EENI

The Andean Community (CAN) Trade in goods, services and investments

International Business

Master International Business


  

Learning Unit: Andean Community (CAN). Syllabus:

- The Andean Community (CAN).
- The Andean Integration System (SAI).
- Economic profile of the Andean countries.
- The Andean Community's Common Foreign Policy (CFP). Relationships with European Union, Mercosur, USA, China, India, Russia, ...
- CAN: Productive and commercial development. Trade in goods, services and investments. Transportation.
- The Andean Customs Union. Free Trade Area. Common Market. The NANDINA nomenclature. Common External Tarif (ARIAN).
- The Andean Development Corporation (CAF).

Course learning materialsEn
Also available in: Es Comunidad Andina

Communication with tutors (student's questions, exercises ...) in: En Fr Es Pt ar Course

Educational level: Continuing education / Executive education programs.

Related Courses: Business in America - Business in the Andean countries - Master in Business in Latin America - Institutions

Course Summary

Economic profile of the Andean Countries. Relationships with European Union, Mercosur, USA, China, India, Russia, ...

The Andean Community (COMUNIDAD ANDINA) is a subregional organization endowed with an international legal status, which is made up of Bolivia, Colombia, Ecuador y Peru and the bodies and institutions comprising the Andean Integration System (AIS).

- Partner Countries: Chile, Argentina, Brazil, Paraguay and Uruguay
- Observer countries: Mexico and Panama

Located in South America, the five Andean countries together have 97 million inhabitants living in an area of 4 700 000 square kilometers, whose Gross Domestic Product amounted to 260 billion dollars.

Objectives:

  • Promote the Member Countries’ balanced and harmonious development under equitable conditions through integration and economic and social cooperation;
  • Step-up their growth and job creation;
  • Facilitate their participation in the regional integration process, with a view to the gradual formation of a Latin American common market;
  • Reduce the Member Countries’ external vulnerability and improve their position in the international economy;
  • Reinforce subregional solidarity and reduce differences in development among the Member Countries; and
  • Seek the continuing improvement of the living standards of the subregion’s inhabitants.

Sample of the Course:
Andean Community

The Andean Integration System (SAI) is a set of bodies and institutions forming part of the Andean Community, designed to allow for an effective coordination between them in order to maximize subregional Andean integration, promote their external projection and strengthen the actions related to the integration process.

The Andean Development Corporation (CAF) is a multilateral financial institution that supports the sustainable development of its shareholder countries and regional integration. While its main shareholders are Bolivia, Colombia, Ecuador, Peru, and Venezuela, Argentina, Brazil, Chile, Costa Rica, the Dominican Republic, Jamaica, Mexico, Panama, Paraguay, Spain, Trinidad & Tobago, and Uruguay, as well as 15 private banks in the region, are also shareholders.

CAN seeks to strengthen its links with United Nations (UN), United Nations Conference on Trade and Development (UNCTAD), the Economic Commission for Latin America and the Caribbean (ECLAC) the Organization of American States (OAS), the World Trade Organization, the Latin American Integration Association (ALADI) and the Latin American Economic System (SELA), among others.

The Andean Community's Common Foreign Policy (CFP)

It should be stressed that trade relations between the CAN and Chile have also been significant and growing. Andean exports to that country have tripled over the past 4 years, to approach a figure of US$ 1,560 million in 2005, driven mainly by the heavy growth of Peruvian and Colombian exports, although all of the Andean countries showed important increases. Of the Andean countries, Peru is the largest buyer of Chilean products, followed in importance by Colombia, Ecuador and Bolivia.

CAN and the European Union
The establishment of a biregional strategic alliance between the Andean Community and the European Union that should lead to the signing of an Association Agreement that includes a free trade agreement has strengthened relations between the two blocs.
The European Union is the Andean Community’s second most important trading partner. In 2004, 12% of the Andean countries’ total exports went to that market, which supplied 13% of their imports.

The Third Summit of South American Presidents, held in Cusco on December 8, 2004 witnessed the political creation of the South American Community of Nations, a great political project combined with a program of decentralized development. As decided by the Presidents at that meeting, the South American Community of Nations will be shaped through the gradual convergence of the Andean Community and MERCOSUR and Chile, together with Guyana and Suriname.

It is the intention of the Andean Community to deepen and consolidate its relations with the Central American Integration System (SICA), consisting of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, in order to move toward Latin American integration through the coordination and convergence of the subregional blocs.

Relations between the Andean Community and MERCOSUR, integration blocs whose membership includes nine of the twelve South American countries, have evolved rapidly toward a convergence process that will benefit the 350 million inhabitants of their member countries. The advances are reflected in the creation of a free trade area and the implementation of a political dialogue that have made it possible to arrive at a reciprocal association between the two blocs.

The United States is the main trading partner of the Andean Community Member Countries. In 2004, 41 percent of the CAN's exports went to the United States, which was responsible for 26 percent of its imports.

The Andean Community and the People’s Republic of China signed an "Agreement for the establishment of a political consultation and cooperation mechanism" in March 2000, in order to strengthen their cooperation and trade, business and technological exchanges and their dialogue on international multilateral matters.

In June 2003, the Andean Community and the Republic of India established a Political Dialogue and Cooperation Mechanism for the purpose of strengthening and diversifying their friendship, understanding and cooperation and developing mutual trade and investment relations and cultural and scientific exchanges.

In implementing its Common Foreign Policy, which subscribes to a principle of open regionalism, the Andean Community has stepped up its contacts with the General Secretariat of the Association of Southeast Asian Nations (ASEAN) and with the Asia-Pacific Economic Cooperation Forum (APEC).

The Andean Community and the Russian Federation have established a mechanism for political dialogue and cooperation to strengthen and expand their friendship, mutual understanding, and economic, scientific and technical cooperation, as well as their cultural ties.  

Andean, Community, CAN, Trade, goods, services, investments, Economic, profile, Andean Countries, Relationships, European Union, Mercosur, USA, China, India, Russia

 

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