In recent years, Latin America has experienced a remarkable economic transformation. One of the factors that most influenced this process was the creation of supranational entities, such as Mercosur, ALBA and the Pacific Alliance. In the context of supranational alliances, in 1980, the Montevideo Treaty was signed for the foundation of a new organization, ALADI. Its acronyms stand for Latin American Integration Association.
Historical background and data of interest
After the end of World War II, all Latin American nations were in need of promoting the export of their raw materials, such as coffee, cocoa, meat and corn.
Before its foundation, there were already similar organizations , such as the Latin American Free Trade Association (ALALC) created in the first Montevideo Treaty in 1960.
A common Latin American market
Thirteen countries make up ALADI: Brazil, Bolivia, Argentina, Ecuador, Chile, Cuba, Colombia, Mexico, Panama, Uruguay, Peru, Paraguay and Venezuela. Its aim is to promote a common market similar to the European Union .
The strategy is focused on two general aspects:
1) gradually reduce tariffs that affect products originating in member countries;
2) implement regional agreements of a global or bilateral nature;
The principles that inspire ALADI are projected on very diversified areas and sectors, such as financial cooperation, customs control, environmental preservation , tourism promotion and the unification of technical standards.
An aspect of vital strategic importance is the phasing out of all rules that hinder commercial exchange. In this line, services were put in place to make the transport of goods more efficient and operational. These measures aim to increase the export capacity of all member nations.
To promote a common market, certain regulatory norms related to foreign trade were implemented. In this context, there is a regulation on several subjects: related to packaging and labeling, quality standards, sanitary measures associated with the export of animals and vegetables, authorization of import licenses, minimum price regimes and measures to preserve the safety of people .
These and other standards form a new global framework for improving Latin America’s economy.