Asociacion latinoamericana de integracion

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The 1980 Montevideo Treaty (TM80) is the global legal framework that constitutes and rules the ALADI and was signed on August 12th 1980. It establishes the following general principles: pluralism, convergence, flexibility, differential treatment and multiplicity.

The ALADI promotes the creation of an area of economic preferences in the region, aiming at a Latin-American common market, through three mechanisms:

- Regional tariff preference granted to products originating in the member countries, based on the tariffs in vigour for third countries

- Regional scope agreement, among member countries

- Partial scope agreements, between two or more countries of the area

Either regional or partial scope agreements (Articles 6 to 9) may cover tariff relief and trade promotion; economic complementation; agricultural trade; financial, fiscal, customs and health cooperation; environment preservation; scientific and technological cooperation, tourism promotion; technical standards and many other fields (Articles 10 to 14).

As the TM80 is a “frame treaty”, by subscribing it, the Governments of the member countries authorize its Representatives to legislate through agreements on the most important economical subjects for each country.

A preference system, which consists of market opening lists, special cooperation programs (business rounds, preinvestment, financing, technological support) and countervailing measures on behalf of the landlocked countries, has been granted to the countries qualified as relatively less developed (Bolivia, Ecuador and Paraguay), to favour their fully participation in the process of integration.

Any Latin-American country can join the 1980 Montevideo Treaty. The Republic of Cuba was the last country to accede, becoming full member country on August 26th 1999. Besides, the ALADI is also open to the all Latin American countries through agreements with other countries and integration areas of the continent (Article 25), as well as to other developing countries or their respective integration areas outside Latin America (Article 27).

As the institutional and normative “umbrella” of regional integration that shelters these agreements as well as the subregional ones (CAN, MERCOSUR, G-3, etc.) it is the aim of the Association to support and favour every effort in order to create a common economic area.

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