Overview: In May 1969, the representatives of the governments of Peru, Bolivia, Ecuador, Colombia and Chile held a meeting in Cartagena of Colombia, and discussed the realization of economic integration in the small region. On the 26th of May, the "Agreement for the Economic Integration of the Small Region" was signed in Bogota, later known as the "Agreement of Cartagena". The agreement took effect on the 16th of October of the same year. As all members are the countries along the hillsides of the Andes Mountain Range, the organization is also known as the Andes Group or the Andes Treaty Organization. On February13, 1973, Venezuela joined the Treaty Organization. On October 30, 1976, Chile withdrew from the organization. In September 1992, Peru terminated its undertaking of economic obligations for the partner countries and in January 1996 the Peruvian Government announced its all-round joining in the Andes Integration System, taking up all responsibilities as a member state. On September 5, 1995, the seventh meeting of the President Council of the Andes Group decided to establish the Andes Integration System. On March 9, 1996, the name of the organization was changed to the present one, "the Andes Community" (La Comunidad Andina).

Aim: To promote the balanced and harmonious development of the member states by making full use of the regional resources so as to abolish the tariff-barriers among the member states and form a common market, thereby speeding up the process of economic integration. According to the regulations of the organization preferential treatment is given to Bolivia and Ecuador.

Member States: Five countries (January 2001), namely Peru, Bolivia, Ecuador, Colombia and Venezuela.

Countries and international organizations which have appointed their observers to the organization include: Argentina, Egypt, Australia, Austria, Paraguay, Brazil, Belgium, Denmark, Germany, France, Finland, Canada, the United States, Mexico, Yugoslavia, Japan, Sweden, Switzerland, Uruguay, Spain, Italy, India, Britain, Israel, the Republic of Korea, the Inter-American Development Bank, European Union, International Labor Organization, World Health Organization, American States Organization, and Panama, which is a country with a permanent observer accredited to the organization.

Headquarters: It is based in Lima, Capital of Peru.

Publication: The Andes Group ( Grupo Andino), a monthly magazine in Spanish.

Organizations: 1. President Council (Before 1995 it was called the Cartagena Treaty Commission): The supreme decision-making organ to decide on the development direction of economic integration with its meeting being held once a year. 2. Foreign Ministers Council: Made up of the foreign ministers of all member countries with meetings being held twice a year at least to coordinate the foreign policies of the member countries. 3. General Secretariat: It is an executive body of the Andes Community in replacement of the Cartagena Treaty Commission, and it has the right on behalf of the Community to open a dialogue with other integrated communities. The secretary-general is elected among the foreign ministers of the member states with his term of office being four years and is allowed to renew his office for once only. During his term of office the secretary-general is not permitted to hold concurrently any other post, and should not require or accept directives of any government or international organization. Should he commit serious mistakes he shall be dismissed from the post subject to the unanimous consent of all member states. 4. The Andes Community Committee: Composed of the plenipotentiaries appointed by the presidents of all member states. Together with the Foreign Ministers Council, the Committee is in charge of working out policies for economic integration, coordinating and supervising the implementation of the policies, and also has the right to call an enlarged meeting of other ministries to study and map out policies of the related ministries. 5. The Andes Parliament: Established on October 25, 1979, it is the consultative body of the Andes Community. Each member country has five members of parliament in this organization and the term of office should not exceed five years. The Parliament holds its regular meeting once every year, and its headquarters and standing secretariat are stationed in Lima, Capital of Peru.


Main Activities:

In May 1979, the presidents of the five member countries signed Cartagena Letter of Authority, which extended activities of the Andes Group from the economic field to the political field. In September, the Andes Group promulgated a joint statement at the sixth summit meeting of the Nonaligned Movement, declaring their adherence to the fundamental principles of the NAM. In October, the presidents or their representatives of the five countries signed the Panama Minutes, which supported the new treaty signed between Panama and the USA on the Panama Canal.

On April 5, 1982, a joint statement of the five countries was announced on the armed clashes between Argentina and Britain over the sovereignty of Malvinas Islands, which rendered full support for the stand of Argentina and denounced the economic sanctions imposed upon Argentina by the European Economic Community.

In January 1983, the Andes Group Committee decided to set up an entrepreneur's advisory committee and a labor consultative committee in order to attract private enterprises of member countries to participate in the development of economic integration. In March 1983, the Andes Parliament strongly condemned the foreign interference in the Central American affairs. In July, the Andes Court was officially established, with its main task being to mediate in disputes and exercise sanctions on the member state which failed to carry out the obligations included in the treaty.

In May 1984, the Andes Parliament passed the Lima Declaration, pointing out that the creditor and the debtor nations should take joint responsibilities for the foreign debts owed by the Latin American Region. It also called the developed countries to adopt a flexible and realistic attitude on renegotiating debts. In February 1986, ministers of economy of the five countries worked out a urgent program outline for stimulating internal trade in the small region and passed the policy to negotiate the revision of the Cartagena Agreement. In addition, the principle for revising the common rules for utilization of foreign investment was also worked out.

In May 1987, the governments of the five countries signed a protocol for revising the Andes Agreement. In the field of trade and tariff, the five countries decided to practice an exceptional tax-levy system on certain sensitive products among themselves, and impose a limited trade control system on some products. It was stipulated that the government of the member country had the right to adopt its own policy on foreign investment, and decide the sectors in which the foreign loans could be invested and the proportion of foreign enterprises' interests to be sent out of the country. The former No. 24 Resolution, which contained certain restriction for the foreign investment was replaced.

In July 1988, the Andes Group Committee sent a delegation to visit the member states, with the aim to urge the governments of the five countries to strengthen consultations and coordination, develop economic integration in an active and steady way, and absorb more private enterprises in their participation in the integration.

In May and December 1989, the Andes Group held two summit meetings respectively in Cartagena of Colombia and Galapagos Islands of Ecuador, and adopted a statement which called all member countries to coordinate their stands and take practical steps to accelerate the economic integration.

In March 1990, the Cartagena Agreement Committee announced that the five countries would lower the tariffs for foreign goods from the original minimum of 110% to 50%, and simplify the tax categories from nineteen to seven. In November, the fourth summit meeting adopted the La Paz Outline, which set the goal for the five countries to set up a free trade zone on January 1, 1992.

In December 1991, the sixth summit meeting approved the five countries' agreement on establishment of a free trade zone, and decided to adopt the unified tariff for foreign goods from January 1, 1992.

In April 1992, the seventh summit meeting was indefinitely postponed for Peru and Venezuela severed diplomatic relations. In June, the program for establishing a regional free trade zone was forced to put off, thus the Andes regional integration faced a serious crisis. In September, Ecuador and Bolivia accepted the unified tariff standard for foreign goods, and Colombia and Venezuela abolished the price subsidies for export. From 1993 the Andes Group became the first free trade zone in Latin America and in the world as well that were composed of the developing countries and adopt a unified tariff policy (except Peru).

In 1994, Peru partially restored its member state status. In May, the five member states reached an agreement on the unified tariff for foreign goods, that is an average tariff rate of 11.8% for the goods outside the free trade zone as of January 1, 1995 and divided the tariff into the four grades of 5%, 10%, 15% and 20% according to the goods categories. In November, the five countries signed a common tariff agreement for foreign goods, which stipulated that the agreement would enter into force as of February1, 1995, and thus the Andes Tariff Alliance declared itself founded.

In March 1996, the eighth summit meeting decided to establish the Andes Community and set up an integration system for the Andes countries with its member states unchanged.

In January 1997, the foreign ministers of the five countries expressed their support for the position adopted by Peru on the "hostage issue". During the period of April to June, Peru announced its withdrawal from the Andes Community because of its serious trade deficit and difference with other member states on the common tariff. But the withdrawal storm died down when a compromise on the tariff was made on both sides through negotiations. On 1 August, the Andes Community was officially put into operation.

In May 1999, the eleventh summit meeting made a decision that its objective was to establish a common market no later than 2005 and to carry out a common foreign policy step by step.

In 2000, the twelfth summit meeting reiterated the objective of integration to establish the Andes common market by the end of 2005. The summit also decided to establish trust mechanisms in the fields of anti-drug, anti-corruption, security and democracy, to carry out a common foreign policy and to make out concrete measures of implementing social development plan.

In 2001, the thirteenth summit meeting decided to speed up the agenda of Andes integration so as to establish the common market by 31 December 2005. The summit also made a decision to gradually expand the flowing of personnel among regional countries. From January 1, 2002, the member states would recognize the individual IDs issued by other countries and the unified Andes passports would be issued no later than 31 December, 2005. The negotiations with the South Common Market on the establishment of a free trade zone should be completed before January 2002.

On Jan. 30, 2002, a special summit of the Andes Community was held in Santa Cruz, Bolivia. Presidents of 5 member states of the Andes Community participated in the summit. Integrating process of the Andes Community was mainly discussed at the summit. Agreement was reached over implementing a unified external tariff, a common agricultural policy and further coordinating their foreign policies before Dec. 31, 2003 "Santa Cruz Declaration" was issued at this summit.

Foreign Relations: The Andes Community established successively the mixed committees with Mexico (October, 1972), Argentina (November, 1972), Spain (June, 1973), and the European Economic Community in (December, 1983), and signed an agreement on cooperation with Panama. In January 1979, the foreign ministers of the five countries signed a memorandum of understanding with Cuba and decided to set up a permanent consultative body. From April 1981, the USA began to render favorable tariff treatment to the Andes Group. In July 1977, the Andes Group issued a joint communiqué with the EEC with a view of strengthening bilateral economic cooperation. In 1983 the two sides signed the first 5-year agreement to strengthen their cooperation in the political and economic fields. In June 1999, the European Union decided to prolong its favorable treatment to the countries of the Andes Group to the year of 2004. In October 1983, the Andes Group signed an agreement with the Latin America Economic Committee to fully cooperate in finance and international negotiations over economic issues. In November 1985, the Andes Group held the first meeting in San Jose with the member states of the Central America Common Market, and discussed the questions on how to strengthen the trade relations between two organizations. In April 1998, the Andes Community signed a framework agreement with Panama on establishing a free trade zone through negotiations. On April 16 of the same year, it signed another framework agreement with the South Common Market, and decided to establish a free trade zone between the two groups as of January 1, 2000. However, there has been no significant development in the negotiations. Brazil, member state of the South Common Market, reached an agreement on the favorable tariff treatment with the Andes Community.

Relations with China: In January 1999 China reached agreement on establishing consultation mechanism with the Andes Community. In May 1999 President Jiang Zemin sent a message of congratulations to the summit of the Andes Community on the 30th anniversary of the founding of the organization and also appointed the Chinese ambassador to Colombia to attend the meeting on his behalf.

On March 30, 2000, Chinese Foreign Minster Tang Jiaxuan, together with Dterasagnes, Peruvian Foreign Minister and President of Foreign Minister Council of the Andes Community, signed in Beijing the Agreement on the establishment of a political consultation and cooperation mechanism between the People's Republic of China and the Andes Community. The agreement took effect from the date of signature and will be effective indefinitely.

On Oct. 21, 2002, Foreign Minister Tang Jiaxuan held the first political consultation with the foreign ministers of 5 member of the Andes Community in Bogota, capital city of Columbia. Both sides exchanged views on relations between China and the Andes Community and cooperation over major international issues.