as of the 2008 IBGE estimate, making it the...
.
During 2005, Venezuela decided to join Mercosur. Venezuela's official position first appeared to be that, by joining Mercosur, further steps could be taken towards integrating both trade blocs. CAN Secretary General Allan Wagner stated that the Venezuelan Foreign Minister Alí Rodríguez
Alí Rodríguez
Alí Rodríguez Araque is a Venezuelan politician, lawyer, and diplomat.- Biography :He is the leader of the party Patria Para Todos and has occupied various positions in the government of President Hugo Chávez, such as oil advisor, General Secretary of OPEC, President of Petróleos de Venezuela ,...
had declared that Venezuela did not intend to leave the CAN, and its simultaneous membership to both blocs marked the beginning of their integration.
However some analysts interpreted that Venezuela might eventually leave the CAN in the process. This prediction seems to have been finally verified in April 2006, with Venezuelan President Chávez's announcement of his country's withdrawal from the Andean Community after stating that, as Colombia and Peru have signed free trade agreements (FTAs) with the United States, the Community is "dead". Officials in Colombia and Peru have expressed their disagreement with this view, as did representatives from Venezuela's industrial sector (Conindustria).
Despite this announcement, Venezuela has yet to formally complete all the necessary withdrawal procedures. According to Venezuela's Commerce Minister María Cristina Iglesias, the entire process will take up to five years. Until then, Venezuela and its partners remain bound by the effects of the community's preexisting commercial agreements.
During a visit to Colombia in August 2007, President Hugo Chávez said that he has agreed to rejoin the Andean Community of Nations after the presidents of Ecuador and Bolivia asked him to do so. Recently, relations between Mercosur and Venezuela have weakened since Mercosur does not agree with some of his proposals.
In addition to CAN, Bolivia is also a member of the WTO, UNASUR and ALBA. Its attitude is considered crucial to relations between UNASUR and ALBA specifically, says Marion Hörmann, since Bolivia is traditionally seen as a mediator between the Andean countries and the rest of South America.
History
- The groundwork for the Community was established in 1969 in the Cartagena Agreement.
- In 1973 Venezuela joins Andean Pact.
- In 1976, Augusto PinochetAugusto PinochetAugusto José Ramón Pinochet Ugarte, more commonly known as Augusto Pinochet , was a Chilean army general and dictator who assumed power in a coup d'état on 11 September 1973...
withdrew ChileChileChile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
from the Andean Community claiming economic incompatibilities. - In 1979, the treaty creating the Court of Justice was signed and the Andean Parliament created and the Andean Council of Foreign Ministers were created.
- In 1983, the treaty creating the Court of Justice entered into effect.
- In 1991, the presidents approved the open skies policy and agree to intensify integration.
- In 1992, Peru temporarily suspended its obligations under the Liberalization Program.
- In 1993, the Free Trade Zone entered into full operation for Bolivia, Colombia, Ecuador and Venezuela.
- In 1994, the Common External Tariff was approved.
- In 1996, the Cartagena Agreement Commission approved the regulatory context for the establishment, operation, and exploitation of the Simón Bolívar Satellite System.
- In 1997, an agreement was reached for Peru's gradual incorporation into the Andean Free Trade Zone.
- In 1998, the Framework Agreement for the creation of a Free Trade Area between the Andean Community and the MercosurMercosurMercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
was signed in Buenos AiresBuenos AiresBuenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
. - In 2000, a meeting of the South American Presidents, at which the Andean Community Heads of State and Mercosur decide to launch negotiations for establishing a free trade area between the two blocs as rapidly as possible and by January 2002 at the latest.
- In August 2003, the Andean Community and Mercosur Foreign Ministers, during a meeting in MontevideoMontevideoMontevideo is the largest city, the capital, and the chief port of Uruguay. The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento...
at which the CAN delivered a working proposal containing guidelines for the negotiation, reaffirmed their governments' political determination to move ahead with the negotiation of a free trade agreement between the two blocs. - In April 2006 President Hugo ChávezHugo ChávezHugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
announced that VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
would withdraw from the Andean Community, claiming the FTA agreements signed by ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
and PeruPeruPeru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
with the USA caused irreparable damage to the community. - In October 2011, MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, PanamaPanamaPanama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, the Sahrawi Arab Democratic RepublicSahrawi Arab Democratic RepublicThe Sahrawi Arab Democratic Republic is a partially recognised state that claims sovereignty over the entire territory of Western Sahara, a former Spanish colony. SADR was proclaimed by the Polisario Front on February 27, 1976, in Bir Lehlu, Western Sahara. The SADR government controls about...
and SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
joined the Andean Parliament as permanent observer members.
Organization
- Andean Presidential Council
- Andean Foreign Relations Ministers Council
- Commission
- Headquarters (LimaLimaLima is the capital and the largest city of Peru. It is located in the valleys of the Chillón, Rímac and Lurín rivers, in the central part of the country, on a desert coast overlooking the Pacific Ocean. Together with the seaport of Callao, it forms a contiguous urban area known as the Lima...
, PeruPeruPeru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
) - Andean Court of Justice
- Andean Parliament (BogotáBogotáBogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...
, ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
) - Latin American Reserve Fund
- Simón Bolívar Andean University
Secretaries-General
- Sebastián Alegrett (VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
) 1997–2002 - Guillermo Fernández de SotoGuillermo Fernández de SotoGuillermo Roque Fernández de Soto Valderrama is a Colombian lawyer and diplomat, who has served as Secretary General of the Andean Community of Nations, Minister of Foreign Affairs of Colombia, and Ambassador of Colombia to the Kingdom of the Netherlands....
(ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
) 2002–2004 - Edward Allan Wagner Tizón (PeruPeruPeru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
) 2004–2006 - Alfredo Fuentes HernándezAlfredo Fuentes HernándezAlfredo Fuentes Hernández is a Colombian diplomat, lawyer and economist. As the Director General for Legal Affairs, he became the interim Secretary General of the Andean Community of Nations in August 2006, after Allan Wagner Tizón's resignation...
(ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
), interim 2006–2007 - Freddy Ehlers Zurita (EcuadorEcuadorEcuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
), 2007–2010
Free flow of people
From January 1, 2005, the citizens of the member countries can enter the other Andean Community member states without the requirement of visa. The passengers should present the authorities their national ID cards.Visitors to Venezuela will have to present their passports; they will then receive the Andean Migration Card (Tarjeta Andina de Migración), in which the time of temporary residence in the country is stated.
Andean passport
The Andean passportAndean passport
The Andean passport is a passport for those South American countries that are members of the Andean Community of Nations .-Origin and use:The Andean passport was created in June 2001 pursuant to ACN Decisión 504...
was created in June 2001 pursuant to Decisión 504. This stipulates the issuing of a passport
Passport
A passport is a document, issued by a national government, which certifies, for the purpose of international travel, the identity and nationality of its holder. The elements of identity are name, date of birth, sex, and place of birth....
based on a standard model which contains harmonised features of nomenclature and security. The passport is effective in Ecuador, Peru, Venezuela, Bolivia, and Colombia (Bolivia and Colombia since early 2006).
See also
- Central American Common Market
- Customs UnionCustoms unionA customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
- Free Trade Area of the AmericasFree Trade Area of the AmericasThe Free Trade Area of the Americas , , ) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba. In the last round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal...
- MercosurMercosurMercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
- Trade blocTrade blocA trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, are reduced or eliminated among the participating states.-Description:...
- Union of South American Nations
External links
- Andean Community official webpage
- BBC - S America launches trading bloc
- News of CAN
- Andean Community and Mercosur
- Andean Community membership
- The Council on Hemispheric Affairs An Independent Source of Latin American News and Opinion
- A U.S.-Colombia Free Trade Agreement: Strengthening Democracy and Progress in Latin America
- Tensions Rise Over Andean Election by Nathaniel Kenninger, Indiana Daily, June 17, 2009