Latin American Integration Association

The Latin American Integration Association / Asociación Latinoamericana de Integración / Associação Latino-Americana de Integração (LAIA / ALADI) is an international and regional scope organization. It was created on 12 August 1980 by the 1980 Montevideo Treaty,^[1]^[2] replacing the Latin American Free Trade Association (LAFTA/ALALC). Currently, it has 13 member countries, and any of the Latin American States may apply for accession.

This article is about the trade association. For the farming implement, see Laia (tool).

Latin American Integration Association
Asociación Latinoamericana de Integración
Associação Latino-Americana de Integração

Montevideo, Uruguay

Trade bloc

13 members

Sergio Abreu

12 August 1980

Objectives[edit]

The development of the integration process developed within the framework of the ALADI aims at promoting the harmonious and balanced socio-economic development of the region, and its long-term objective is the gradual and progressive establishment of a Latin-American single market.

Promotion and regulation of reciprocal trade

Economic complementation

Development of economic cooperation actions contributing to the markets extension.

Pluralism in political and economic matters;

Progressive convergence of partial actions for the establishment of a Latin-American Common Market;

Flexibility;

Differential treatments based on the development level of the member countries; and

Multiple forms of trade agreements.

A Regional Tariff Preference applied to goods from the member countries compared to tariffs in-force for third countries.

Regional Scope Agreements, those in which all member countries participate.

Partial Scope Agreements, those wherein two or more countries of the area participate.

The ALADI promotes the establishment of an area of economic preferences within the region, in order to create a Latin-American common market, through three mechanisms:

The Relatively Less Economically Developed Countries of the region (Bolivia, Ecuador and Paraguay) benefit from a preferential system, through the lists of markets opening offered by the countries in favor of the Relatively Less Economically Developed Countries; special programs of cooperation (business rounds, pre-investment, financing, technological support); and countervailing measures in favor of the land-locked countries, the full participation of such countries in the integration process is sought. The ALADI includes in its legal structure the strongest sub-regional, plurilateral and bilateral integration agreements arising in growing numbers in the continent. As a result, the ALADI – as an institutional and legal framework or “umbrella” of the regional integration- develops actions in order to support and foster these efforts for the progressive establishment of a common economic space.

Latin American Integration Association