Latin American Integration Association (ALADI)

International Organization Profile

Objective:

The Latin American Integration Association (ALADI) is an intergovernmental organization that promotes the expansion of regional integration to ensure its economic and social development, with the ultimate goal of establishing a common market.

Date of Establishment:

1980

Headquarters:

Montevideo

Secretary General:

Sergio Abreu
(2020-2023 - 2023-2026)

Member States: Argentina, Bolivia, Brasil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay & Venezuela.

Observer States: China, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Italy, Japan, Nicaragua (on the path of becoming a member state since 2011), Pakistan, Portugal, Romania, Russia, San Marino, South Korea, Spain, Switzerland, Ukraine.

ALADI is the largest integration group in Latin America with 13-member states, together representing an area of 20 million square kilometers and a population of more than 510 million people.

The Latin American Integration Association (Asociación Latinoamericana de Integración – ALADI) is a regional organization established by the Treaty of Montevideo in 1980. Its primary objective is to promote economic integration among Latin American countries with the aim of enhancing trade and fostering stronger economic relations within the region. The organization’s headquarters is located in Montevideo, the capital city of Uruguay.

The fundamental principles of ALADI are defined in the Treaty of Montevideo and are as follows:

  1. Regional Economic Integration: ALADI’s ultimate goal is the establishment of a Latin American Common Market. It seeks to promote economic integration as a means to enhance prosperity and support development among its member states.
  2. Gradual and Flexible Progress: The treaty adopts the principle of progressive integration. Recognizing the economic disparities among member countries, it allows for differentiated commitments and measures tailored to each country’s level of development, thus applying the principle of flexibility.
  3. Non-Discrimination Among Members: Member countries are required to avoid discriminatory practices in their trade relations with one another. However, special treatment and privileges may be granted to less developed member states.
  4. Acceptance of Multilateral, Bilateral, and Partial Agreements: ALADI permits the conclusion of various types of trade agreements among its members, including multilateral agreements (involving all members), bilateral agreements (between two countries), and partial-scope agreements (covering specific sectors). This reflects a flexible and multi-format model of integration.
  5. Reduction of Social and Economic Inequalities: One of ALADI’s objectives is to mitigate development disparities among its member countries. To this end, it provides for special treatment and cooperation mechanisms for less developed members.
  6. Reduction of Protective Measures: Customs duties and other trade-restrictive measures among member states are to be progressively reduced, with the overarching aim of liberalizing intraregional trade.
  7. Cooperation and Technical Assistance: Beyond trade, ALADI also promotes scientific, technological, and technical cooperation among its members, fostering broader collaboration in various areas of development.

In summary, ALADI’s principles are centered around a flexible and gradual approach to economic integration, trade liberalization, the reduction of development disparities, and the promotion of solidarity and cooperation throughout Latin America.