1996-03-09 Trujillo Peru
9-10 Mar 1996, Trujillo (Peru), by the Acta de Trujillo, during 8th Congress of the Andean Presidential Council. Commenced operations on 1 Aug 1997, with General Secretariat headquarters in Lima (Peru), and is sometimes referred to as the Andean Community of Nations (ACN). Establishment followed a history of Andean cooperation, formalized in the T-XT6969 - Andean Subregional Integration Agreement (Cartagena Agreement), signed 26 May 1969, Bogota (Colombia), by representatives of Bolivia, Chile, Colombia, Ecuador and Peru. The Agreement aimed to establish a customs union within a period of 10 years. Although actually signed in Bogota, the Cartagena Agreement is officially named in honour of the city where the conclusive negotiations took place. The Cartagena Agreement is often referred to as 'Andean Pact -- Pacte andin -- Pacto Andino', and the nations signatory to it as Andean Group -- Groupe andin -- Grupo Andino. The Cartagena Agreement came into force in Oct 1969. Venezuela acceded to the Agreement in Feb 1973. Chile withdrew in Oct 1976.
The basically closed conception of inward-looking integration based on the import substitution model gradually gave way to a scheme of open regionalism: Protocol of Quito, adopted 12 May 1987, Quito, came into effect 25 May 1988, adjusted principal policies, instruments and mechanisms to prevailing conditions and allowed greater freedom for countries to establish their own rules on foreign investment; objectives and instruments were extended to economic and social cooperation. Declaration of Caracas, Feb 1989, marked an agreement of the Andean Presidents to promote and deepen subregional integration by taking over direct leadership of the process. The Community is the result of the progress of integration and emergence of new challenges stemming from global economic change which gave rise to a need for both institutional and policy reforms in the Cartagena Agreement, accomplished through Protocols of Trujillo and Sucre respectively. While the Community was set up through institutional reforms, policy reforms extended the scope of integration beyond purely trade and economic areas. The Council of Presidents and the Council of Foreign Ministers were formally established under the Act as new policy-making and membership bodies and the legislative role of the Commission of the Andean Community, originally comprising the trade ministers, was broadened by including ministers of other sectors. Expected to merge with F-XF9180 - Southern Common Market; complete integration expected by Summit, Colombia, Dec 2007.
Promote balanced and harmonious development of member countries under equitable conditions; accelerate their growth through integration and economic and social development; enhance participation in the regional integration process with a view to progressive formation of a Latin American common market; strive for a steady improvement in living conditions of member countries' inhabitants.
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The Community is a subregional organization with international legal status, comprising Bolivia, Colombia, Ecuador, Peru and Venezuela and the bodies and institutions of the F-XF4919 - Sistema Andino de Integración (SAI).
- K-XE4200 - Andean Presidential Council (meets annually plus special sessions as necessary), is the highest-level body of the Andean Integration System and comprises Presidents of the member countries. It is responsible for issuing guidelines on different spheres of Andean subregional integration, which are then implemented by the bodies and institutions of the System in accordance with the spheres of responsibility and mechanisms established in their respective treaties and instruments. It also: defines subregional integration policy; orients and promotes actions on matters of interest to the subregion; evaluates the course and results of the integration process; examines all issues and matters connected with the progress of integration and its relations with the world; and considers and makes pronouncements on reports and recommendations put forward by other organs and institutions of the SAI. The Council's Chairmanship rotates annually among members, the Chairman representing the Andean Community at the highest political level.
- E-XE3582 - Andean Council of Foreign Ministers, the political leadership body, consists of the Ministers of Foreign Affairs of member countries. It ensures that the objectives of Andean subregional integration are attained and makes and carries out the Andean Community's foreign policy. The Council: signs conventions and agreements on global foreign policy and cooperation issues with third countries or groups of countries and with international organizations; coordinates the joint position of member countries in international fora and negotiations on matters within its sphere of responsibility. It expresses its will through 'Declarations' (statements that are non-binding) and 'Decisions' (legally binding and governed by the Charter the Court of Justice of the Cartagena Agreement); both must be adopted by consensus.
- E-XE3583 - Commission of the Andean Community, the main policy-making body, consists of a plenipotentiary representative from each member country of the Andean Community. It shares its legislative role, expressed through the adoption of Decisions, with the Andean Council of Foreign Ministers. The Commission makes, implements and evaluates Andean subregional integration policy in the areas of trade and investment; adopts the necessary measures for attaining the objectives of the Cartagena Agreement and for implementing the Guidelines of the Andean Presidential Council; and coordinates the joint position of member countries in international fora and negotiations within its area of responsibility.
- General Secretariat of the Andean Community -- Secrétariat général de la Communauté andine -- Secretaria General de la Comunidad Andina, is the executive body and is headed by the Secretary General of the Andean Community. It commenced operations on 1 Aug 1997, taking on, among other tasks, the functions of the Board of the Cartagena Agreement. It has the power to draw up Draft Decisions and propose them to the Andean Council of Foreign Ministers and to the Commission and to pass on initiatives and suggestions to the Council of Foreign Ministers meeting in enlarged session so as to contribute to or hasten compliance with the Cartagena Agreement. Other functions: managing the subregional integration process; resolving issues submitted for its consideration; ensuring that Community commitments are fulfilled; maintaining on-going links with member countries and working relations with the executive bodies of other regional integration and cooperation organizations.
- F-XF9018 - Andean Parliament, established 25 Oct 1979, La Paz (Bolivia), is the joint deliberative body of the System, representing the peoples of the Andean Community. It puts forward draft provisions of common interest to the bodies of the System and promotes harmonization of member countries' legislation. Its recommendations about the integration process are adopted by a two-thirds majority.
- F-XF8363 - Court of Justice of the Andean Community was created as a principal organ of the Cartagena Agreement on signature of a treaty by member countries, 28 May 1979. It consists of 5 judges, one for each country, who assume the presidency in rotation. The Court interprets Andean Community law to ensure it is applied uniformly in the territories of member countries; and settles disputes that may arise in its application.
- F-XF0409 - Development Bank of Latin America (CAF), set up 7 Feb 1968, is a financial institution with Latin American and Caribbean shareholders. It aims to support the sustainable development of shareholder countries and of integration by efficiently raising funds for timely delivery of financial services.
- F-XF5466 - Latin American Reserve Fund, established in Jan 1977 as 'Andean Reserve Fund (ARF)', commenced operations in Jul 1978, and was restructured under present title in Mar 1991. It provides balance of payments assistance to member countries by granting credits or guaranteeing loans to third parties. It also helps harmonize Andean countries' exchange, monetary and financial policies and improves the terms of investment of international reserves made by them.
- F-XF4590 - Universidad Andina Simón Bolivar (UASB), set up 11-16 Dec 1985, La Paz, during 5th Session of the Andean Parliament.
- 'Social Agreements' - intergovernmental institutions created to complement integration efforts in the economic and trade sectors with action in other fields:
- -For health: F-XF5032 - Hipólito Unanue Agreement, formed 18 Dec 1971, includes annual sessions of S-XS0119 - Meeting of Ministers of Health in the Andean Region;
- -For social security: H-XF3552 - Convenio andino de seguridad social (CONASS);
- -For labour affairs: F-XF6904 - Simón Rodriguez Agreement, set up 22 Oct 1973, currently being revitalized.
- 'Advisory Institutions' These comprise top-level delegates chosen directly by representative organizations in the relevant sectors of each member country. They were set up, 26 Jul 1998, on approval of Decisions 441 and 442 by the Commission of the Andean Community -
- - K-XK1809 - Consejo Consultivo Empresarial Andino (CCEA);
- - K-XK1796 - Andean Labor Advisory Council.
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