Latin American Free Trade Agreement (Lafta)

Article 47: In the case of products under regional tariff preference or regional or partial agreements that are not produced or produced in significant quantities on its territory, each Member State endeavours to prevent the taxes or other internal measures levied from leading to the cancellation or reduction of concessions or benefits obtained by a Member State as a result of the respective negotiations. Article 11: Complementary economic agreements aim, among other things, to promote the maximum use of production factors, to encourage economic complementarity, to ensure a level playing field, to facilitate the entry of products into the international market and to promote the balanced and harmonious development of Member States. In 1980, the LAFTA was reorganized, in Article 59, into the Latin American Integration Association (ALADI): these provisions of the treaty do not infringe on the rights and obligations arising from agreements signed by one of the signatory states prior to their implementation. Ii. Agreement on the regional scope between Member States The treaty signed in Montevideo proposed the phasing out of trade barriers between Member States, which culminated until 1973 with totally free trade. A permanent body has been established to facilitate regular tariff reductions and regular negotiations between members. LaFTA was an early success, as these nations had taken very little action in the years leading up to the agreement. However, progress on integration was slow in the 1960s, when disparities between Member States became increasingly evident. …

a contract creating the Latin American Free Trade Association (LAFTA), predecessor of the Latin American Integration Association. In 1970, the seven signatories joined Ecuador, Colombia, Venezuela and Bolivia. The treaty provided for a 12-year transition period during which all trade barriers should be removed…. The aim of the organization is to continue the process of integration in the region, which leads to harmonious and balanced socio-economic development. The organization`s mission is to promote and regulate reciprocal exchanges, develop economic complementarities and support economic cooperation actions in favour of market expansion. Latin American Free Trade Association (LAFTA), an eleven-nation organization committed to promoting economic integration in Latin America. Founded on February 1, 1960 in Montevideo, Uruguay, it served as a forum for the establishment of broader economic relations between Latin American nations. The Montevideo agreement was originally signed by representatives of Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay. Bolivia, Paraguay and Venezuela became members shortly thereafter. At the same time, Member States are working to put in place effective clearing mechanisms to take into account the negative effects that could affect intra-regional trade in relatively less developed landlocked countries. Article 13: Trade promotion agreements deal with non-tariff issues and tend to favour intra-regional trade flows.

Article 10: Trade agreements are exclusively aimed at promoting trade between Member States and are subject to the specific rules to be taken for this purpose. Frustrated by the slow pace of integration, the LAFTA countries signed the Caracas Protocol in 1969, extending the free trade deadline until 1980. The division and imbalance that threatened the LAFTA in the 1960s did not increase until the 1970s.