South American Community of Nations
The South American Community of Nations will be a continent-wide free trade zone that will unite two existing free-trade organizations—
Mercosur and the
Andean Community—eliminating tariffs for
non-sensitive products by 2014 and
sensitive products by 2019. The headquarters of this new organization will be in
Lima while the South American Bank will be in
Brasilia according to the agreements during the meetings. Complete integration between the
Andean Community and
Mercosur into the South American Community of Nations is expected by 2007.
Encyclopedia
The South American Community of Nations will be a continent-wide free trade zone that will unite two existing free-trade organizations—
Mercosur and the
Andean Community—eliminating tariffs for
non-sensitive products by 2014 and
sensitive products by 2019. The headquarters of this new organization will be in
Lima while the South American Bank will be in
Brasilia according to the agreements during the meetings. Complete integration between the
Andean Community and
Mercosur into the South American Community of Nations is expected by 2007.
Overview
At the
Third South American Summit, on 8 December 2004, presidents or representatives from twelve
South American nations signed the
Cuzco Declaration, a two-page statement of intent, announcing the foundation of the South American Community.
Panama attended the signing ceremony as an observer.
The leaders announced their intention to model the new community after the
European Union, including a common currency, parliament, and passport. According to Allan Wagner, Secretary General of the Andean Community, a complete union like that of the EU should be possible by 2019.
The mechanics of the new entity should come out at the First South American Community of Nations Heads of State Summit, to be held in
Brasilia, in September 29-30 2005. A constitution is also expected to be drafted in 2005. The Second Summit will be held in Bolivia. No new institutions will be created in the first phase, so as not to increase bureaucracy, and the community will use the existing institutions belonging to the previous trade blocs.
Origins
Simón Bolívar, directly responsible for the independence of
Venezuela,
Colombia,
Ecuador,
Peru,
Bolivia and
Panamá in the early years of the
19th century, and honored with statues in the capital cities of practically every
Spanish American nation had the goal of creating a
federation of
Spanish American nations to ensure prosperity and security after independence. Bolívar never achieved this goal, and died an unpopular figure because of his heavy-handed attempts to establish strong central governments in the nations he led to independence.
Participating nations
The 12 community members:
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¹:
...
²:
¹
These countries are also considered to be associate members of Mercosur²
These countries are also considered to be associate members of the Andean Community.³
Guyana and Suriname are currently members of CARICOM and entered its single market in 2006. It is unknown if simultaneous SACN and CARICOM membership would be possible to accomplish and most probably these states will remain SACN associate members only.The following
South American areas not participating:
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which is a country of the Kingdom of the Netherlands and therefore an
Overseas Country of the European UnionCurrent works in progress
The South American Community of Nations started plans of integration with the construction of the Interoceanic highway, a road that intends to unite
Peru with
Brazil by extending a highway through
Bolivia, giving that country a path to the sea, while Brazil would obtain access to the
Pacific Ocean and Peru to the
Atlantic Ocean.
Construction started in September 2005, financed 60% by Brazil and 40% by Peru. It is estimated to be done by 2009.
Comparison with other Regional blocs
Quotes
We are here to make Simón Bolívar's dream real. [...] Sooner, rather than later, we shall have a single currency, a single passport... Sooner, rather than later, we shall have a parliament with directly elected representatives for this new nation that we are creating today. — Peruvian President Alejandro Toledo, 8 December 2004.
Step by step CAN and Mercosur will converge becoming the South American Community, but gradually disappearing at the same time. But in spite of the haste there’s no rush, because we could end with an empty declaration. [...] My idea is that in a few months time CAN should be known as South American Community-CAN and Mercosur, South American Community MS, so we have time to get in touch with the new initials. —Former Argentine president Eduardo Duhalde, president of the Mercosur Representatives Committee.
Name change proposal
On December 28, 2005,
Chilean chancellor Ignacio Walker proposed that the name of the community be changed to South American Union ; nevertheless, many members stated to him that that proposal had already been rejected to prevent confusion related to its acronym .
See also
External links
