·        Set up in 1991, members are Argentina, Brazil, Paraguay & Uruguay.

·        Venezuela has also become a full member in July 2006.

·        Objective is to form a common market through co-ordinating fiscal and exchange rate policy, and accelerating economic development

·        Intra-regional trade is being gradually liberalized

·        Tariffs on 90% of intra-regional trade has been removed

·        Brazil & Argentina have eliminated intra-regional tariffs, Paraguay and Uruguay are expected to follow.

·        Common external tariff(CET) ranging from 0-20%

·        India has signed a PTA with MERCOSUR. 

Andean Community of Nations (CAN)

·     Set up in 1969, revived in 1990

·     Members are Bolivia, Colombia, Ecuador, Peru and Venezuela

·     Objective is to form a common market through harmonization of social and economic policies, and joint programmes

·     By 1993, tariffs had been eliminated in almost all products

·     CET ranges between 5-20%, except for Peru

·     For Peru, CET is at a flat rate of 15% 

CACM (Central American Common Market)

 ·        Set up in 1961, revived in 1990.

·        Members are Costa Rica, El Salvador, Guatemala, Honduras & Nicaragua.

·        Objective is to form a custom union.

·        Agriculture goods are excluded from trade liberalisation; a common price band for key agro-products is in place.

·        Many restrictions to intra-regional trade have been lifted.

·        CET ranges between 5-20%.

 CARICOM (Caribbean Community)

 ·        Set up in 1973

·        Members comprise 15 Caribbean countries (Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Monteserret, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago)

·        Objective is to form a common market through harmonization of customs procedures

·        Most intra-regional trade has been liberalized

·        First phase of reducing CET to a range of 0-35 has been implemented starting in 1993

 LAIA(Latin American Integration Association, ALADI)

 ·        Set up in 1980, formerly known as LAFTA.

·        Members comprise 12 countries (Argentina, Bolivia, Brazil, Cuba, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela)

·        Objective is to form a common market through extending regional tariff preferences, and ‘partial scope agreements’ among some of the members

·        A large number of bilateral trade agreements have been signed among the members to liberalize trade in the LAIA group.

 EAI(Enterprise for the Americas Initiative)

·        Set up in 1990

·        Members comprise CARICOM members, MERCOSUR members, Andean Pact members, and 10 countries including the US

·        Objective is very ambitious – to achieve a free trade zone for the entire Western Hemisphere

·        To reinforce market-oriented reforms in LA by expanding trade investment, and strengthening environment policies

·        The US has signed framework agreements with 31 countries.

·        Framework agreements establish the agenda for bilateral negotiations as well as institutional mechanisms.

NAFTA(North American Free Trade Agreement)

 ·        Set up in 1994.

·        Members comprise the US, Canada and Mexico.

·        Objective is to form a free trade area is goods and services, government procurement, and intellectual property rights, and liberalisation of investment flows and professional services.

·        Canadian Agro and Mexican petro-products are partially excluded.

·        Effective January 1, 1994, phased elimination of tariffs and non-tariff barriers has started.