Based on gradual Rapprochement between CAN and Mercosur
Decision on South American political integration has already been made, says Allan Wagner

Montevideo, October 8, 2004

The political decision to integrate our nations and create the South American Community of Nations has already been made. The demarcation of a South American Integration Territory (ESI) will be based on a gradual rapprochement between the Andean Community and Mercosur, indicated Andean Community Secretary General, Allan Wagner, during a special meeting organized by the Latin American Integration Association, ALADI, headquartered in Montevideo, Uruguay.

In his speech, Ambassador Wagner defined the association model that would make it possible to consolidate this political decision. He proposed the execution of a Framework Agreement that would go beyond trade integration, in a wider perspective than a Free Trade Agreement, expanding trade integration, infrastructure development, financial cooperation, political cooperation, and economic and social development.

The Andean authority also expressed his confidence that by next December, when a South American Summit will be held in Peru on the 8th and 9th, as well as an Andean Development Summit on the 7th, the respective Economic Complementation Agreement between the CAN and Mercosur will have been implemented, upon completion of the technical negotiations stage.

In a different part of his speech, the CAN Secretary General stated that “right now, ALADI has a very important commitment to face, to finally become the framework under which the different Latin American regions would converge”.

“Unlike the events of the sixties, through the Montevideo Agreement, which was deemed to be a Latin American integration macro process, what we are going through right now is that the sub-regions are starting to get organized together, but no longer based on a macro design, but rather spontaneously, pragmatically and with a new perception of their interests; in other words, from bottom to top”, said Wagner.

In his speech, the CAN Secretary General mentioned certain financial data to highlight the huge potential of the South American Integration Territory, such as total exports to the world, which in 2003 topped US$ 180 billion, domestic trade amounting to about US$ 31 billion, and US$ 2,696 per capita income.

In the same year, the Gross Domestic Product for the combination of countries forming part of the ESI, was US$ 974 billion, which is higher than Canada’s GDP of US$834 billion, and the US$ 682 billion generated by the “Asian Tigers” comprising the ASEAN economic block.

In her speech, Ambassador Claudia Turbay, Colombia’s Permanent Representative and Chairperson of ALADI’s Standing Committee, highlighted “the historical responsibility to shape political and economic integration in this part of the hemisphere, to turn it into true integration for development”, she stated.

The Secretary General of the CAN was welcomed by his ALADI counterpart, Juan Francisco Rojas Penso, who hailed the presence of Ambassador Wagner, at what he called “a highly transcendent time”, since the 13th Meeting of the Andean Council of Foreign Affairs Ministers will be held on October 18, “when the political will of the countries to take a quality leap in the Latin American integration process will be tested”, he noted.

The Secretary General of the CAN went through the second day of his official visit to Uruguay. Yesterday he met with the President of the Republic, Jorge Batlle, and the Foreign Affairs Minister, Didier Opertti. Today he will be holding meetings with MERCOSUR authorities.