Cooperation and Regional Integration in Latin America and ... · World politics Evolution of Foreign Trade in the LAIA countries Overall, foreign trade in the LAIA member countries

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Cooperation and Regional Integration in Latin America and The Caribbean 2010

ORGANISMS AND MECHANISMS OF COOPERATION AND INTEGRATION IN LATIN AMERICA AND THE CARIBBEAN

UNASUR

Andean Community, CAN (1996)

Caribean Community, CARICOM (1973)

Central American Common Market, CACM (1960)

Common Market of the South, MERCOSUR (1991)

North American Free Trade Agreement, NAFTA (1992)

Central American Integration System, SICA (1993)

LAIA: Mexico, Cuba, Chile, countries of the Andean Community and Mercosur

IBERO-AMERICAN COMMUNITY: Andorra, Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Equador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Portugal, Dominican Republic, Spain, Uruguay and Venezuela

RIO GROUP: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Equador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Dominican Republic, Surinam, Uruguay and Venezuela

OAS: all the American independent States except Cuba

Colombia

Peru

Bolivia

Chile

BelizeHonduras

NicaraguaEl Salvador

Guatemala

CostaRica

Panama

Surinam

Paraguay

Guyana

Uruguay

Equador

Argentina

Venezuela

United States

Canada

United States

Mexico

Bahamas

Cuba

Jamaica

Haiti

Dominican Rep.

Brazil

Trinidad & Tobago

Saint Vicent & Granadines

Grenada

Barbados

Dominica

Antigua & Barbuda

Saint Kitts & Nevis

Saint Lucia

Montserrat

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Evolution of Foreign Trade in the LAIA countries Overall, foreign trade in the LAIA member countries showed

recovery in 2010 with a rise in exports of almost 30%, con-

firming that improvement in the international setting favoured

Latin American countries through commerce. Country com-

parison reveals that the increases have been generalised and

with quite similar percentages (with the exception of Para-

guay with 43.2%). However, in absolute terms, the greatest

increase was displayed by Mexico (69,000 million dollars),

followed by Brazil (49,000), Chile (17,000) and Argentina

(13,000), these four countries totalling between them more

than 85% of the upswing in overall sales (see Table I).

In the case of imports as a whole, showing an increase bor-

dering on 34% for all the LAIA countries in 2010, the boost

in demand can be explained by the recovery of economic

activity in the region. Country comparison shows generalised

improvement, although with rather varying incidence in which

three countries (Argentina, Brazil and Paraguay) show growth

rates exceeding 40%. In absolute terms, the list was again

topped by Mexico (67,000 million dollars), after which come

Brazil (54,000), Argentina (18,000) and Chile (14,000),

these four countries accounting for 85% of the increase in

overall purchases (see Table II).

Recovery in 2010 was also registered in intraregional

trade, with data showing that the slump of 2009 is practical-

ly surmounted. According to LAIA figures, trade between the

member countries rose by approximately 30% with both ex-

ports and imports, along the lines of the ascendant tendency

in worldwide trade. In the case of exports, the most dynamic

sales were those of Mexico (49.7%) and Peru (42%), in con-

trast with Colombia, which showed a slight downturn of 10%.

As for imports, the biggest expansion in purchases occurred

in Argentina (45.1%), Paraguay (37.2%) and Brazil (35.5%),

while Uruguay’s scale of imports (6.5%) was the most mod-

est (see Tables I and II). Then again, from the standpoint of

exchanges between the different blocks of regional integra-

tion, the results also demonstrate considerable recovery in

trade between the members of the Southern Common Mar-

ket (MERCOSUR) and those of the Andean Community as

well as between the two blocks. Equally significant has been

the expansion in trade between MERCOSUR and Mexico and

Chile, between the Andean Community with these two coun-

tries and, finally between the two countries (see Table III)

ANDEAN COMMUNITY (AC)

Evolution of tradeAccording to the statistical estimates of the General Sec-

retariat of the Andean Community, which generally coincide

with those of ECLAC and LAIA data, the figures for foreign

trade in 2010 of the present members of the Andean Com-

munity (Bolivia, Colombia, Ecuador and Peru) reveal a signifi-

cant degree of recovery. Exports as whole increased by 26%,

this mainly being the result of price rises in mining products

and crude oil and derivates, while with agricultural and fishing

products the increase was more moderate. Country com-

parison shows that Peru (32%) achieved the best results fol-

LATIN AMERICAN ASSOCIATION OF INTEGRATION (LAIA)

Evolution of GDP and the external sector of the Latin American CountriesThe economies of the countries of Latin America and the Car-

ibbean consolidated the trend to recovery observed at the end

of the previous year and, on average, showed a significant

GDP growth of approximately 6%. This conclusion published

in the Preliminary Overview of the Economies of Latin America

and the Caribbean 2010, which is produced by the Economic

Commission for Latin America and the Caribbean (ECLAC),

coincides with IMF and the United Nations Department of Eco-

nomic and Social Affairs trend analyses. There were internal

factors that aided recovery in this Latin American return to

growth, essentially the economic stimulus methods adopted

by the governments of the region. It was also influenced by

several external factors, beginning with the improvement in

worldwide growth and international trade, together with in-

creased Foreign Direct Investment (FDI) and emigrant remit-

tances. According to IMF estimates, GDP growth worldwide

stood at a figure of 5% for 2010 while WTO estimates show

a 13% increase in international trade.

For all that, the ECLAC report also shows considerable

variation in the GDP findings for the different Latin Ameri-

can countries. Notable here is a group of seven countries

that showed very vigorous growth, led by Paraguay (9.7%),

Uruguay (9%), Peru (8.6%) and Argentina (8.4%), followed

closely by Brazil (7.7%), Dominican Republic (7%) and Pana-

ma (6.3%). Next came four countries (Colombia, Costa Rica,

Chile and Mexico) also showing a considerable upswing rang-

ing from 4% and 5.3%, while another six countries (El Salva-

dor, Guatemala, Honduras, Nicaragua, Ecuador and Bolivia)

showed more moderate growth, from 1% to 3.5%. Finally,

Venezuela appeared with a negative figure of -1.6% and, in

Haiti, the earthquake aggravated the GDP downtrend to a

figure of -7%.

With regard to the evolution of foreign trade of the Latin

American countries, the ECLAC data show that recovery was

more marked with imports than with exports of goods and

services. With the trade in goods, the increase was of the

order of 25.5% in exports and 28.4% in imports while, in the

case of services, the trend was more moderate with a rise of

9.21% in exports and 19.6% in imports. As for the final bal-

ance for goods and services, the result was almost zero with

a persisting tendency towards deterioration. Finally, although

there was an improvement in remittances from emigrants,

the deficit in the current account balance endured, this being

estimated at about 1.1% of regional GDP for 2010.

Analysis of price trends and volumes of products exchanged

show differing results depending on the nature of each ele-

ment. In exports of mining products, and crude oil and deri-

vates the main increase in sales figures can be attributed

to price rises, while with exports of agricultural, fishing and

manufactured products the increase is explained by a greater

volume of sales. Imports rose as a result of the purchase of a

larger volume of manufactured goods, these being products

that traditionally tend to have more stable prices.

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0TABLE I. LAIA COUNTRIES EXPORTS

(million $)

To LAIA countries Total World

2009 2010 % variation 2009 2010 % variation

Country 2010/2009 2010/2009

Argentina 22,979 28,064 22.1 55,669 68,500 23.0

Bolivia 3,173 4,166 31.3 5,453 6,957 27.6

Brazil 29,897 41,202 37.8 152,995 201,915 32.0

Chile 8,473 10,956 29.3 49,938 67,425 35.0

Colombia 8,078 7,261 -10.1 32,853 39,820 21.2

Equador 3,296 4,227 28.2 13,799 17,369 25.9

Mexico 10,090 15,109 49.7 229,783 298,361 29.8

Paraguay 2,196 3,048 38.8 3,167 4,534 43.2

Peru 3,731 5,299 42.0 26,625 35,073 31.7

Uruguay 2,056 2,808 36.6 5,405 6,733 24.6

TOTAL1 93,969 122,140 30.0 575,687 746,687 29.7

1. Produced from data of the country informant. Information from Cuba and Venezuela not included. Source: ALADI Produced by: CIDOB

TABLE II. LAIA COUNTRIES IMPORTS

(million $)

LAIA countries origin World origin

2009 2010 % variation 2009 2010 % Variación

Country 2010/2009 2010/2009

Argentina 15,499 22,487 45.1 38,781 56,443 45.5

Bolivia 2,542 3,000 18.0 4,467 5,366 20.1

Brazil 21,944 29,744 35.5 127,722 181,649 42.2

Chile 12,389 16,010 29.2 38,826 52,872 36.2

Colombia 8,279 10,761 30.0 32,898 40,683 23.7

Equador 5,526 6,470 17.1 15,093 19,961 32.3

Mexico 8,133 9,621 18.3 234,385 301,482 28.6

Paraguay 3,153 4,326 37.2 6,497 9,400 44.7

Peru 7,078 8,935 26.2 21,815 29,880 37.0

Uruguay 3,883 4,135 6.5 6,907 8,622 24.8

TOTAL1 88,426 115,489 30.6 527,391 706,358 33.9

1. Produced from data of the country informant. Information from Cuba and Venezuela not included. Source: ALADI Produced by: CIDOB

TABLE III. TRADE FLOWS AMONG DIFFERENT ORGANIZATIONS AND LAIA MEMBER STATES

2009 (million $) % 2010

(million $) % Variation 2009/2010 %

Intra-MERCOSUR 32,655 38.2 43,655 38.3 33.7

MERCOSUR-Chile 11,589 13.5 15,410 13.5 33.0

CAN-MERCOSUR 12,481 14.6 16,282 14.3 30.5

Intra-CAN 6,541 7.6 8,853 7.8 35.3

MERCOSUR-Mexico 9,140 10.7 11,896 10.4 30.2

CAN-Mexico 4,957 5.8 7,441 6.5 50.1

CAN-Chile 5,383 6.3 6,417 5.6 19.2

Chile-Mexico 2,831 3.3 4,001 3.5 41.3

TOTAL1 85,577 100 113,955 100 33.2

1. Information from Cuba and Venezuela not included. Source: ALADI Produced by: CIDOB

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Presidents on 14 July 2007 in Tarija, Bolivia. Moreover, one

of the participants in this meeting was the Chilean president,

Michelle Bachelet, thus consummating the incorporation of

her country as an associate member of the Andean Com-

munity.

However, the respite was short-lived and discrepancies

once again emerged, these being defined by the president

of Ecuador, Rafael Correa, as serious asymmetries. The

Andean Community members have different conceptions of

joining the international sphere, apart from other particular

disagreements of a bilateral nature that have raised situa-

tions that are difficult to reconcile. On the one hand, with

regard to the international question, there are two countries

that have signed a Free Trade Agreement with the United

States (Peru and Colombia), while Bolivia and Ecuador de-

clined to sign such an agreement. On the other hand, there

are tensions in the bilateral relations between Bolivia and

Peru, while relations between Ecuador and Colombia were for

some time frozen for political reasons that were exacerbated

by a border conflict.

It was in these circumstances that the fortieth anniversary

celebrations of the signing of the first Cartagena Agreement

were held in 2009. This agreement was the one that origi-

nally gave shape to the first organism of Andean integration

and, in the commemorative activities, it was recalled that

the process of integration had gone through other crises

and that these had been dealt with through appeals to prag-

matism. In any case, the flow of institutional relations has

been partially blocked and it has not been possible to hold

the regular Presidential Council meetings. For the time be-

ing, institutional continuity is jointly maintained by the An-

dean Council of Foreign Ministers, the General Secretariat

of the AC and the temporary Secretariat, which is renewed

each year with the member countries alternating in the

chair, while the agenda of contents is discussed in periodical

thematic meetings of representatives of the member states

attended by ministers from the relevant area and other sec-

ond-level officials.

The difficulties in institutional relations have not favoured,

either, the lines of political cooperation that the AC member

countries have adopted at other times with a view to imple-

menting a joint foreign policy. In this regard, inertia would

seem to be holding sway and there are no major advances in

relations with the United States. The only significant event for

2010 is the renovation of the Andean Trade Promotion and

Drug Eradication Act (ATPDEA), which benefits Colombia, Ec-

uador and Peru. As for the European Union, the negotiations

en bloc in order to reach trade agreements were abandoned

in 2009 and bilateral negotiations with Colombia and Peru

began, these concluding in March 2010 with the signing of

EU agreements with these two countries. A summit between

the Andean heads of state and the heads of state in the

European Council, the European Commission, and the rotat-

ing EU president was held on 19 May in Madrid. Among the

matters discussed were questions on the bi-regional agenda

– in particular environmental issues, migration and the fight

against drugs – and a commitment to continuity of political

dialogue and cooperation was reaffirmed.

lowed by Bolivia (28%), Ecuador (26%) and Colombia (21%).

With imports, the growth trend was also generalised with

considerable variation among the four countries. Peru (37%)

accounts for the largest rise in imports as a whole, followed

by Ecuador (32%), Colombia (24%) and Bolivia (20%).

Intraregional trade also showed very favourable recovery

estimated at about 35%. Hence the export quota among

the AC members slightly improved in comparison with global

exports so that it now stands at almost 8%, which is the

pre-slump figure from before 2009. In the country-by-country

reckoning, Colombia (45%) showed the largest rise in sales

to its neighbours, while also having the highest quota of par-

ticipation in AC trade as a whole, and is followed by Ecuador

(35%), Peru (29%) and Bolivia (19%). Bilateral trade flows

between the AC countries are once again irregular. First,

Bolivia’s sales to Ecuador show a steep climb of 85% even

though the volume of exchange is still the lowest. In terms of

its chief clients the increase in sales to Peru (35%) was very

substantial, although sales to Colombia showed no move-

ment. From the standpoint of purchases, the results reveal

stagnation in the case of Ecuador, where the volume is low

while, with Bolivia’s main suppliers, there was an increase of

21% with Colombia, and 22% with Peru. Second, Colombia,

records a steep rise in sales (45%) with its two main clients

(Ecuador and Peru) and a more moderate increase with Bo-

livia (18%). In the case of imports, the trend was similar

with 26% of purchases coming from Peru, after which came

Ecuador (29%) and then Bolivia (10%). Third, in its exports

Ecuador had its best result with its chief buyer (Peru), show-

ing an increase of 45%. Also considerable was the upsurge

in sales to Bolivia (37%), although by volume of exchange this

country is third on the client list, while exports to Colombia

rose by 20%. In the case of imports into Ecuador, acquisi-

tions from Bolivia multiplied sevenfold, although the baseline

level was very low. More significant was the 27% increase of

imports from Colombia, its main supplier while, with Peru,

the rise was 35%. Finally, although Peru has a slightly more

balanced structure of trade with its partners, it also showed

differential growth in its exports. Heading the client list was

Ecuador with a rise of 51%, followed by Bolivia (22%) and

then Colombia (15%). In contrast, with imports the average

growth of purchases from its neighbours was more even-

handed, ranging from 30% to 40%.

Institutional activities, agenda for integration, political co-operation and joint foreign policyThe Andean regional organism is passing through a delicate

time due to discord among its members and also some insti-

tutional debility. There is agreement in signalling that one of

the factors triggering the present situation occurred in April

2006 when Venezuela denounced the Cartagena Agreement

and withdrew from the Andean Community. A year went by

during which it was necessary to make the necessary ad-

justments with the representation of the countries in the ju-

risdictional organs and organisational structure, whereafter

it seemed that the institutional machinery was functioning

properly again. One example of this return to normal func-

tioning was the holding of the Seventeenth Council of Andean

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0

ter the earthquake and the urgent need for reconstruction in

the country. The heads of state emphasised the importance

of boosting financial aid and the fact that this should be given

directly to the Haitian government so it could be channelled

without intermediary delays to areas identified as priority (agri-

culture, infrastructure, governance and health). Another issue

dealt with was the economic evolution of the Caribbean coun-

tries following the consequences of the international crisis.

Since the presidents of the World Bank and the International

Development Bank (IDB) also attended the meeting, discus-

sions were held with both about initiatives for improving the

foreign debt standing of the Caribbean countries and also con-

cerning the fund for financing activities aimed at ameliorating

and preventing the consequences of climate change. Finally,

the CARICOM leaders reiterated their concern over the levy on

airline tickets introduced by the United Kingdom, which puts

the Caribbean countries at a disadvantage vis-à-vis other tour-

ist destinations.

Subsequently, from 4 to 7 July, the Thirty-first Regular Meet-

ing of the Conference of Heads of Government of the CARICOM

Community was held in Montego Bay, Jamaica. Prominent

among the main items on the agenda was an assessment of

the evolution of, and challenges faced by, the CARICOM Single

Market and Economy after presentation of the most recent re-

port. In addition, analysis was made of the impact of the inter-

national crisis in the development of the Caribbean economies,

especially with regard to agriculture and tourism. Questions

of security and climate change were also discussed together

with the sub-region’s foreign trade negotiations. Finally, a CARI-

COM report on aid given to Haiti was presented and the lead-

ers analysed the situation in the country. It was also agreed

to facilitate the movement of Haitian entrepreneurs within the

Caribbean Community and to establish non-reciprocal trade

for a series of goods as well as providing institutional technical

support. With respect to the presidential and legislative elec-

tions in Haiti slated for the end of the year, a commitment was

made by CARICOM to participate in the international support

mission.

Foreign RelationsThe Caribbean countries share a foreign relations agenda that

is debated and articulated at the institutional level in an organ

known as COFCOR (The Council for Foreign and Community Re-

lations). The Thirteenth Annual Meeting of this body was held

in Dominica on 5 and 6 May and considerable attention was

given to evaluating the crisis in Haiti after the catastrophe of

the earthquake and the response of the Caribbean countries

regarding the country’s reconstruction. Other items on the

agenda included consensus between the Caribbean countries

over negotiations on climate change after the Copenhagen

Summit, relations with third countries and groups of coun-

tries, the state of play of geopolitical changes in America, and

the prospects for CARICOM arising from reforms to the United

Nations and the international financial institutions.

Several other summits were also held during the year, these

being attended by the CARICOM heads of state and leaders

of other countries of the Americas – Mexico, Brazil and the

United States – and with the European Union. The first took

THE CARIBBEAN COMMUNITY (CARICOM)

Evolution of the economy, the external sector and integra-tionThe economies of the Caribbean countries showed quite an

irregular performance in 2010 although most of them consoli-

dated the tendency to recovery observed at the end of 2009

and achieved slight growth. According to the Preliminary Over-

view produced by the Economic Commission for Latin America

and the Caribbean (ECLAC), the average figure for GDP growth

of the Caribbean Countries was 0.5%. Among the factors fa-

vouring recovery was a slight advance in tourist activity and

increased remittances from the region’s emigrants, although

the prices of raw materials were still subject to the volatility of

the times of crisis.

However, a breakdown and analysis of the data for the Carib-

bean countries reveals that GDP growth is quite varied and

uneven. First, there are three economies that are expanding

at a faster pace of between 2% and 3% (Belize, Guyana and

Surinam). Next is a group consisting of the Bahamas, Domi-

nica, Granada, Saint Vincent and the Grenadines, Saint Lucia,

and Trinidad and Tobago, where the GDP rise has been very

small, between 0.5% and 1.4%. Then there are two countries

showing a moderate downturn in GDP – Barbados (-1%) and

Saint Kitts and Nevis (-1.5%) – while the drop for Antigua and

Barbuda was greater (-4.1%). Finally, in Haiti, the consequenc-

es of the earthquake exacerbated the GDP decline, the figure

here being estimated at -7%.

With regard to the evolution of the external sector of the

CARICOM countries in 2010, the ECLAC Overview data on the

international integration of Latin America and the Caribbean

also show an uneven performance. In goods exports the an-

nual growth rate has improved a little, in particular with the

advances made by Jamaica and Surinam. However, the sales

of Trinidad and Tobago are still stalled. Again, with exports

of services, the picture has been quite unchanging for the

majority of countries although slight gains have been made by

the Bahamas and Jamaica. Accordingly, with the exception of

Surinam and Trinidad and Tobago, the negative figures of the

current account balance still held.

As for the evolution of trade integration, the ECLAC Overview

data indicate that there has been some progress in recent

years in comparison with the previous decade. Participation

in the export trade by the CARICOM members with regard to

the exports total went from 10% in the period from 1991 to

1994 to 15% in the period from 2005 to 2008. However,

the lead taken by Trinidad and Tobago has also increased no-

tably from a quota of 55% of the total intraregional exports

in 1990 to 80% in 2008. As a result, Trinidad and Tobago

has registered large surpluses in exports of gas, crude oil and

derivatives to its neighbours, while the smaller countries of the

East Caribbean have considerable deficits.

Institutional activitiesThe Heads of State and Government of the Caribbean Com-

munity (CARICOM) countries held their Twenty-first Interim

Meeting on 11 and 12 March in Dominica. One of the most

pressing matters on the agenda was the situation in Haiti af-

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the Spanish acronym) and the Organisation of Ibero-American

States for Education, Science and Culture (OEI in the Spanish

acronym).

With respect to the meetings of members of civil society and

the high-level forums in 2010, there were four noteworthy

encounters. In chronological order, the first was held between

15 and 16 October in Mar del Plata (Argentina), venue for

the Fifth Ibero-American Local Government Forum which was

held with a view to discussing education for social inclusion.

Shortly afterwards, on 11 and 12 November, the Sixth Ibero-

American Parliamentary Forum was held in Buenos Aires, this

being attended by the legislative representatives of the coun-

tries comprising the community. At the meeting of senators

and members of parliament, discussion was organised around

four mainstays: access, permanence and obligatoriness in the

educational system; the new information and communication

technologies in education; educational pluralism and quality

schooling; and integral funding of the educational system. Fi-

nally, on 2 and 3 December, was the concurrent holding in

Mar del Plata (Argentina) of the Sixth Ibero-American Civic En-

counter and the Sixth Ibero-American Business Meeting. Dis-

cussion at the Civic Encounter was concerned with two main

themes, one dealing with educational access and the right to

education and the other with participation of networks, unions

and social organisations in regional education, as stated in

the final declaration. At the Business Meeting, several themes

were dealt with and subsequently detailed in the document

of conclusions. Notable among these are efforts to improve

and introduce innovations into productivity and productive di-

versity, the development of global Ibero-American enterprises,

the complementary needs between Ibero-America and Asia in

furthering economic relations and, finally, an appeal addressed

to the developed countries to avoid financial upheavals that

negatively affect economic growth.

In the case of sectoral ministerial meetings, twelve encoun-

ters were held in 2010 attended by ministers from different

spheres discussing matters of interest in Agriculture, Health,

Childhood and Adolescence, Public Administration and Govern-

ment Reform, Tourism, Education, Housing and Urban Devel-

opment, Culture, Work, Justice and Youth. At each of these

sessions discussion centred on issues featuring on a joint

agenda of cooperation, and agreement was sought on decla-

rations pertaining to the different spheres of activity and the

recommendations were addressed to the Secretary General

and the Heads of State and Government.

The core event, the meeting of Heads of State and Govern-

ment of the 22 countries of the Community, took place with

the Twentieth Ibero-American Summit held on 2 and 3 De-

cember in Mar del Plata (Argentina). Notable for his absence

at the Summit was Rodríguez Zapatero, this being the first

time that a Spanish Prime Minister had failed to attend this

meeting together with King Juan Carlos. His absence was due

to problems of financial turbulence arising from the economic

crisis which obliged him to remain in Spain to lead a Council

of Ministers at which crucial decisions had to be taken. With

the exception of Rafael Correa of Ecuador, other outstanding

absences were those of the heads of state of the Bolivarian

Alliance for the Peoples of Our America (ALBA), who offered

place on 21 February in Cancun, Mexico, with the aim of mak-

ing progress in bilateral cooperation in the domains of trade

and development. Other themes discussed were bilateral co-

operation in aiding Haiti and the debate over the Convention

on Climate Change. The second summit was held on 26 April

in Brasilia with an agenda featuring bilateral commitments

favouring peace and security as well as democratic develop-

ment. In the sphere of economic relations several agreements

on technical cooperation were signed and Brazil also under-

took to contribute funds to the Caribbean Development Bank.

Then again President Lula declared his support for negotiat-

ing a free trade treaty between MERCOSUR and CARICOM.

With regard to the United States, a ten-year extension was

approved in April for the US law regulating the trade facilities

conceded to the Caribbean Countries, the Caribbean Basin

Trade Partnership Act (CBTPA). In June, an informal meeting

was held between the US Secretary of State Hillary Clinton and

her counterparts in CARICOM and the Dominican Republic at

which the commitment to cooperation for development and se-

curity in the Caribbean Basin was renewed. Finally, on 18 May,

there was a meeting in Madrid attended by the heads of state

of the member countries of CARIFORUM and the presidents

of the European Council, the European Commission and the

EU rotating Presidency. The relaunching of political dialogue,

which began with the meeting on 23 March in Kingston, Ja-

maica, was positively appraised, as were the advances being

made towards a new joint EU-Caribbean strategy.

THE IBERO-AMERICAN COMMUNITY (CIB)

Institutional activity and agenda for dialogue and coopera-tionBy means of the mechanism for dialogue, coordination and

cooperation established by the member countries of the Ibero-

American Community (CIB, in its Spanish acronym) a set of

institutional activities is carried out every year at different lev-

els and with dealing with different thematic areas. First and

foremost, and of outstanding relevance, is the annual sum-

mit of the Heads of State and Government, where the main

lines of the agenda are drawn up, resolutions are agreed upon

and plans of action are established; next are the ministerial

meetings by sector where the agenda corresponding to each

thematic area is negotiated; then, also noteworthy, are the

meetings of civil society and other high-level forums, these

constituting a third mainstay of the Community of Ibero-Amer-

ican countries and a space for discussion of issues that are

subsequently taken up to the presidential meetings for their

consideration. Likewise, also to be borne in mind are the many

projects for cooperation that are implemented on an annual

basis with the backing of the Ibero-American Summit of Heads

of State and Government. Finally, work for institutional con-

tinuity is carried out within the organisms pertaining to the

Ibero-American Conference, for example the Ibero-American

General Secretariat (SEGIB in the Spanish acronym) and other

Ibero-American intergovernmental organisations such as the

Ibero-American Social Security Organisation (OISS in the Span-

ish acronym), the Ibero-American Youth Organisation (OIJ in

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of state who are pushing for the creation of a Community of

Latin American and Caribbean States. The host in 2010 was

Mexico and the presidential summit was held on 23 February

in the Mayan Riviera with the attendance of representatives of

all the Latin American countries with the exception of Hondu-

ras, which was not invited.

As tends to happen with this type of gathering, the agenda

was wide-ranging and among the themes discussed at the

Mexican Summit, which are brought together in the Cancun

Declaration, those referring to cooperation among regional and

sub-regional mechanisms of integration are particularly promi-

nent. Second, were the issues on the economic agenda, from

the effects of the international crisis to other matters such as

trade, energy, physical integration, infrastructure, along with

science and technology. The third set of items on the agenda

consisted of social development questions, with programmes

addressing hunger and poverty eradication, food and nutrition-

al security, education, health, culture, migration and gender

issues. A fourth block was concerned with sustainable develop-

ment, climate change and natural disasters and, finally, there

were other areas of concern such as human rights, security

matters, drug problems and terrorism. At this summit, the po-

litical leaders decided to incorporate the Montego Bay plan of

action, which had been agreed upon by the Rio Group Foreign

Ministers in 2009, with the aim of implementing the themes

on the Latin American and Caribbean agenda.

Foreign relationsThe Rio Group also acts as a space of coordination in some

areas of the foreign relations of the member countries, out-

standing among these being the bi-regional relationship with

the countries of the European Union. In particular, biennial

meetings at the ministerial level are held with a view to eluci-

dating items on the common agenda while, in the alternating

year, the participants have the occasion to meet again in the

course of the summits of the Heads of State and Government

of the countries of Latin America, the Caribbean and the Eu-

ropean Union. In 2010 this was held in Madrid. Featuring in

the Declaration of Madrid, besides matters that reinforce the

commitment to make progress with the bi-regional associa-

tion, is the consensus achieved on the issues discussed on

this occasion, these including innovation and technology for

sustainable development and social inclusion. A plan of action

for implementing the agenda during the period from 2010 to

2012 was also agreed upon.

THE CENTRAL AMERICAN COMMON MARKET (CACM / CENTRAL AMERICAN INTEGRATION SYSTEM (SICA)

Evolution of tradeThe Central American countries benefited from improve-

ments in the international sphere and foreign trade showed

some recovery, although at levels below the average for

Latin America and with a wider gap between performance

in imports and that in exports. According to data offered by

the Secretariat for Central American Economic Integration

different explanations to justify their non-attendance. Finally,

Honduras was not represented either since President Lobo

was not formally invited by the host country.

Discussion at the meeting ranged over the many themes on

the agenda. Foremost among the most relevant results was

the Declaration on “Defence of Democracy and Constitutional

Order in Ibero-America”, in which it is established that the

Ibero-American Community undertakes to adopt measures

that extend to the suspension of participation of any country

in which there is a breakdown in constitutional order or rule of

law. Second, is the notable adoption of the educational project

“Metas 21” (Goals 21), this constituting a statement of the

objectives of the Summit which was devoted to “Education with

Social Inclusion”. This programme includes a commitment to

mobilise 100,000 million dollars in the period to 2021, with a

plan of implementation that aims to bring about a high-quality

education that will facilitate the progress of social inclusion

and achieve full literacy by 2015. Another proposal was to at-

tain universal coverage in primary and secondary schooling to-

gether with employing the new technologies with a view to pro-

viding a high level of education to more and more generations

of the people of Latin America. The Summit also approved

other programmes with the aims of raising the competitive-

ness of small businesses, following up migratory processes

and improving access to justice for the most disadvantaged

members of the population.

Finally, one outstanding result with regard to organisational

matters was the creation of the Council of Ibero-American Or-

ganisms, which is to coordinate the work of the different or-

ganisations and permit institutional reinforcement of the Ibero-

American Conference. Also important is the incorporation of

new associate and consultative observers in 2010 along the

lines of participation that were approved two years previously

in the San Salvador Summit. The new countries incorporated

with associate observer status are the Philippines, France Mo-

rocco and The Netherlands, while the new consultative observ-

ers are the Inter-American Development Bank (IDB), the An-

dean Development Corporation (CAF, in its Spanish acronym)

and the World Food Programme (WFP).

THE RIO GROUP

Institutional activity and agenda of regional political coor-dinationFrom its inception, the Rio Group has been a mechanism of

strictly Latin American political coordination, joined by different

countries at different times and now numbering 24 members.

With this dimension, the Rio Group can be said to have be-

come a regional forum and steps have recently been taken

with a view to formalising its status. The two biggest countries

of the region, Mexico and Brazil, have been quite active in

this process since each in its own way is attempting to take

on a leadership role vis-à-vis its neighbours and to create an

influential mechanism that will help to reaffirm its position in

the global context. After a period of a certain degree of stag-

nation, the Rio Group has now recovered its dynamism and

it is also reinforced by the organisation of meetings of heads

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tempt to resolve their differences. Finally, the meeting also ap-

proved a declaration commemorating the fifteenth anniversary

of the Framework Treaty on Democratic Security in Central

America.

As for the extraordinary summits, a meeting was held on

20 July in San Salvador (El Salvador) to relaunch the process

of integration in the region. A declaration of objectives was

adopted at the meeting and a plan of action was approved with

the aim of progressing along five different lines: democratic

security, social integration, climate change, institutional rein-

forcement and economic integration with particular emphasis

on eliminating non-tariff barriers and promoting trade. Fur-

thermore, the meeting approved a special Declaration on Hon-

duras in which its readmission to SICA was agreed upon and

its reincorporation into the Organisation of American States

(OAS) was requested.

Foreign relationsThe Central American countries have a concerted agenda of

activities and foreign relations within the framework of regional

cooperation and integration. In this context, the most signifi-

cant events of 2010 occurred in the regional setting of Mexico

and Colombia and, at the international level, with the European

Union. In addition, the Central American countries held other

meetings through mixed commissions that gave periodical

continuity to their relations with the Republic of Korea.

In the first case, the Twelfth Ordinary Summit of the Tuxtla

Mechanism was held in Cartagena de Indias (Colombia) from

24 to 26 October, this providing a space for dialogue and

consensus which, besides the Central American countries,

included Mexico and Colombia. In the course of the meeting,

the heads of state discussed advances made in the Mesoa-

merican Integration and Development Project, which has been

organised around an economic axis and a human development

axis, and adopted a proposal for establishing a Promotion

and Financing Commission. In the economic area, progress

has been significant with regard to electrical interconnection,

which entails a project for a backbone telecommunications

network and also involves transport infrastructure by means

of the so-called Pacific corridor. In the human development

area advances are centred on public health, prevention of

natural disasters and adaptation to climate change, along with

territorial management and social housing.

With respect to the European Union, after the suspension of

contacts in June 2009 due to the institutional breakdown in

Honduras, negotiations over the agreement on bi-regional as-

sociation were renewed in 2010. With the two meetings held

during the course of the Seventh Negotiating Round in Febru-

ary and March in Brussels progress was made regarding the

three pillars sustaining the project of the agreement. First, is

the political sphere, although some sensitive issues are still

pending, for example migration and the International Criminal

Court. In the area of trade, considerable advances were made

with the rules of origin although there are still differences

over certain regulations and other technical barriers affecting

trade, along with the need for further discussion on intellectual

property. Finally, in the sphere of cooperation it was agreed to

incorporate a developments clause that would make it possible

(SIECA in its Spanish acronym), the total for overall exports in

2010 rose by 11.5%, while the figure for imports was 19%.

Hence, while the balance for services showed a surplus, the

results of the current account balance showed a downturn,

with a deficit of 4.8% with regard to GDP. As for the terms

of exchange, ECLAC analyses suggest that the evolution was

less favourable here since the Central American region is a

net importer of basic products and the value of these prod-

ucts increased. As for performance in overall trade on a

country-by-country basis, the export results, although rela-

tively similar showed some variation, with the exception of

Nicaragua (33%), with the most promising figures, although

it should also be recalled that this country has a lower volume

of sales than its neighbours. In the comparison of imports,

there was less variety in the results with Nicaragua again be-

ing the slight exception (29%).

In terms of intraregional trade, SIECA estimates reveal that

the result for exports among the neighbouring countries in

2010 was similar to that for exports elsewhere in the world.

Accordingly, the percentage of participation in regional trade

at around 27% of total trade (not counting the maquila sector

and free zones) has been maintained. Looking at the evolution

of trade between countries, the sales of Honduras and Nica-

ragua to their neighbours dropped back slightly, while Guate-

mala showed the best performance with an increase of 20%.

In any case, there is continuity in the general trend of trade

flows among the Central American countries, with Guatemala

emerging as the major supplier. Again, both Guatemala and

Costa Rica enjoy a positive balance in exchanges with their

neighbours while Honduras and Nicaragua have deficits.

Institutional activities and relevant items in the agenda for integrationThe heads of state of the member and associate-member

countries of the Central American Integration System (SICA in

its Spanish acronym) attend one or two regular summits every

year in order to follow up the agenda for integration, while ex-

traordinary meetings are also held to discuss specific matters.

In the case of the regular summits, the Thirty-fifth Meeting of

the Heads of State and Government of the SICA countries

was held in Panama on 29 and 30 June. In the declaration

that was adopted and in the plan of action approved by the

heads of state, the need to reconsider the process of regional

integration by means of a new integral, revamped and realistic

strategy was established. Other matters discussed were re-

gional security, climate change, regional migratory policy and

incorporation of the Republic of Panama into the Sub-system

of Central American Economic Integration. Finally, participants

also discussed the situation of Honduras, although they failed

to reach agreement over the country’s readmission to SICA,

thus postponing the matter until a subsequent meeting.

The second summit was held in Belize on 16 December con-

currently with the Thirty-sixth Meeting of the Heads of State

and Government. On the agenda of this meeting were security

issues and regional development with particular reference to

organised crime and eradicating violence. The problems deriv-

ing from the reactivated border crisis between two member

countries was also debated, with a call for dialogue in the at-

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relevant themes discussed, approval was given for the deci-

sion that establishes the basic principles for eliminating the

double levying of the common external tariff and distribution

of customs revenue within the block. Another important item

was the agreement reached on the new regulations for the

MERCOSUR Structural Convergence Fund (FOCEM, in its

Spanish acronym), by means of which new projects were ap-

proved, these involving funding of some 600 million dollars.

The presidents also approved the agreement on the Guaraní

Aquifer which undertakes to conserve and use the transfron-

tier aquifers responsibly so as to ensure sustainability. Finally,

they reaffirmed the commitment to consolidate social policy

as an organising development principle of MERCOSUR. In this

regard, the heads of state took note of the project established

with a view to promoting small enterprises, and also adopted

the commitments undertaken by the ministers for Social Af-

fairs in a meeting they had attended in June in Buenos Aires.

The second presidential encounter occurred during the For-

tieth Meeting of the MERCOSUR Common Market Council

(CMC), which was held in Foz de Iguazú (Brazil) on 16 and

17 December. Several matters on the CMC agenda were dis-

cussed and notable among the main agreements reached is

the Consolidation Programme of the Customs Union, which

will permit greater liberalisation of intraregional trade by elimi-

nating exceptions to the Common External Tariff and special

regimes. In the economic domain, work was done on estab-

lishing the principles for an investment agreement in MERCO-

SUR, while a programme of work was agreed upon with the

aim of liberalising the services trade. In the political and institu-

tional sphere, there was agreement on creating a MERCOSUR

statute of citizenship with the intention of permitting, within

ten years, the free circulation of people and a joint vehicle

number plate system. Also approved was the establishment

of the figure of a High Representative for MERCOSUR Foreign

Relations. Finally, in the social sphere, the Tenth MERCOSUR

Social Summit, which was attended by the heads of state of

the member countries, is noteworthy. This meeting saw the

approval of the Strategic Plan for Social Action, an instrument

designed to further the social dimension of integration.

Foreign relationsBy virtue of the constitutive treaties of MERCOSUR, the mem-

ber countries jointly negotiate some international relations mat-

ters, mainly of a commercial nature, while others are trans-

acted in a concerted fashion. In this context, the MERCOSUR

countries are engaged in a complex process of negotiation

with European Union countries with the aim of fleshing out an

agreement on bi-regional association, which was suspended

in 2004 due to pronounced differences between the two par-

ties. Nevertheless, the desire to move ahead in relations with

Europe endures and, at the beginning of 2010, discussions in

the negotiating process were resumed. Subsequently a sum-

mit was held and attended by the heads of state of the MER-

COSUR countries and the presidents of the EU Council, the EU

Commission and the incumbent of the rotating EU presidency.

This took place in Madrid on 17 May and formal agreement

was reached on reopening negotiations with a new round of

talks that was scheduled in July.

to include themes or areas of cooperation that could be of

interest to the region in some future subsequent to the agree-

ment’s coming into effect. Later, on 19 May, the IV Summit

between the EU and Central American countries was held in

Madrid where the themes on the bi-regional agenda were re-

viewed and the agreement of association was finally signed.

THE COMMON MARKET OF THE SOUTH (MERCOSUR)

Evolution of tradeAs happened in the other Latin American countries, the econ-

omies of the MERCOSUR countries consolidated the trend

of recovery observed at the end of the previous year and,

in 2010, showed a significant upswing in GDP. According to

the preliminary data of ECLAC, growth was very vigorous in

the four countries led by Paraguay (9.7%), after which came

Uruguay (9%), Argentina (8.4%) and finally Brazil (7.7%). In

this context, the preliminary data of LAIA and ECLAC suggest

that the overall trade of the MERCOSUR countries made great

progress, having practically returned to pre-slump levels of

2009. Notwithstanding this, the external imbalances were

once again slightly accentuated with recovery since, in the

case of overall exports the growth was 30% while with im-

ports it was 42%. The results for balance of trade in the block

as a whole show a reduced figure, although it is still positive

and is estimated as being around 25,000 million dollars while

the coverage ratio dropped slightly to 110%. As for the per-

formance by country, the results were quite similar with the

rate of change in both imports and exports, although the dif-

ferences are accentuated with the trade balances. Finally, the

rate of change in the value of exports is explained by a 13%

increase in volume and a 15% rise in prices.

In intraregional trade, exports among the member countries

went up by 35% to a figure of some 44,241 million dollars.

This result indicates that the good results in overall trade have

generated income that has then had its effects on exchanges

within the group. Hence, the quota of intraregional trade grew

slightly with regard to overall trade to a figure of 16% in 2010.

In the comparison of trade between the neighbouring coun-

tries, the percentages of increased sales were quite similar,

except in the case of Argentina, which showed a marginally

inferior growth (25%). In contrast, the results for the trade

balances were more varied, and negative for all countries ex-

cept for Brazil, this confirming a recent trend that reveals an

imbalance in MERCOSUR trade in favour of this country.

Institutional activities and relevant items on the integration agendaNotable among the main institutional activities for 2010 were

the presidential summits held in the course of the regular

meetings of the MERCOSUR Common Market Council (CMC,

in its Spanish acronym), the group’s main decision-making

body, at which the ministers for Economy and Foreign Policy

of the member countries participated. The first presidential

encounter took place during the Thirty-ninth CMC Meeting on

2 and 3 August in San Juan (Argentina). Among the more

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tension and resolving crises so as to further Inter-American

endeavours of integral development.

In his speech, the OAS Secretary-General, José Miguel In-

sulza, took the occasion to express his thanks for the reno-

vation of his mandate for another five years, after which he

described the lines of action that will guide his second term

of office. This was followed by a report on the Inter-American

agenda in which, besides revising the state of affairs of the

central issues of that year’s meeting, he made particular men-

tion of the evolution of the worldwide economic crisis, which

has had serious effects in Latin America with growing poverty

and indigence as well as slowing down the previous trend of

improvement in the struggle against inequality. Another effect

of the crisis indicated by Insulza has been tightened controls

in migratory flows in Europe and the United States. In this re-

gard, he singled out for criticism the EU Return Directive and

Law SB 170 of the State of Arizona (USA).

Insulza also reviewed the situation of Honduras, starting with

its suspension from the OAS, which was unanimously decided

after the coup d’état of 28 June 2009. In the subsequent

period the Secretary-General had participated in a number

of diplomatic endeavours aiming at restoring the democratic

system in Honduras, both through direct missions and as a

back-up mediator in support of the mediation activities of the

President of Costa Rica, Óscar Arias. On the basis of his ac-

cumulated experience and the circumstances surrounding the

Honduras crisis, Insulza used the occasion to reflect critically

on the limits of multilateralism, in particular the difficulties of

reconciling principles such as non-interference with generally

accepted and shared democratic values.

On the other hand, for some time contacts have been made

with a view to favouring trade exchanges between MERCOSUR

with other American countries and with the rest of the world.

In this regard, the landmark achievements for 2010 were the

signing of the Free Trade Agreement with Egypt, besides the

adoption of a framework agreement to move towards the es-

tablishment of free trade with Syria, as well as another frame-

work agreement to facilitate trade and economic cooperation

with Palestine.

ORGANIZATION OF AMERICAN STATES (OAS)

Institutional activityThe Foreign Ministers and Permanent Representatives of the

thirty-four member countries of the OAS attended the Fortieth

Regular Session of the General Assembly from 6 to 8 June

in Lima (Peru) in order to prepare the balance sheet for the

previous period and begin the new annual period of sessions.

The central theme of the meeting was peace, security and

cooperation in the Americas, as is reflected in the Declara-

tion of Lima, which was approved with the consensus of the

participants, affirming that commitment to such mechanisms

is the only way to confront the traditional and new threats af-

fecting the continent. In the debates, agreement was reached

in pointing out the importance of the obligation of the member

countries to avoid the use of violence except in cases of le-

gitimate self-defence, and also stressing the need for continu-

ity in promoting a regional environment that would propitiate

arms control. Also emphasised was overcoming situations of

TABLE IV. GLOBAL FOREIGN TRADE OF MERCOSUR COUNTRIES

(million $)

EXPORTS IMPORTS Balance of trade 2010

Coverage ratio

2010 (%)2010 2009 % 2010-2009 2010 2009 % 2010-2009

Country

Argentina 68,500 55,669 23 56,443 38,781 46 12,057 121

Brazil 201,915 152,995 32 181,649 127,722 42 20,266 111

Paraguay 4,534 3,167 43 9,400 6,497 45 -4,866 48

Uruguay 6,733 5,405 25 8,622 6,907 25 -1,889 78

TOTAL 281,682 217,236 30 256,114 179,907 42 25,568 110

Source: ALADI Produced by: CIDOB

TABLE V. FOREIGN TRADE BETWEEN MERCOSUR COUNTRIES

(million $)

EXPORTS IMPORTS Balance of trade 2010

Coverage ratio

2010 (%)2010 2009 % 2010-2009 2010 2009 % 2010-2009

Country

Argentina 17,295 13,861 25 18,967 13,124 45 -1,672 91

Brazil 22,602 15,829 43 16,611 13,107 27 5,991 136

Paraguay 2,195 1,533 43 3,880 2,632 47 -1,685 57

Uruguay 2,149 1,530 40 3,111 3,129 -1 -962 69

TOTAL MERCOSUR 44,241 32,753 35 42,569 31,992 33 1,672 104

Source: ALADI Produced by: CIDOB

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and resources for reconstructing the country. In this regard,

during 2010, the OAS has actively participated in the prepara-

tion and monitoring of the presidential and legislative elections

while, on 1 December, the Assistant Secretary-General, Albert

R. Ramdin, presented a report detailing complaints of fraud by

some of the candidates. The most dramatic event of the year,

however, was the earthquake in January, which hit the capital

Port-au-Prince and its environs. The OAS as an institution, like

several of its member countries has been working to support

reconstruction in Haiti.

Following the presidential succession after the elections of

November 2010 in Honduras, the OAS continued to insist that

the agreement on Zelaya’s temporary return to the presidency

as a condition for proceeding to an orderly transfer of power

to the president-elect Porfirio Lobo had not been respected.

Subsequently, during the Regular General Assembly of 8 June

2011, it was decided to send a high-level commission to Hon-

duras, this being headed by José Miguel Insulza, who present-

ed his report to the Permanent Council the following month so

that it would call an extraordinary general assembly to decide

upon the eventual reincorporation of Honduras into the OAS.

In response to the internal conflict following an alleged coup

d’état in Ecuador at the end of September the Permanent

Council of the OAS issued Resolution CP/RES. 977 (1772/10)

in which it repudiated the attempt to change the democratic

institutions of Ecuador and decided to send to Quito a com-

mission headed by José Miguel Insulza to demonstrate the

support of the OAS and its member countries for President

Correa.

Finally, at the beginning of November, with a border conflict

between Costa Rica and Nicaragua over the San Juan River,

both countries sought OAS mediation. The mission was head-

ed by José Miguel Insulza who, having met with the leaders

of both countries, presented a report with recommendations

for redressing the situation. This endorsed by the Permanent

Council through Resolution CP/RES. 978 (1777/10).

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

Evolution of tradeThe economies of the three NAFTA member countries and

IMF data show a GDP growth of 2.8% for the United States,

2.9% for Canada and 5.2% for Mexico. A great part of this

improvement is due to the satisfactory performance of for-

eign trade in each case. According to official statistics re-

leased by the United States Census Bureau, total exports

of the United States rose by 21% thus coming close to pre-

crisis sales levels. Similar processes were observed with its

two partners and the official statistics of Canada and Mexico

show significant growth in exports as a whole, of 33% and

27% respectively.

In this context, evolution of trade between the NAFTA part-

ners in 2010 has been positive with exports showing a rise

of 20% within the block. However, the quota of regional trade

among the NAFTA partners showed scant variation, remain-

ing at a figure of 47% because the increase in overall exports

Finally, the Secretary-General gave an account of the OAS

activities in response to the crisis caused by the earthquake

in Haiti, where the organisation has been engaged in those

areas in which it has recognised experience, in particular with

regard to institutional reinforcement.

Electoral observation activities and special missions in crisis situationsThe OAS has been engaged in a wide-ranging set of activi-

ties aimed at favouring the internal stability of the member

states and peace in inter-American relations, while also com-

plying with specific requests made by any countries that are

interested parties. Noteworthy among these are, on the one

hand, the Electoral Observation Missions and, on the other,

the special missions carrying out good offices tasks of accom-

paniment, facilitation and mediation in situations of conflict

between member countries or of domestic crisis within the

states.

In the case of the Electoral Observation Missions, the OAS

presence was requested in 2010 for the general elections

in Saint Kitts and Nevis, which were held on 25 January; the

general elections and the municipal elections of Costa Rica on

7 February and 5 December respectively; the legislative elec-

tions of 14 March and the presidential elections on 30 May in

Colombia; the departmental and municipal elections in Bolivia

on 4 April; the general elections of the Dominican Republic

on 16 May; the general elections of Surinam on 25 May; the

regional and municipal elections in Peru on 3 October; the mu-

nicipal elections in Paraguay on 7 November; the first round

of the general elections in Haiti on 28 November; and, finally,

the general elections in Saint Vincent and the Grenadines on

13 December.

As for the Special Missions mediating in situations of crisis,

in 2010 there was continuity with those already established in

Colombia and Haiti, while three other situations also required

ad hoc missions, two because of internal conflict (Honduras

and Ecuador) and one due to the border conflict between Nica-

ragua and Costa Rica.

The Mission to Support the Peace Process in Colombia

(MAPP/OAS), the mandate for which was established in reso-

lution 859 (1397/04) of the Permanent Council, has been

entrusted with the assignment of verification of the cession

of hostilities, disarmament and reintegration of demobilised

groups along with working with communities affected by vio-

lence. In the reports of this year, along with indicating positive

results in a follow-up assessment of the aforementioned tasks,

the MASP/OAS warns of the dangers of recruitment of demo-

bilised forces and also draws attention to a persisting lack of

trust between institutions and communities.

The OAS has been involved in Haiti for several years and has

been engaged in sustained activity through successive man-

dates in order to attend to a situation of chronic crisis which,

at one point of threatened national collapse, required inter-

national intervention with a United Nations Stabilisation Mis-

sion in Haiti (MINUSTAH). After the presidential and legislative

elections of 2006 and the coming to power of President René

Préval, the assignment of the OAS has been to fortify and con-

solidate institutional structures and to help in seeking projects

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der the auspices of the space for dialogue and consensus

known as the Tuxtla Mechanism. In the twelfth meeting of this

body, which was held on 24 and 26 October in Cartagena

de Indias (Colombia), the heads of state discussed progress

with the Mesoamerican Integration and Development Project,

which is organised around two guiding principles, one econom-

ic and the other human development, and agreed to establish

a Promotion and Financing Commission. In the economic area,

progress has been significant with regard to electrical inter-

connection, which entails a project for a backbone telecommu-

nications network and also involves transport infrastructure by

means of the so-called Pacific corridor. In the human develop-

ment area advances are centred on public health, prevention

of natural disasters and adaptation to climate change, along

with territorial management and social housing.

Mexico has also begun to make some approaches to the

CARICOM countries, with a first meeting that took place on

21 February in Cancun (Mexico) with a view to advancing in

bilateral cooperation and in trade and development. Other

matters discussed were bilateral cooperation in aid for Haiti

and the debate on the Convention on Climate Change. Finally,

outside the continent, the most significant activities concerned

the European Union. On 16 May President Calderón met the

presidents of the EU Commission, the EU Council and the in-

cumbent of the EU rotating Presidency in Comillas (Spain) to

discuss economic association and the agenda for political dia-

logue and cooperation. On the bilateral level, the joint executive

plan of the Strategic Association was approved, while analysis

was made of the progress made in different sectoral discus-

sions and, at the general level, aspects of security, human

rights and climate change were also debated.

UNION OF SOUTH AMERICAN NATIONS (UNASUR)

The backgroundThe process of creating a community that would embrace the

nations of South America has been constructed in different

phases, which have included work on defining objectives, the

main themes on the agenda, the strategy for bringing the

project into being, and the organisational and institutional

architecture of the initiative. Its origins go back to the summit

of political leaders organised by the Brazilian president Fern-

ando Enrique Cardoso, which was held in Brasilia in 2000.

Since then, these presidential meetings have been held al-

most every year until it was decided at the 2004 meeting in

Cuzco, Peru, to institutionalise the gatherings with the initial

denomination of South American Community of Nations. Af-

ter a process of ironing out the details, which lasted another

four years, the presidents of the South American countries

met in Brazil on 23 May 2008 to sign the treaty constituting

UNASUR, whereby the normative framework and institutional

structure of the organism were established and it was stipu-

lated that the group would function with presidential summits

every year, six-monthly ministerial meetings and a permanent

secretariat with its headquarters in Quito. Also envisaged

was the future creation of a South American Parliament, to

was more significant (24%). In terms of performance by coun-

try, the upsurge in sales to partners was considerable in the

United States (23%) and Mexico (29%) and more modest in

the case of Canada (11%).

As for mutual interdependence within NAFTA, trade with

neighbours continues to be the most important for all three

members. In the exports ranking of the United States, the

first client is Canada, followed by Mexico and, considerably

behind, come China, Japan and the United Kingdom. With

US imports, first place is taken by China, followed by Canada

and Mexico and, quite a lot lower down, are Japan and then

Germany.

Nevertheless, there has been almost no change in the imbal-

ances and there are major asymmetries in the exchange be-

tween the United States and its lesser partners. In 2010, one

quarter of US imports came from Canada (14%) and Mexico

(12%), while the United States sold to these two countries

one third of the total of its exports, with a greater proportion

going to Canada (19%) than to Mexico (13%). In contrast, the

concentration of sales to the United States by its neighbours

continues to be very high, representing 80% of the total of

exports from Mexico and 73% of exports from Canada. As for

the concentration of imports, Canada’s levels of dependence

were maintained in 2010 since 63% of its total imports came

from the United States, while the figure for Mexico is a little

less pronounced.

Foreign relationsEach of the three NAFTA member countries develops its own

trade policy independently and basically negotiates free trade

agreements with third countries throughout the Americas, al-

though the United States is the most active of the trio and has

the most extensive agenda, which in 2010 was particularly

manifested in its activities with the CARICOM countries and

also those of the Andean Community. In the former case, the

United States approved in April a ten-year extension to the

Caribbean Basin Trade Partnership Act (CBTPA), an instru-

ment that regulates trade facilities conceded to the Caribbean

countries. In June an informal meeting between the Secretary

of State Hillary Clinton and her counterparts from CARICOM

and the Dominican Republic also took place. This led to a re-

newal of the commitment to cooperation for development and

security in the Caribbean Basin. Meanwhile, relations with the

Andean countries have reached a certain stalemate, the only

significant element being that the US Congress approved a

one-year extension to the Andean Trade Promotion and Drug

Eradication Act (ATPEDEA), which benefits Colombia, Ecuador

and Peru.

Throughout 2010 Canada continued its discussions aimed at

advancing negotiations for a free trade agreement with Costa

Rica, with a view to extending the agreement which has been

in force since 2002 with the inclusion of such new elements

as the service trade, telecommunications, financial services

and investments. Contacts have also been made with Hondu-

ras for discussions on a free trade agreement, while there are

also talks with Peru on cooperation on the labour front.

In Mexico’s case, its privileged relations with its neighbours

of the Central American isthmus continue, these coming un-

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Finally, on 26 November, the South American leaders met

at the Fourth Regular UNASUR Summit in Georgetown (Guy-

ana), where they assessed the organism’s agenda. Other mat-

ters were also discussed at the meeting, including the border

conflict between Nicaragua and Costa Rica and the cholera

epidemic in Haiti. Some agreements were reached, one of the

most relevant among these being the approval of a democratic

protocol that established diplomatic, political and commercial

sanctions in response to any coup attempt in the region. This

set of measures aims to defend democracy and to prevent any

illegitimate attempt to take power. The plan includes a shut-

down of trade, closing land borders, blocking air operations

and cutting off energy supplies.

Homage was also rendered at the Summit to the recently de-

ceased Néstor Kirchner who only some months previously had

been elected secretary-general of the organism, and agree-

ment was reached on a new procedure for election to this

position, with a two-year mandate and no possibility for re-elec-

tion. Venezuela and Colombia proposed a joint candidature for

the new secretary-general, with a Colombian representative

for the first year and one from Venezuela for the second year,

the final appointment pending approval at the next summit.

One of the diplomatic achievements of the meeting was the

complete reestablishment of bilateral relations between Co-

lombia and Ecuador after a two-year rupture. During the meet-

ing the Colombian President, Juan Manuel Santos, announced

that Colombia would send its ambassador to Ecuador before

the end of 2010. Finally, the summit also provided the occa-

sion for the heads of state to farewell Lula, who stepped down

from the presidency of Brazil in January 2010 to make way

for Dilma Rousseff.

Bibliographical and Documentary References

ASOCIACIÓN LATINOAMERICANA DE INTEGRACIÓN (ALADI)

- Latin American Integration Association (LAIA)

- Informe sobre Comercio Exterior Global, enero-diciembre

2010 (Report on Foreign Trade Worldwide: January – Decem-

ber 2010)

http://www.aladi.org/nsfaladi/estudios.nsf/vwestudiosy-

documentosweb/CD1193B4E957BCFD0325785E005C7F6F

Informe preliminar del Secretario General: la evolución del

proceso de integración en el año 2010 ((Preliminary Report

of the Secretary General: Evolution of the Process of Integra-

tion in 2010)

http://www.aladi.org/nsfaladi/estudios.nsf/vwestudios

ydocumentosweb/0932DC31ABD634C4032578320052

807C

BANCO INTERAMERICANO DE DESARROLLO (BID) – Inter-

American Development Bank (IDB), INSTITUTO PARA LA IN-

TEGRACIÓN DE AMÉRICA LATINA Y EL CARIBE (INTAL) – In-

stitute for the Integration of Latin America and the Caribbean

(INTAL)

Carta mensual INTAL (INTAL Monthly Letter), several num-

bers, 2010)

http://www.iadb.org/es/intal/intal,1081.html

be located in Cochabamba, Bolivia, the jurisdiction of which

was to be established in an Additional Protocol that is yet

to be negotiated by a special commission. The agreement

stipulates that the constitutive basis of this body is upheld by

the integration made possible by MERCOSUR and the Andean

Community, along with the participation of Chile, Guyana and

Surinam in such a way that the member countries are con-

fined to the geographic area of South America. However, the

wish of the UNASUR member countries is to advance coop-

erative relationships with all Latin American countries and

hence it is also established that five years after the treaty

comes into force the possibility will remain open for the in-

corporation into the group of other countries of the region

as associate members. Finally, in an extraordinary meeting

held in Brazil on 16 December 2008, the presidents ap-

proved the creation of the South American Defence Council

and the South American Health Council. The former body,

which will be subject to the principles and objectives estab-

lished in the United Nations Charter and the Charter of the

Organization of American States, will constitute an agency

for consultation, cooperation and coordination, the aim of

which is to consolidate the region as a zone of peace and

to serve as a basis for democratic stability and integrated

development of the different countries. The aim of the South

American Health Council is to construct a space of integra-

tion for health matters, incorporating therein the efforts and

achievements of other mechanisms of regional integration

and promoting the common policies and coordinated activi-

ties of the UNASUR countries. Moreover, a working plan was

approved for the South American health agenda, this taking

into consideration, inter alia, an epidemiological shield, the

development of universal systems guaranteeing the right to

health, access to medication, and the development of human

resources in this area.

Institutional activity and the agenda for dialogue and cooperationAn extraordinary meeting of the heads of state and govern-

ment of the UNASUR countries was held on 12 January in

Quito (Ecuador) in order to discuss aid to Haiti after the earth-

quake some days earlier. Subsequently, on 12 May 2010, a

second extraordinary meeting of the UNASUR South Ameri-

can Defence Council was held in Buenos Aires (Argentine) and

the former Argentine president Néstor Kirchner was elected

secretary-general of the organism. Also covered at the meet-

ing were items on the agenda and the plan of action, which

the heads of state ratified with a final declaration. Later, in

response to the alleged coup d’état in Ecuador at the end

of September, the political leaders held another extraordinary

meeting in Buenos Aires. On this occasion they signed a dec-

laration on the situation in Ecuador, reaffirming therein their

“firm commitment to the preservation of democratic institu-

tions, rule of law, constitutional order, social peace and unlim-

ited respect for human rights, these being essential conditions

for the process of regional integration”, and energetically con-

demning the “attempted coup d’état and subsequent kidnap-

ping of President Rafael Correa Delgado in our sister Republic

of Ecuador on 30 September”.

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MERCADO COMÚN DEL SUR (MERCOSUR) – Southern Cone

Common Market

Documentos oficiales, actas, comunicados y declaraciones

(Official documents, records, communiqués and declarations)

http://www.mercosur.int/t_generic.jsp?contentid=1317&

site=1&channel=secretaria&seccion=4

ORGANIZACIÓN DE ESTADOS AMERICANOS (OEA) – Organi-

zation of American States (OAS)

Declaración de Lima y documentos de la XL Asamblea Gen-

eral de la OEA (Declaration of Lima and documents of the

Fortieth OAS General Assembly)

http://www.oas.org/es/40ag/

Comunicados de prensa (Press communiqués)

http://www.oas.org/OASpage/press_releases/home_

spa/press.asp

Discursos (Speeches)

http://www.oas.org/documents/spa/speeches.asp

Informes de las misiones de observación electoral de la OEA

(Reports of OAS electoral missions)

http://www.oas.org/es/sap/deco/moe.asp

Informes de las misiones especiales de la OEA (Reports of

special OAS missions)

http://www.oas.org/es/sap/dsdme/misiones_especial-

es.asp

Misión de Apoyo al Proceso de Paz en Colombia MAPP-OEA

(Mission to Support the Peace Process in Colombia (MAPP/

OAS)

www.mapp-oea.org

ORGANIZACIÓN DE LAS NACIONES UNIDAS (ONU) – United

Nations Organisation (UNO)

World Economic Situation and Prospects 2011

http://www.un.org/en/development/desa/policy/wesp/

wesp_current/2011wesp.pdf

SECRETARÍA DE INTEGRACIÓN ECONÓMICA CENTROAMERI-

CANA (SIECA) – Secretariat for Central American Economic

Integration (SIECA)

Centroamérica: Reporte del desempeño económico 2005-

2010 (Central America: Report on Economic Performance

2005 – 2010)

http://www.sieca.int/site/VisorDocs.aspx?IDDOC=Cache/

17990000003382/17990000003382.swf

Centroamérica: Estadísticas de Comercio (Central American

Trade Statistics)

http://www.sieca.int/site/Enlaces.aspx?ID=007001

SECRETARÍA DE RELACIONES EXTERIORES DE MÉXICO –

Secretariat of Foreign Affairs of Mexico

Proyecto Mesoamérica (Mesoamerican Project)

http://mesoamerica.sre.gob.mx/

Dirección General de Organismos y Mecanismos Regionales

Americanos (Directorate of American Regional Organisms and

Mechanisms)

http://www.sre.gob.mx/index.php/mexico-en-la-organiza-

cion-de-los-estados-americanos-oea-/555

CARIBBEAN COMMUNITY SECRETARIAT

Statements, Communiqués and Press Releases from CARI-

COM Meetings

http://www.caricom.org/jsp/communications/communi-

cations_index.jsp?menu=communications

COMISIÓN ECONÓMICA PARA AMÉRICA LATINA Y EL CAR-

IBE (CEPAL) - Economic Commission for Latin America and the

Caribbean (ECLAC)

- Balance preliminar de las economías de América Latina y el

Caribe 2010. (Preliminary Overview of the Economies of Latin

America and the Caribbean 2010)

- Panorama de la inserción internacional de las economías

de América Latina y el Caribe 2009-2010 (Overview of the

International Insertion of Latin America and the Caribbean

2009-2010)

http://www.cepal.org/publicaciones/

COMUNIDAD ANDINA (CAN) – Andean Community (AC)

Estadísticas de Comercio Exterior (Foreign Trade Statistics)

http://estadisticas.comunidadandina.org/eportal/Tema.

aspx?codtema=142

Boletín Estadístico sobre Comercio Exterior: Exportaciones

Intra y Extracomunitarias, enero-diciembre 2010 (Statistical

Bulletin on Foreign Trade: Intra- and Extra-community Exports,

January – December 2010)

http://estadisticas.comunidadandina.org/eportal/conteni-

dos/1549_8.pdf

EUROPEAN UNION EXTERNAL ACTION

European Union and Latin America

http://eeas.europa.eu/la/index_en.htm

European Union Relations with the Caribbean

http://eeas.europa.eu/caribbean/index_en.htm

FACULTAD LATINOAMERICANA DE CIENCIAS SOCIALES

(FLACSO) – Latin American Faculty of Social Sciences

Observatorio de Integración Regional Latinoamericana (OIR-

LA) – Observatory of Latin American Regional Integration

http://www.flacso.org/programas-y-proyectos/observato-

rio-integracion-regional-latinoamericana-oirla/

FONDO MONETARIO INTERNACIONAL (FMI) – International

Monetary Fund (IMF)

World Economic Outlook Update, January 2011

http://www.imf.org/external/pubs/ft/weo/2011/up-

date/01/pdf/0111.pdf

INSTITUTO NACIONAL DE ESTADÍSTICAS, GEOGRAFÍA E IN-

FORMÁTICA

DE MÉXICO (INEGI) – National Institute of Statistics, Geogra-

phy and Informatics of Mexico

Estadísticas económicas del sector externo (Economic Sta-

tistics of the External Sector)

http://www.inegi.org.mx/Sistemas/temasV2/Default.

aspx?s=est&c=23824

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SECRETARÍA GENERAL IBEROAMERICANA (SEGIB) - Ibero-

American General Secretariat (SEGIB)

Página oficial de la Cumbre de Mar del Plata (Official website

of the Mar de Plata Summit)

http://www.xxcumbreiberoamericana.mrecic.gov.ar/

Balance de la Cumbre de Mar del Plata (Report on the Mar

de Plata Summit)

http://segib.org/news/2010/12/resultados-de-la-cum-

bre-de-mar-del-plata/

Reuniones ministeriales sectoriales (Sectoral ministerial

meetings)

http://segib.org/reuniones/2010/06/29/reuniones-

ministeriales-sectoriales-2010-2/

Calendario de reuniones institucionales en el año 2010 (Cal-

endar of institutional meetings in 2010)

http://www.xxcumbreiberoamericana.mrecic.gov.

ar/?q=es/node/16

SISTEMA DE LA INTEGRACIÓN CENTROAMERICANA (SICA) –

Central American Integration System

Reuniones de presidentes (Presidential summits)

http://www.sica.int/busqueda/busqueda_basica.aspx?IdC

at=9&IdMod=8&IdEnt=1&IdEntStyle=401

Comunicados (Communiqués)

http://www.sica.int/busqueda/busqueda_basica.aspx?idC

at=27&idMod=3&Idm=1&IdmStyle=1

SISTEMA ECONÓMICO LATINOAMERICANO (SELA) – Latin

American Economic System (SELA)

Boletín sobre integración de América Latina y el Caribe (Bul-

letin on Latin American and Caribbean Integration), several

issues from 2010

h t t p : / / w w w . s e l a . o r g / v i e w / i n d e x .

asp?ms=258&pageMs=26362

STATISTICS CANADA

International Trade Statistics

http://www40.statcan.gc.ca/l01/cst01/GBLEC02A-eng.

htm

UNIÓN DE NACIONES SURAMERICANAS (UNASUR) – Union

of South American Nations

Secretaría permanente (Permanent Secretariat)

http://www.pptunasur.com/inicio.php

UNITED STATES CENSUS BUREAU

Foreign Trade Statistics

http://www.census.gov/foreign-trade/statistics/high-

lights/top/index.html