Andean Community South American Nations Community Ecuador and the Integration Process

1. Andean CommunitySouth American Nations CommunityEcuador and the Integration Process New Delhi, March 28th, 2007 India International Centre

3. Andean Community Background and Stages of formation • 1965-1995: Model of Import Substitution • Construction and consolidation of domestic industry • 1995-2004: Open Regionalism and Free Trade • New Institutions • Establishment of Tariff Preference Zone • 2004: Integration for 21st Century • South American Union • New objectives

4. Open Regionalism The new Andean Institution

5. Culture (Cultural Industries) Social Development (Social Agenda) Finance (Customs) Environment (Andean Subtropical Strategy) Interior (Security & Peace, Migration, Drug Control) Agriculture (Common Agricultural Policy) Tourism (The route of Inca) Defense (Recognized Budget) Offices of the Ombudsmen Health (HIV Program) Energy (Peru-Ecuador) Rights of Indigenous People Corruption (Decision on Corruption) Disaster Management Infrastructure Prosecutor Meetings of State Ministers

6. Andean Community Court of Justice Headquarters: Quito, Ecuador Only for commercial matters 4 Judges Andean Parliament Headquarters: Bogota, Colombia General Secretariat The representatives of Venezuela, Ecuador and Peru are elected directly by the people and those of Colombia and Bolivia by the National Congresses Andean Development Corporation Development Bank Headquarters: Caracas, Venezuela Latin American Reserve Fund Hipolito Unanue Agreement (Andean Health Organization) Headquarters: Lima, Peru Andean University Headquarters: Sucre, Bolivia Branch: Quito, Ecuador Andean Business Advisory Council Andean Labor Advisory Council Three syndicates per country Simón Rodríguez Agreement Andean Integration System (SAI)

7. Transfer of Sovereignty • The decisions are supranational judicial orders and are included in the Law of Andean Republics. • They are registered in Official Gazette.

8. Exportaciones FOB Var. Anual Exportaciones Importaciones CIF Var. Anual Importaciones (millones de $) (%) (millones de $) (%) Bolivia 4 178 49,7 2 732 17,3 Colombia 24 615 16,4 26 374 24,4 Ecuador 12 187 20,8 12 203 23,0 Perú 23 297 39,0 16 659 24,8 CAN 64 277 26,6 57 968 23,8 1 Result of Open Regionalism Comercio Exterior de Bienes de la CAN, 2006 Exportaciones FOB intracomunitarias

9. Result of Open Regionalism *Estimaciones realizadas en base a cifras oficiales de los países. Fuente: Comunidad Andina, Secretaría General. Sistema Integrado de Comercio Exterior. Decisión 511.

10. Bilateral Trade between Andean Nations and India Fuente: Comunidad Andina

11. New objectives of 21st Century’s Integration • South American Integration • Unity in Diversity • Recovery of Natural Resources • Harmony with the nature • Major social participation • Implementation of Andean Charter of Human Rights • Decisions about biodiversity, environment and global warming • Physical Integration with social contents • Respect for different competition policies and characteristics of each country • Strengthening of Associations of Small manufacturers (Andean SME) • Asymmetry (Especial & Differential Treatment ) for Ecuador and Bolivia • Reformulation of the Supra nationality • Dialogue with civil society • Political and Commercial relations with Europe, Asia and Africa

12. Conclusion • New Integration can be constructed only through political will in the long run. • To strengthen the institutions, to coordinate the Andean treaties with the national legislations. • Common foreign policy with Latin American region, Asia and Africa and other integration models. • South American Integration for all.

13. South American Nations CommunityCASA

14. Basic Characteristics • Population : 361 millions people • Total Area : 17 millions square kilometers • Exports : 181.856 millions USD • GDP : 973613 millions USD • 27% of fresh water of world • 8 millions square kilometers of woodland • Two oceans: Pacific and Atlantic • Hydrocarbon available for 100 years

15. Background • South American Nations Community emerged as a result of the Declaration of Cusco - Peru on December 8th, 2004. • Meeting in Brasilia, 2005 • Meeting in Cochabamba, 2006

16. Integration Model of 21st Century • The process of globalization has influenced our economies and societies. Therefore, it is necessary to build alternatives that can help to pick up the growth, the protection of macro economic balances, emphasis for distribution of rent as an instrument of elimination of social exclusion and reduction of poverty and discrimination of external vulnerability. • Regional integration is an alternative to avoid the effect of globalization to broaden the asymmetries, contributes to the economic, social and political marginality and tries to take advantage of the opportunities for development. • South American integration is necessary not only to solve the great hindrances that affect the region, like poverty, exclusion and social inequality, but also as a decisive step to obtain a multipolar, equal and just world with peace. • We aim for a new model of integration of self identity, pluralism, diversity and differences acknowledging the different political and ideological conceptions. • It is an innovating integration that includes the achievements and progress of MERCOSUR, ANDEAN community and Chile, Guyana and Surinam.

17. Main Guiding Principles of Integration • Solidarity and Cooperation • Sovereignty with respect to territorial integrity and self-determination of States. • Implementation of Peace Zone • Democracy and pluralism • Human Rights • Harmony with Nature

18. Mechanism for the construction of South American Integration • All South American countries can be a part of the process and at the same time each country can assume the commitments according to its solidarity. • It is a space of consensus and conciliation, contribution to the regional stability, coordination of regional social policy and the valuation of a cultural identity.

19. Objectives • Overcoming the asymmetries for an equitable integration. Solution and mechanisms to remove the inequalities between countries. • It’s a new South American social contract which integrates the trade output with the social agenda. It should be expressed in the establishment of defined goals of social development and in systematic mechanisms of evolution. • Energy integration for the well-being of all. Taking into consideration strategies and national policies and utilization of energy resources those are integral, sustainable and shared in common (solidarity). • Infrastructure for the connectivity of our nations. Connectivity for the construction of transport and telecommunication network taking into consideration social development, sustainable economy and preserving the environment. • Economic and Commercial Integration • South American Financial Integration • Industrial and Productive Integration • South American citizenship • Migration • Cultural identity • Cooperation in Environmental matters • Civil Participation • Cooperation in Defense matter

20. Institutional Mechanisms • Annual Meetings of Head of the States and Governments • Semester meetings of Foreign Ministers • Ministerial Meetings according to sectors/areas • Committee of High Officials • Pro Tempore Secretariat • Strategic Committee to study the Integration Process

21. Conclusion • Integration process must have a foundation. For example the European Economic Community had the Association of Coal and Steel. • The South American Community Nations have IIRSA, Energy Integration (Petro Sur), Banco del Sur (Foreign Reserves). • Efforts to integrate the Atlantic Ocean and the Pacific Ocean. • Efforts to integrate with Asia and Africa. • It looks for the region that has major importance in the international agenda and in the international forums.

22. Ecuador and the Integration Process South American Regional Infrastructure Integration Initiative (IIRSA): Amazon Hub

23. Ecuador and the Integration Process • Banco Sur, Development Bank: 10%-20% of reserves are of Central Bank. • Petro Sur: Energy Company of the South American countries. • TV Sur: Independent channel • Common currency • South University

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