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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 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 Southern Common Market (MERCOSUL); 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.Available with paid subscription only.
'Trade in Goods' - a Customs Union is partially in place, in that trade in goods among member countries is now deregulated and a common external tariff covers imports from non-member countries. Current efforts aim at perfecting the enlarged market in line with ensuring transparent and proper operation of customs instruments, technical and health provisions and provisions on origin and competition.
'Deregulation of Trade in Services' - general framework on deregulation principles and provisions, approved by Decision 439 of CAN Council, 11 June 1998, is to be accomplished by 2005 through progressive elimination of restrictive measures affecting national treatment and access to the market. Advances in specific sectors include approval of provisions for transportation, telecommunications and tourism, while Decisions on financial services, recognition of professional degrees and authorization and licences to provide services in the sub-region are in the pipeline.
'Foreign Relations' - strategy of open regionalism has led to: signature of a framework agreement for the creation of a free trade zone with MERCOSUR, Apr 1998; signature of an economic complementation agreement with Brazil, Aug 1999, and with Argentina, as first steps towards creation of a free trade zone; setting up of Trade and Investment Council - also referred to as 'Council on Trade and Investment' and as 'Council on Trade Relations between the Andean Community and the United States' - 30 Oct 1998, Washington DC (USA); a '4-pillar' relationship with the European Union, covering political dialogue, preferential access to the European market (Drug GSP), the Framework Cooperation Agreement and specialized dialogue on war against drugs; other international relationships, including negotiating as a single voice on the proposed Free Trade Area of the Americas (FTAA) and exploring closer relations, including possible trade relations, with Russia.
'Social Agenda' - Andean presidential summit, 1999, Cartagena de Indias (Colombia) agreed to carry out a multidimensional social agenda to make the Community more aware of citizens' expectations, centering on creation of jobs, education, health and housing. The agenda incorporates the basis for policies on migration, on protecting basic rights of workers, on safeguarding and promoting the Andean identity (educational, cultural, scientific and technological policy) and an Andean strategy on sustainable development.
'Common Market' - A free-trade zone was established, 1 Jan 1992, following signature of the Caracas Declaration, 18 May 1991, by Presidents of the 5 Andean countries. Community countries are committed to establishing the Andean Common Market (ANCOM) by 2005 at latest. Having deregulated trade in goods and set in motion liberalization of trade in services, current efforts focus on free circulation of capital and persons. A draft protocol to the Cartagena Agreement so as to establish the Common Market is being considered by member countries.
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Relations with Inter-Governmental Organizations
Relations with 14 inter-governmental organizations.
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Members in 4 countries
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- Intergovernmental Communities
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