Lima, December 16, 2003. Today, in Montevideo, the Andean Community (CAN) and the South Common Market (MERCOSUR) signed an Economic Complementary Agreement for the creation of a Free Trade Zone, starting as from July 1, 2004.

This Agreement sets a schedule for trade deregulation and trade disciplines such as: Safeguard System, Technical Standards, Health and Phytosanitary Measures, Origin System, Antidumping and Offsetting Measures, Special Measures, and Supplementary Notes. In addition, it includes regulations for conflict solution.

The Secretary General of the Andean Community, Guillermo Fernández de Soto, stated that “this trade agreement represents a significant qualitative step forward in the process of creating a South American space for integration and expresses the political willingness to achieve this common goal”.

He mentioned that the next step will go beyond the commercial aspects, pointing out that “South American integration must involve, in a multidimensional way, issues such as political relationship, democratic governance, physical integration, financial cooperation, environmental protection, promotion of productive chain competitiveness and human development”.

He recalled that “Andean integration was proposed, since its inception, as part of a Latin American dimensional process that, based on the strong cultural heritage of the community, will enable the creation of a South American space”. Furthermore, he pointed out that this Agreement allows for a rapprochement between the two blocks in their positions with regard to the regional and multilateral trade negotiations.

Fernández de Soto also indicated that the Foreign Affairs Ministers of both blocks have given instructions to their negotiators in order to complete in the shortest term possible the pertinent lists and agree upon the setting up of Specific Origin Requirements.

On the other hand, the Ministers recognized the valuable contribution provided by the officers of the participating countries and the Secretariats of the Andean Community and Mercosur.