Speech by the President of Bolivia, Jorge Quiroga Ramírez, at the Opening Ceremony of the Summit of Presidents of the Andean Community of Nations
Santa Cruz, January 30, 2002

It is a great honor for me to welcome once again to the Andean Community headquarters Dr. Gustavo Noboa Bejarano. He comes to us today as Constitutional President of the Republic of Ecuador. Nearly three years ago we also had the opportunity to listen to his valuable advice in this same auditorium. At that time he was vice president of his country, and he was accompanied by a very significant group of Ecuadorian businessmen who were in Lima on the noble mission of strengthening even more the ties of brotherhood and integration between Ecuador and Peru.

Ample merits make President Noboa an outstanding statesman. In particular, his valor, his determination and his clear perception of national interest, above any desire for personal gain, have allowed him to overcome successfully one of the most critical moments in the political and economic history of his country.

For all these reasons, his presence among us constitutes an example and as well as incentive for us to move resolutely toward overcoming the new challenges that our integration will have to face, after the recent Andean Presidential Summit of Santa Cruz de la Sierra, held last January.

Under these circumstances, we felt that it was not only necessary but positively indispensable to involve the Heads of State directly in the management of this stage of integration.

The direct participation of the Presidents in the Summit negotiations made it evident that there is genuine political will and a strong commitment to Andean Integration on the part of the Heads of State. This, in far more practical terms, was especially reflected by the decision to introduce the common external tariff ion December 31, 2003. Undoubtedly there is a long way to go at technical levels, but the presidential mandate is precise and clear.

The adoption of the Common External Tariff is an essential step toward the formation of a full Customs Union. To accomplish the goal of a Customs Union, we will, in addition, have to eliminate or harmonize trade-distorting practices, such as the system of free zones and active perfection, incentives for exportation, intra-Community safeguards, and preferences to third parties. These practices, although they are not illegal today, are the cause of growing problems and trade disputes in the context of Andean free trade, and in fact such practices impede an accelerated expansion of interchange among us.

Consolidation of the Customs Union is an indispensable goal for two reasons; first, because it is a step prior to the formation of the Common Market that we have proposed to establish in the year 2005; second, because without this structure there will be no possibility at all of developing a Community trade policy vis a vis the FTAA, the European Union, or the WTO.

For these reasons, and because of the urgency of the matter, we need to raise our sights. Momentary problems should not distract us from the long-term vision. We must continue to make progress on establishing clear and simple rules of the game that will apply to everyone without exception. Only by consolidating this progress will we be able to make the benefits of integration even more encouraging than they are at present.

Over the past two years, in the midst of an international crisis, our integration has shown itself to be non-cyclical. We have grown in our internal trade while our exports to the rest of the world have decreased. In the case of Ecuador, in the year 2000 their intra-Community exports rose 49 percent, while their exports to the rest of the world increased only 15 percent. Figures for the year 2001 show Ecuador's intra-community exports increasing by 17 percent while their sales to the rest of the world fell by almost 8 percent.

In the period of greatest expansion of our trade — 1992 to 1997— the result of Andean integration in paid employment associated with intra-community exports was 323 thousand new jobs. In the case of Ecuador, during the same period, 86 thousand new jobs were created as a result of growth in intra-community trade.

The step taken at the Presidential Summit of Santa Cruz calls for a rapid maturating of our integrationist awareness and a clear vision of our shared interests. With an ever-increasing number of common interests, our five countries are able to identify common goals that will allow us to undertake our own strategies for the economic, social and political development of our Community of nations and for its adequate external relationships.

Mr. President, I know that we can count on your support for the achievement of these great goals. You are, as always very welcome to this house.

Thank you very much.