ALADI is known as the acronym of the Latin American Integration Association, an intergovernmental organization that seeks to promote economic and social development among its members.
ALADI is made up of 13 member countries that include Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela, being open to the request of accession of any other Latin American State.
ALADI was created on August 12, 1980 by the Treaty of Montevideo, replacing the Latin American Free Trade Association (ALALC), under five principles: pluralism, convergence, flexibility, differential treatments, and multiplicity.
The ALADI aims to achieve a common Latin American market, through the gradual elimination of trade barriers among member countries, thereby helping the region’s social and economic development to provide a better quality of life for its inhabitants.
ALADI, as such, conducts differential treatment in the development of member countries, under the following policies:
- A tariff preference on products originating in ALADI member countries.
- Regional agreements, common to member countries.
- Partial scope agreement between 2 or more of the member countries.
ALADI is formed under the following organizations:
- Council of Foreign Ministers, the supreme body of ALADI that adopts the most important decisions concerning the integration process.
- Evaluation and Convergence Conference, is responsible for examining the operation of the integration process in all its aspects, facilitating partial scope agreements, and promoting actions on economic integration.
- Committee of Representatives, body responsible for analyzing all initiatives that encourage the fulfillment of the objectives set by the Treaty.
- General Secretariat, technical body of ALADI. Its function is the proposal, evaluation, study, and management aimed at achieving the objectives set in the Association.