We, the undersigned Presidents, have made a review of the achievements and challenges of the integration process during the past year, and have defined the lines of action for upgrading and intensify them in the following crucial topics of the new strategic design. Therefore, we agree on the following:

1. To entrust the Andean Council of Foreign Affairs Ministers that, considering the topics identified in the first meeting of South American Foreign Affairs Ministers in Brasilia, with advancing in the preparation of an agenda within the framework of the second meeting to be held in Guayaquil on August 1 and 2, 2005, within the perspective of establishing the South American Community of Nations.

2. To entrust the Andean Council of Foreign Affairs Minister with carrying out the diplomatic formalities leading to the launching of the negotiations for a Partnership Agreement between the Andean Community and the European Community that includes a free trade zone, on the occasion of the Fourth Summit of the European Union, Latin American and Caribbean Chiefs of State and Government to be held in Vienna in May 2006.

3. To instruct the Andean Community Commission and General Secretariat to make all the necessary efforts for the satisfactory completion during the course of this year, of the joint valuation process of the regional economic integration between the Andean Community and the European Union.

4. To instruct the Andean Council of Foreign Affairs Ministers to examine the most adequate instruments for intensifying the relations that are being developed with Mexico, Russia, China, India and Japan, and to commence community relations with Korea and Ukraine.

5. To entrust the General Secretariat of the Andean Community with preparing a program to be considered at the next Meeting of the Andean Council of Foreign Affairs Ministers that will be held in New York in September 2005, and which should be aimed at strengthening democracy, participation and the rule of law in the Andean subregion. Such program can encourage studies on political and social processes in the Andean countries, support mechanisms promoting citizenship participation, dialog and concordance, as well as strengthening the democratic institutional system, and should foster the exchange of information between Andean academicians and scholars on these processes. On this subject, the General Secretariat will continue collaborating with the Member Countries that have so requested it, without this implying new financial contributions of the Member Countries.

6. To instruct the Andean Council of Foreign Affairs Ministers to advance, within the framework of the Common Foreign Security Policy, the progressive implementation of the directives of the Declaration of San Francisco de Quito on the Establishment and Development of an Andean Peace Zone by developing a standardized methodology for the formulation of national White Papers on defense matters, the gradual regionalization of confidence building measures and the strengthening of the legal frameworks of police and judicial cooperation in the Subregion.

7. To instruct the Executive Committee of the Andean Cooperation Plan against Illicit Drugs and Related Crimes, with the support of the General Secretariat, to design and implement a Work Program for the local, national and international dissemination and execution of the Andean Alternative Development Strategy.

8. To urge the Andean Council of Foreign Affairs Ministers and the aforementioned Executive Committee to give impulse to the actions tending to establish formulas for mitigating the growing consumption of synthetic drugs in our countries. Likewise, to put into effect, within the framework of the National and Andean Drug Observatories, appropriate tools for measuring our efforts in the fight against this adversity.

9. To request the Andean Development Corporation to develop financial mechanisms, within its business management programs, for facilitating the Andean comprehensive and sustainable Alternative Development Strategy, taking into account the fight against poverty and social exclusion in areas identified for intervention.

10. To urge the pertinent bodies to continue advancing in the creation or strengthening of the Financial Information and Analysis Units for improving the capacities of the region in the fight against the laundering of assets.

11. To reiterate to the Executive Committee of the Common Foreign Policy that, complying with Decision 587, it has been commissioned with presenting the Andean Cooperation Plan against Terrorism, which will be considered by the Andean Council of Foreign Affairs Ministers on the occasion of the next Ordinary Meeting of the Andean Council of Presidents. Such Plan should include, among other elements, subregional cooperation, the exchange of information, and legal mutual assistance for preventing the international circulation of terrorists and ensuring the processing of anyone participating in the planning, financing or perpetration of terrorism acts.

12. To instruct the pertinent authorities to give impulse to the application of the Andean Plan for the Prevention, Fight and Eradication of Illicit Traffic of Small and Light Firearms in all its aspects –Decision 552- and the corresponding actions, agreed to in the Declaration of Bogota adopted in the First Conference for the Review of the Inter-American Convention against the Manufacture and Illicit Traffic of Firearms, Ammunitions, Explosives and Other Related Materials (CIFTA), held in March 2004.

13. To entrust the Andean Council of Foreign Affairs Ministers with adopting as soon as possible, with the technical support of the state authorities in the Member Countries commissioned with the fight against corruption, and the General Secretariat, and the advice of the Andean Labor Consulting Council and the Andean Business Consulting Council, the Andean Plan for the Fight against Corruption taking into account the contributions of the Member Countries and the studies, consultations and meetings conducted on the matter.

14. To instruct the General Secretariat to inform based on the reports of the Member Countries on the progress made with respect to the "Work Program for the Dissemination and Execution of the Andean Chart for the Promotion and Protection of Human Rights", Decision 586, and to collaborate with the Member Countries in its implementation.

15. To encourage the Andean Council of Social Development Ministers to develop the indispensable inter- institutional and subregional coordination for ensuring the comprehensive character of the Integrated Social Development Plan (PIDS) and the community scope of its projects, with a view to the gradual convergence of the social policies of the Member Countries and the definition of a social cohesion community strategy.

16. To commission the General Secretariat and the Andean Development Corporation (CAF) to study, with full participation of the competent national entities and based on the priorities indicated in the PIDS, the creation of a financial instrument making possible the mobilization of resources for promoting social cohesion and territorial development in the Andean Community countries.

17. To instruct the Andean Advisory Council of Labor Ministers to organize with the participation of the General Secretariat, the International Labor Organization (ILO) and other Ministries associated with such matter, the Second Andean Conference on Employment.

18. To instruct the Andean Advisory Council of Labor Ministers to complete in the shortest possible term the technical coordination allowing the formulation of the proposals for the Regulations of the Andean Instruments of Labor Migration and Social Security.

19. To urge the Andean Council of Education Ministers and the governmental authorities responsible for the cultural policies to execute Decision 594, as soon as possible, with the support of the Andean University Simón Bolívar and the Andrés Bello Convention and the United Nations Organization for Education, Science and Culture (UNESCO), for introducing integration issues in the basic education study plans in the Member Countries; and continue studying the subregional recognition of degrees granted by the Simón Bolívar University.

20. To instruct the Andean Council of Foreign Affairs Ministers to promote, with the support of the General Secretariat, the adoption by the 33th General Conference of the UNESCO, to be held in Paris in October 2005, of the proposal of the Convention on Protection and Promotion of Diversity of Cultural Expressions.

21. To urge the Andean Council of Foreign Affairs Ministers to prepare, with the support of the Andrés Bello Convention and the General Secretariat, a strategy for the development of the cultural industries of the subregion, and the consolidation of the Andean integration and cultural identity.

22. To instruct the Andean Health Organization – Hipólito Unanue to promote, together with other competent national organizations, the commencement of joint negotiations for reducing prices and improving the access to medicines, and specially for malaria patients.

23. To commission the Andean Council of Social Development Ministers to call a meeting with other social area Ministers to exchange excellence experiences in the application of social policies in our countries. Such meeting will be held this year in Caracas, Venezuela.

24. Thanking the interest shown by the Government of the Bolivarian Republic of Venezuela for transmitting its experiences on social and cooperation program matters, to entrust the technical institutionality of the Andean Community with receiving and analyzing the pertinent information, particularly with respect to Mission programs, and the PetroAndina, TeleSur, Banco del Sur and Universidad del Sur initiatives.

25. To urge the Commission to make its best efforts, with the support of the General Secretariat, in executing and following up the Work Program for the Intensification of the Andean Commercial Integration approved in the 90th Period of Ordinary Sessions of the Commission, for which purpose a High Level Ad Hoc Group will be set up.

26. To entrust the Pro Tempore Secretariat with promoting and organizing high level analysis forums with the support of the General Secretariat of the Andean Community, for generating feasible strategic proposals on topics of common interest for our countries, including the experiences of the Member Countries, in order to face the new strengthening stage of the Andean Community, the results of which will be considered in a meeting of the Andean Council of Foreign Affairs Ministers to be held in December this year.

27. With a view to advancing and intensifying integration, to instruct the Commission to continue with the necessary actions for adopting an Andean Community common tariff policy by no later than December 2, 2005, based on the guidelines and the work schedule of the High Level Ad Hoc Group established in Decision 620. The Andean Council of Presidents will decide on this important matter with flexibility criteria, in a Special Meeting of Presidents in the first two weeks of December 2005, to be jointly held with the Andean Council of Foreign Affairs Ministers in an extended meeting with the Andean Community Commission.

28. To instruct the General Secretariat of the Andean Community to prepare, with the support of the institutions of the Andean Integration System and the international cooperation organizations, a proposal to be presented to the Commission for establishing a Subregional Special Support Fund for improving the production and competitiveness of Bolivia and Ecuador and intensifying their participation in the integration processes of the Andean Community.

29. To entrust the Commission with the execution of an Andean Program on Promotion and Development of Exports, Investment and Tourism, with the support of the General Secretariat and in coordination with the Andean Committees for Export and Tourism Promotion, the investment promotion organizations and the technical and the financial support of the CAF. In the case of Bolivia, to instruct that special support is offered for strengthening its national export promotion and investment entity.

30. To instruct the Commission to examine, within the scope of its competence and taking into account the provisions in Decision 598, the most adequate instruments for intensifying the relations that are presently being developed with third countries.

31. To instruct the Andean Council of Foreign Affairs Ministers and the High Level Work Group for Border Integration and Development (GANIDF) to give the highest priority and to complete in the shortest term, with the support of the General Secretariat of the Andean Community and the participation of the Economy, Finance and Treasury Ministers of the Member Countries, the design and approval of the draft Decisions on "Uniform Regime for Andean Multinational Integration and Border Development Corporations" (COMAF) and "Public and Civil Society Projects in the Border Integration Zones of the Andean Community"

32. To instruct the General Secretariat to propose, in coordination with the Andean Consulting Council of Municipal Authorities, an Andean territorial development strategy and the implementation of a cooperation agenda between the participating cities.

33. To urge the Member Countries to complete the work tending to adopt new Andean Regulations for Medium and Small Companies (PYMES) and the creation of an Andean System of Guarantees, as well as measures for promoting the sustainable development of micro, small and medium enterprises.

34. To instruct the Council of Ministers of Agriculture to implement a cooperation program between national animal and vegetable sanitation entities for facilitating the intrasubregional trade of mixed farming sector products.

35. To instruct the Member Countries to coordinate actions in the negotiations of the Doha Round for eliminating the agricultural subsidies of developed countries affecting the competition and access conditions of our products to such markets.

36. To entrust the Council of Environment and Sustainable Development Ministers with defining an Andean strategy on climate change and preparing an Andean joint position that will be presented to the Conference of the Parties to the United Nations Framework Convention on Climatic Change.

37. To instruct the Council of Foreign Affairs Ministers, the Commission and the Council of Environment Ministers to adopt the necessary actions for protecting the genetic resources and the traditional knowledge of the native peoples.

38. To entrust the Council and the Commission with establishing a work group in coordination with the environment authorities of each country and under the coordination of the General Secretariat, for identifying community policies and regulations for the comprehensive management of water resources, for preparing common positions in the pertinent international forums and for following up the preservation levels of the water resources.

39. To entrust the Council of Energy, Electricity, Hydrocarbon and Mining Ministers of the Andean Community with executing the necessary actions for intensifying and consolidating the energy integration, with a view to ensuring the regional energy supply as means for the progressive reduction of poverty and to granting priority to the implementation of the general guidelines adopted in the World Summit in Bonn.

40. To request the CAF to support the Program for strengthening the energy clusters of the Andean countries and entrust the General Secretariat with advancing the necessary formalities for continuing with the second phase of this Program.

41. To commission the Ministers and other competent organizations of the Member Countries to adopt the necessary actions for creating specific Executive Units or strengthening the existing ones, responsible for coordinating among them the implementation of the Binational Border Attention Centers (CEBAF) and border facilitation of road transport, for obtaining and implementing integral solutions to border passage problems.

42. To urge the Andean Committee of Water Transport Authorities (CAATA), the General Secretariat and the Andean Community Commission to prepare and adopt community regulations on Andean maritime coastal shipping.

43. To instruct the competent authorities of the Member Countries to continue promoting a community legislation on different aspects of the aeronautic activity, in accordance with the integration process.

44. To instruct the Andean Council of Foreign Affairs Ministers to coordinate, with the support of the General Secretariat and the Andean organizations associated with the topic, a common position for the Information Society World Summit to be held in Tunisia in November 2005 for reducing the digital gap and fulfilling the goals of the Millennium Declaration,

45. To entrust the Council and the Commission with continuing to upgrade and strengthen, with the support of the General Secretariat and the Andean Court of Justice, the Andean system for the solution of controversies, through a broad dissemination of the law and the community procedures and for insuring the methodology for the prevention of default events.