Follow important business development in the Andean Community of Nations to understand the future of trade access in Latin America. As a company looking to expand into Latin America, consider the opportunities generated by powerful regional trade agreements, and how your business operating within Latin America can access important consumer markets abroad.
Nine countries in Latin America are part of the Andean Community. It is important to know about business opportunities this great trade alliance has to offer exporters and importers in Latin America.
Gain more insight into this regional trade environment that is growing quietly at a rapid pace.
What is the Andean Community of Nations?
On May 26, 1969, five South American countries (Bolivia, Colombia, Chile, Ecuador, and Peru) signed the Cartagena Agreement, an agreement aimed at improving the standard of living of the countries’ populations through regional integration and economic and social corporation. The Cartagena Agreement eventually formed the Andean Community of Nations (Comunidad Andina).
The Andean Community of Nations is a regional bloc, made up of these 5 countries, that intends to stimulate industrial, agricultural, social, and trade development, through greater regional integration.
In a collaboration agreement with Mercosur, the Andean Community added four new partner members: Brazil, Paraguay, Argentina, and Uruguay. These four Mercosur members were granted associate membership by the Andean Council of Foreign Ministers on July 7, 2005.
Trade benefits within the group
The Andean Community of Nations is a bloc that focuses to improve and achieve a healthy business environment between the member countries. Being an entrepreneur in a country that is a member of the Andean Community of Nations comes with several benefits:
- It opens markets for goods, services, government procurement, and investment.
- Better conditions for trade through new rules on non-tariff barriers, competition, transparency, and intellectual property rights.
- The Andean Community of Nations offers a steadier and more expectable environment for entrepreneurs with a bilateral dispute settlement mechanism and a mediation system for non-tariff barriers.
- Arrangements and protection for cooperation on competitiveness, innovation, production modernization, trade facilitation and, technology transfer.
- A comprehensive Trade and Sustainable Development chapter with commitments aimed to ensure high levels of labor and environmental protection, which includes a transparent arbitration system and procedures to engage with civil society.
Business development in the Andean Community of Nations: modernizing member countries
Bolivia, Colombia, Ecuador, and Peru will start eliminating international roaming rates in voice and data communications was said on the 19th of June 2020. Currently, the process is in the beginning stage so the countries will have to set it up before it will actually start working. This move aims to boost integration and modernization between the countries of the Community of Andean Nations.
Roaming charges are fees to be paid when mobile users travel international and must use data outside of their domestic data bundle. A common issue experienced by travelers occurs when they leave their home network and roam on foreign networks, accumulating unexpected roaming charges.
In July last year, Mercosur members Brazil, Argentina, Uruguay, and Paraguay agreed to end international roaming rates between the economic bloc. Now, The Andean Community of Nations has decided to get on board with this decision. This announcement came together with the 50th anniversary of the organization in Cartagena(19 June 2020).
Removing international roaming charges among some of the largest and most active economies in South America is set to ease individuals’ travel between them. This is especially helpful for lowering the costs of business travel. Eliminating roaming charges among the CAN will enable lower cost of travel for 111 million Andean citizens and promote further social and commercial activity between member countries.
One of the mechanisms proposed by the Cartagena Agreement to meet the objectives of the Andean integration process is to achieve full physical integration of the Andean community territory. The interconnection of the electrical systems of the Member Countries and the intra-community exchange of electricity is one tool the bloc has identified that will allow member nations to achieve this.
An interconnected electrical system among member countries of the CAN will lead to the optimization of energy resources, security, and reliability of electricity supply.
In 2003, the Andean Committee of Export Promotion Authorities was created. This committee is responsible for the Andean for sub-regional strategies for the Promotion of Exports. This committee will develop joint programs and projects to increase intra-regional trade and its participation in world trade.
Set up a trade business in the Andean Community of Nations with a trusted expert
The Andean Community of Nations is set to boost its modernization between the community. They generate preferential trade conditions for exporters and importers operating within the region. Foreign entrepreneurs that are to do business in one of these Andean countries should work with experienced, leading market entry and trade law specialists to start their expansion successfully.
At Biz Latin Hub, our trade law specialists in Latin America can give the best advice on how to conduct business in the country that you want to settle in. Our team gives full support on back-office services for making it easy for you to start your business as soon as possible. Contact us today at here for more information about business development initiatives in the Andean Community of Nations.
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