On the commemoration of the XXXV anniversary of the execution of the Cartagena Agreement, we wish to highlight the will of our nations to preserve the political dream of Andean integration, which has enabled us to respond to the challenges set out by a continuously changing world in these three and a half decades of community project.

We can assure that Andean integration has become a platform to be used by our societies for insertion in the international market and has developed a number of different cooperation actions in sectors such as subregional exchange, which has contributed to drive our exports to other markets, services, telecommunications, transport, infrastructure, tourism, energy, and financial and customs sectors, all of which will undoubtedly favor competitiveness in the subregion.

A joint cooperation in the various areas comprising the political, social and commercial fields, will contribute to promote the welfare of our people and, at the same time, will bring neighboring countries closer together towards the creation of a South American integration space.

We are aware that one of the challenges present in our fight against poverty is to overcome the high concentration of wealth and the need to ensure sustained growth of our economies and improve the living conditions of our people. In this context, we need to develop new policies, programs and projects designed to generate a better distribution of income and promote employment, improved access to education, health and food quality, and increased social benefits from integration, within a framework of sustainable development and social justice.

We wish to highlight the achievements made on Common Foreign Policy matters, thanks to the driving force of the Pro Tempore Secretariat of Ecuador and the support from the Member Countries and the General Secretariat, the most recent fruit of which has been the execution of the Economic Complementary Agreement with MERCOSUR which opens the possibility of creating a South American integration space.

Furthermore, we wish to celebrate the signing of the Political Dialogue and Cooperation Agreement with the European Union, this being the first step for the start of negotiations which will enable us to conclude an Association Agreement, including a free trade area; in addition, we wish to emphasize the results achieved at the III Summit of Heads of State and Government of the European Union, Latin America and the Caribbean, held in Guadalajara on May 28 and 29, 2004.

Being aware of an increase in migratory movement and the need to ensure full respect of their human rights, we undertake to promote the implementation of joint actions to provide shelter and protection for migrants and their families, promote their sustainable human development and fight against slave trade and migrant trade.

We welcome the adoption of the Declaration on the Establishment of an Andean Peace Area and the approval of the Guidelines for the Andean Common Policy on External Security. In addition, we recognize the importance of examining the role played by the region in the search for peace and security within the emerging international setting.

We see with great satisfaction that progress has been made in the implementation of the Andean Cooperation Plan for Fighting against Illicit Drugs and Associated Crimes, and the Andean Plan for Prevention, Fight and Eradication of Illegal Small and Lightweight Arms Traffic.

We wish to reaffirm our commitment in the fight against corruption, seen as a scourge that threatens democracy and democratic governance, weakens the institutions, jeopardizes economic and social development and the fight against poverty, undermines the citizens confidence and affects political stability. In this context, in accordance with international and national legislation in force, we undertake to promote the necessary actions so that any officers, at all public administration levels, as well as any persons in the private sector, who have committed acts of corruption, will appear before the pertinent authorities of the country where the crimes were committed in order to be tried by the competent courts.

We welcome the approval of the Program for diffusion and implementation of the Andean Charter for Promotion and Protection of Human Rights.

We wish to express our satisfaction for the creation of the Andean Council of Ministers of the Environment and urge such entity to start a process aimed at promoting coordination of positions in multilateral and regional trade negotiations on the search for mechanisms to provide mutual support between trade and the environment.

We welcome the creation of the Andean Council of Social Development Ministers and urge this entity to meet as soon as possible in order to examine the Preliminary Draft of the Comprehensive Social Development Plan, so that it may be approved in the next meeting of the Andean Council of Foreign Affairs Ministers.

In that regard, it is necessary that an analysis be made by the Advisory Council of Labor Ministers, in coordination with the Andean Committee of Migration Authorities, of the migration problem inside the subregion, in order to include it, if deemed pertinent, in the Comprehensive Social Development Plan.

We are aware of the important role played by the Health Ministers of the Member Countries within the framework of the Andean Health Organization - Hipólito Unanue Agreement, which includes top priority matters for the social development of our nations, such as a significant price reduction in antiretroviral drugs. At the same time, we welcome the agreements included in the Resolution REMSAA XXV/396 “Access to Medicaments: Towards a Joint Policy” approved by the Health Ministers of the Andean Region, as well as the terms of reference of the Project “Control of Malaria in Border Areas”, funded by the World Fund for Fighting Against AIDS, Tuberculosis and Malaria within the scope of the Andean Health Plan in Border Areas (PASAFRO), and the decision to create a subregional epidemiology control mechanism.

We applaud the approval of the Work Plan to incorporate the integration subject in school educational programs and contents of the Andean Community Member Countries.

We welcome the creation of the Andean Council of Ministers of Education and those Responsible for Cultural Policies, as an instant result of the progress achieved in the implementation of the new Interinstitutional Cooperation Agreement between the General Secretariat of the Andean Community and the Executive Secretariat of the Andrés Bello Agreement, signed in August 2003.

We wish to highlight the importance of strengthening the joint integration and cooperation efforts of the Member Countries in the fields of education, culture, science and technology, aimed at preserving Andean cultural identity, promoting social cohesion and creating a common cultural space.

We receive with satisfaction the recent creation of the Consultative Council of Municipal Authorities, and stress the very important role that it will play in promoting the participation of the municipalities and regions in strengthening the Andean integration process.

We wish to congratulate the American Indigenous Parliament for their work in favor of the rights of the hemisphere’s indigenous peoples.

We urge the Andean Council of Foreign Affairs Ministers to promote the development of the social agenda, in coordination with the competent bodies and institutions of the Andean Integration System, and to assume new initiatives designed to bring integration closer to the civic responsibility of each one of our countries and to propitiate their active participation in the Andean Community decision-making process.

We wish to highlight the importance of the next Andean Conference on Employment, to be held in October 2004 in the city of Lima, with the support of the International Labor Organization.

We are aware that a joint and responsible development of educational systems in the subregion, through an effective exchange of contents and learning resources, will lead to a greater development of our countries, and an integration in this regard will be beneficial for meeting the social needs of our people.

We welcome with great interest the offer made by the Government of Venezuela to make the Andean members aware of the contents, formulation and results of the different social programs (Missions) implemented in various social development areas, particularly with regard to primary care (Barrio Adentro Program) and the fight against illiteracy (Robinson Mission).

We are aware of the opportunities and challenges that the external negotiations being conducted among the Member Countries imply for the community project.

Within this context, we reaffirm our commitment to preserve in these negotiations, the values, principles and benefits of the Andean integration, in accordance with the objectives, mechanisms and institutions set forth in the Cartagena Agreement. To that effect, we express our desire that the community system of rules prevails over our mutual relations.

We consider that it is also necessary to maintain an appropriate exchange of information and a consulting mechanism during the course of these negotiations, within a transparency and solidarity framework; to guarantee the extension of the benefits granted to the other Member Countries; and profit from the various negotiations to enhance and enrich the community system of rules.

We congratulate the Advisory Council of the Economy or Finance Ministers, the Central Banks and the Economic Planning Authorities for the substantial advances accomplished on macroeconomic convergence, financial integration and, in particular, on matters related to the harmonization of indirect taxes, that clearly show the degree attained by the Andean integration process and that will contribute to reduce potential commercial controversies, increase the degree of legal security and improve the national tax systems.

We emphasize the work conducted by the Andean Development Corporation and the Latin American Reserve Fund, which has given the Member Countries access to alternative dynamic financial sources.

We commend the re-launching of the Third Round of Negotiations of the Generalized System of Commercial Preferences, within the framework of the XI UNCTAD. We believe that initiatives such as this one favor the south-south trade and are in line with the new developing international trade geography.

We acknowledge that tourism is a valuable instrument of social cohesion, which can contribute significantly to the alleviation of poverty, inequality and exclusion, as a sustainable activity within the context of the development of the Andean Community. At the same time, it generates and preserves national identity and the cultural values, that contribute to the national and subregional socio-economic development.

We consider that in view of the economic, social, political, environmental and cultural importance of the agricultural sector in the integral development of our countries, this sector should be a high priority in the definition of public policies, plans, programs and projects.

We reaffirm the importance of the agricultural and rural sector as a dignified way of life that should be preserved as an asset for the future generations.

In order to achieve sustainable development in the subregion, we have commenced an ambitious cooperation effort on protection, recovery and preservation of natural resources and biological diversity. We work in this same direction in the building of an Andean energy alliance, and the integration and development of border areas to consolidate and deepen the Andean community integration and border development policy and promote the welfare of our populations.

Therefore, we commend the advances made in the consolidation of the Andean Energy Alliance (AEA) aimed at fostering the building of integrated energy -electricity and gas- markets; the participation in the international hydrocarbon market; the promotion of business development in “energy clusters”; the creation of a negotiation and qualification framework for energy services; and the development of renewable energies. The building of a subregional energy alliance can offer the Andean countries major economic benefits and produce exportable surpluses.

Being aware of the vulnerability of the region with respect to the impacts of the Climatic Change and the El Niño Phenomenon, we are gratified for the adoption of the Andean Strategy for Disaster Prevention and Relief. Its national and subregional application will contribute to prevent and mitigate the adverse effects of this phenomenon.

We express that this Summit has been a valuable opportunity to reflect on the new challenges posed by the international context that should be jointly assumed by our countries to act with more efficiency, and obtain more benefits from a process in course that involves all the countries. Nevertheless, just as globalization also means new demands, our societies present serious challenges for the alleviation of poverty, inequality and social exclusion. The Andean Community must face urgently the integral development agenda. If it does not assume the fight against poverty and inequality with decision, our access to the international economy will aggravate the inequalities and social exclusion.

Being aware of the need to advance in both directions, we consider that it is indispensable that a responsible social integration process should coincide with these efforts. Therefore, we agree that it should be the articulating element between our external and internal agenda. These are complementary aspects that will recover the development notion within a perspective of fair competitiveness, access, and participation, that intensifies the integration, and contributes to the alleviation of poverty, and to trade and economic negotiations within a modern perspective that consolidates the social and political cohesion between our countries, in order to achieve a greater international presence and influence.

Based on these criteria, we undertake to foster a New Strategic Design – "Integration for Development" that deepens the political, social, cultural and economic integration and cooperation, within the perspective of fair trade in a new common market model. The intention is to favor a just and equitable treatment between producers that encourages fair competitiveness, including agriculture and agribusiness, and micro, small and medium enterprises; that considers the community work applied to new topics, such as energy, sustainable development, biodiversity, and the access to the information society, promoting strategic alliances, and enhancing our political cooperation, strengthening our external projection and advancing in the execution of the social agenda of the Andean Community.

We assume with conviction this task with the assurance that its success will revitalize the Andean integration process, contribute to the South American integration process, facilitate the participation of our countries in the international market, preserving their ancestral values in the new culture of global diversity, promoting welfare, strengthening the democracy of our peoples, affirming their Andean identity and their faith in the ideal bequeathed to us by the founders of our Republics, with special reference to our Liberator Simón Bolivar.

Having examined the progress of the process and reflected on its future course, we agree on the following:

1. We recommend the Andean Council of Foreign Affairs Ministers and the Andean Community Commission that, with the support of the Andean Community General Secretariat, a New Strategic Scheme be approved in the shortest possible term. This New Strategic Scheme should be put in an Action Plan format including priority objectives and actions for the short and medium term, as well as its execution procedures. Said Plan should be accompanied with a specific budget for each one of the priority activities.

2. Taking into account the proposal of President Lucio Gutiérrez, we have instructed the Andean Council of Foreign Affairs Ministers and the Commission to advocate, with the support of the General Secretariat, a multidisciplinary strategic agreement between the Andean Community, MERCOSUR and Chile, based on the Dialogue and Political Coordination Mechanism of the Andean Community-MERCOSUR and Chile established in 2001, in La Paz. This agreement will constitute an integration mechanism that is consistent with the national development of the respective peoples. The Andean Council of Foreign Affairs Ministers has been entrusted with its follow-up.

3. Within the framework of the Common Foreign Policy, we instruct the Andean Council of Foreign Affairs Ministers to intensify the coordination for concerted common positions, specially concerning the process for the reform of the United Nations.

4. We instruct the Andean Council of Foreign Affairs Ministers to prepare a proposal, with the support of the General Secretariat of the Andean Community, for the implementation of the Andean Security Network. This Network will support and advice the Executive Committee of the Andean Common Policy on External Security on security and confidence-building matters, and will also allow the exchange of information on potentially conflicting situations, including early warnings, the prevention of conflicts, and crisis management.

5. We reaffirm the need to promote the prevention, fight and eradication of the illicit traffic of small and lightweight arms in all its aspects, through the implementation of Decision 552. To that effect, we instruct the competent national authorities to organize before next December, the National Coordination Committees – National Focal Points.

6. Being aware that abduction is an offense that violates the most elemental rights of individuals, such as the right to freedom, security, dignity and life, and in order for the national legislation of the Andean countries to be adapted to this new reality, giving consideration to the specific characteristics and problems of each country, we entrust the Andean Council of Foreign Affairs Ministers with the analysis of this subject with a view to present a Resolution proposal at the coming General Assembly of the Organization of American States in order to establish within the region, and later at the United Nations, the determination of abduction as an offense against humanity, and its persecution and punishment regardless of who are the involved parties.

7. We instruct the Andean Council of Foreign Affairs Ministers to adopt, in consultation with the competent national institutions, an Andean Plan to Fight Corruption, no later than by May 2005.

8. We entrust the Executive Committee of the Andean Common Policy on External Security with the presentation of an Andean Cooperation Plan to Fight Terrorism, for consideration by the Andean Council of Foreign Affairs Ministers, no later than September this year.

9. We entrust the Andean Council of Foreign Affairs Ministers with the drafting of alternatives to confer the highest possible political representation to the National Drug Commissions, and strengthen its participation in the Executive Committee of the Andean Cooperation Plan for Fighting Against Illicit Drugs and Associated Crimes, in order to provide the greatest effectiveness to its implementation.

10. We urge the Andean Council of Foreign Affairs Ministers and the referred to Executive Committee to set up a Network of Observatories of the Member Countries and create an Andean Drug Observatory.

11. We instruct the Andean Council of Foreign Affairs Ministers to advocate, in coordination with the National Drug Commissions, the decentralization of the programs for the reduction of the demand for illicit drugs, in order to develop local management capacities and commitments, to strengthen the prevention action in border areas, and to raise compliance with the community objectives and strategies on the basis of horizontal cooperation.

12. Within this context, we instruct the Andean Council of Foreign Affairs Ministers and the General Secretariat to promote cooperation initiatives with the United Nations Office on Drugs and Crime (UNODC) and the United Nations Latin American Institute for Crime Prevention and Criminality Treatment (ILANUD).

13. We instruct the Andean Council of Foreign Affairs Ministers to promote the creation or the strengthening of the Financial Intelligence Units in the Member Countries to prevent, fight and eradicate laundering operations of assets in the Andean Community irrespective of their origin.

14. We instruct the Andean Council of Foreign Affairs Ministers to prepare, with the support of the General Secretariat, an Andean Cooperation and Support Program for Migrants as part of Decision 548 "Andean Cooperation Mechanism on Consular Assistance and Protection, and Migrant Matters" and the commitments contemplated in the Latin American, Caribbean and European Union Declaration of Guadalajara.

15. We instruct the Andean Council of Foreign Affairs Ministers to adopt in September this year, with the support of the Andean Council of Social Development Ministers, a Comprehensive Social Development Plan, based on the preliminary draft prepared by the social authorities of the Member Countries and the General Secretariat and presented on this occasion to the Andean Council of Foreign Affairs Ministers.

16. We entrust the Ministers of Education and the persons responsible for the cultural policy of the Member Countries with the task to foster the joint development of an educational network portal, and the use of new information and communication technologies in the school and continuing education systems, to improve the quality and equity of education.

17. We instruct the Andean Council of Foreign Affairs Ministers to coordinate with the Andean Parliament, the authorities responsible for the cultural policy of the Member Countries, the Andean Simón Bolivar University and the Andrés Bello Agreement, so that the necessary arrangements be made to obtain resources for the establishment of the Andean Community-MERCOSUR Cultural Center and the institutionalization of the Andean Cultural Week.

18. We urge the competent national authorities and the indigenous organizations of the Member Countries that have not yet designated their representatives before the Working Committee on the Rights of the Indigenous Peoples of the Andean Community to complete their designation in the shortest possible term in order to facilitate its immediate installation.

19. We instruct the Andean Council of Foreign Affairs Ministers and the Commission to promote, within the scope of their respective competence and with the support of the General Secretariat of the Andean Community, the necessary coordination and technical work for the negotiation of an Association Agreement that includes a free trade agreement with the European Union, together with joint actions to promote the renewal, extension and effective utilization of the customs preferences granted through the SPG-Drug.

20. We instruct the General Secretariat of the Andean Community to support actively all the foreign negotiation processes conducted jointly and individually in order to facilitate the exchange of information, consulting, and the coordination of joint positions within the framework of the Decision on Commercial Negotiations with Third Countries.

21. We entrust the Advisory Council of Finance Ministers, the Central Banks and Economic Planning Authorities, with the task to promote the integration of the Andean financial markets, counting with the participation of the supervisory and regulatory authorities of the financial sector, to constitute in the medium and long term an Andean financial market, and define its operation in order to contribute to improve the savings and investment capacity, to reduce the active interest rates, and to facilitate the access to credit of all the economic agents in the subregion, specially micro, small and medium enterprises.

22. We also instruct the Advisory Council of Finance Ministers, the Central Banks and Economic Planning Authorities to prepare a proposal for the creation of an Andean capital market with securities issued by the public and private sector of our countries and the Andean financial organizations, and to foster the adoption of the "Special System for Andean Regional Issues" prepared by the Andean Development Corporation.

25. Recognizing the social responsibility of companies, among other organizations, and their crucial role in our societies to overcome inequality and create job opportunities, we call for the strengthening of the productive job creation policy that will contribute to increase the incorporation of workers to wealth-generating activities for the alleviation of poverty and the promotion of sustainable development.

26. We instruct the Official Representatives before the Commission to carry out a broad and open debate on the more appropriate external tariff to advance in the Andean integration process. In that regard, a working schedule and plan should be prepared with the support of the General Secretariat to reach a stand on the Common External Tariff and its possible modalities, to be adopted no later than by May 10, 2005.

27. To enhance the Andean integrity, we instruct the Commission to design and conduct, based on the proposals of the General Secretariat, a working program with specific objectives and actions while Decision 580 is in effect, to ensure the circulation of goods, services and persons within the Andean market, to eliminate the obstacles and restrictions for the subregional trade, and to harmonize the regulations for an appropriate operation of an expanded Andean market.

28. Based on the proposals that the General Secretariat will present no later than by December this year, we entrust the Commission with the advancement of actions leading to Decisions on the promotion of tourism, the harmonization of the regulations and trade on tourist services. The Commission shall inform on the results of its actions on this matter during the coming Regular Presidential Council.

29. We instruct the Andean Council of Agriculture Ministers to implement, in coordination with the Ministers of other related sectors, the Andean Rural Development and Agricultural Competitiveness Program approved by the Agriculture Ministers.

30. We also entrust such Council with a fast, deep and frank review of the trade issues of the sector products within this new agricultural and rural scope priority, in coordination with the Ministers of Trade and other related sectors.

31. We instruct the Andean Council of Agriculture Ministers to attend the meeting to be held on September 8, 2004 at the General Secretariat headquarters, in coordination with the Commission and other areas, to adopt provisions to promote an increased development and a growing and sustainable trade in the oil-seeds chain.

32. We entrust the Andean Council of Environment and Sustainable Development Ministers, with the formulation of an Andean strategy, in coordination with the Andean Council of Foreign Affairs Ministers and the Advisory Council of Energy Ministers, to confront and mitigate the adverse effects of the climate change, considering the priorities contemplated in the "Guidelines for the Environmental Management and Sustainable Development of the Andean Community" and the "2002-2003 Follow-Up of the Johannesburg Summit in the Andean Subregion".

33. We support the creation of the Andean Biodiversity Institute that will be based in the city of Quito. Such Institute will commence its operations once the Government of Ecuador and the Andean Parliament have obtained the necessary funds to ensure its sustainability, and its bylaws are prepared in coordination with the competent authorities of the Member Countries and the Andean Integration System, in consultation with the civil society organizations.

34. We instruct the Andean Council of Foreign Affairs Ministers to define, in coordination with the Andean Disaster Prevention and Relief Committee, a joint position for the United Nations World Conference on the Reduction of Natural Disasters, to be held from January 18th to January 22nd, 2005, in Japan.

35. We urge the competent national authorities to use the resources and infrastructure of the International Center for the Investigation of the El Niño Phenomenon –CIIFEN- in order to design early warning actions and joint projects to prevent and mitigate the impact caused in the subregion by this phenomenon, which should be implemented within the Andean Strategy for Disaster Prevention and Relief.

36. We commission the Andean Council of Foreign Affairs Ministers and the Andean Community Commission to adopt regulations for the protection of native products and traditional knowledge, in accordance with their respective competence and in coordination with the appropriate national authorities or the Andean Council of Ministers of the Environment.

37. We express our support to the process for the strengthening of democratic institutionality in Bolivia, through the direct consultation to the Bolivian people in the referendum that will be held for the first time next July 18th within the framework of its constitutional legal system.

38. Likewise, we express our support to the process for the strengthening of democratic institutionality in Venezuela, through the referendum that will be held in the country next August 15th, in compliance with its constitutional provisions.

39. We emphasize the importance of the Third South American Summit to be held in Peru on December 8th and 9th, 2004. By confirming our attendance to this transcendental event, we reaffirm that it will be a convenient opportunity for the advancement of the creation of a space for South American integration. It will also commemorate the 180th Anniversary of the Ayacucho Battle that consolidated the independence of our countries, and the convocation to the Panama Amphictyonic Congress that marked the beginning of the integration process of the region.

40. We commission the General Secretariat of the Andean Community with the design, in coordination with the General Secretariat of the Andean Parliament, of efficient mechanisms and procedures to guarantee the coordination between both such bodies. This activity will contribute to the full compliance with the attributions that Article 43 of the Cartagena Agreement confers to the Andean Parliament. The General Secretariat will inform the Andean Council of Foreign Affairs Ministers on the agreed to mechanisms.

41. We instruct the General Secretariat of the Andean Community to coordinate the installation in the shortest possible term of an Andean Integration System portal to facilitate the exchange of information between the community bodies, and for the worldwide presentation of the Andean integration, which will contribute to a greater knowledge and dissemination of the Andean institutionality.

42. We reiterate the importance of the signing of the Andean Parliament Protocol for Direct Elections and congratulate the Member Countries that have done so. We also urge the National Congresses of the Member Countries that have not ratified it to do so in the shortest possible term in order to hold direct and universal elections of the Representatives before the Andean Parliament in the electoral processes that will be soon conducted.

The Presidents of Bolivia, Colombia, Peru and Venezuela express their most deep thanks to Mr. Lucio Gutiérrez Borbúa, President of the Republic of Ecuador and the Ecuadorian people, and particularly to the city of Quito, for the warm hospitality offered and the organization that contributed to the success of this Summit. We also wish to express our appreciation to the Pro Tempore Secretariat that has been in charge of Ecuador during the 2003-2004 period, and the General Secretariat for its efforts.

We agree that this document shall be known as the "San Francisco de Quito Agreement".