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Andean Community of Nations 5(*,21$/675$7(*<$1'($1&20081,7<2)1$7,216 1 $FURQ\PV1 ACT Amazonian Cooperation Treaty AEC Project for the establishment of an common external tariff for the Andean States AIS Andean Integration System (comprises all the Andean regional institutions) ALADI Latin American Integration Association (Member States of Mercosur, the Andean Pact and Mexico, Chile and Cuba) ALALC Latin American Free Trade Association, replaced by ALADI in 1980 ALA Reg. Council Regulation (EEC) No 443/92 of 25 February 1992 on technical and financial and economic cooperation with the countries of Asia and Latin America ALFA Latin American Academic Training Programme ALINVEST Latin American investment programme for the promotion of relations between SMEs @LIS Latin American Information Society Programme APEC Asia-Pacific Economic Cooperation (21 members)2 APIR Project for the acceleration of the regional integration process ARIP Andean Regional Indicative Programme ATPA Andean Trade Preference Act CACM Central American Common Market: Costa Rica, El Salvador, Guatemala, Nicaragua and Honduras CAF Andean Development Corporation CALIDAD Andean regional project on quality standards CAN Andean Community of Nations: Bolivia, Colombia, Ecuador, Peru, Venezuela + AIS CAPI Andean regional project for the production of agricultural and industrial studies CARICOM3 Caribbean Community DAC Development Assistance Committee of the OECD DC Developing country DFI Direct foreign investment DG Directorate-General DIPECHO ECHO Disaster Preparedness Programme EC European Community ECHO European Community Humanitarian Office ECLA Economic Commission for Latin America EC OJ Official Journal of the European Communities EIB European Investment Bank ELN National Liberation Army, Colombia ¼[ m [ million euros EU European Union FARC Revolutionary Armed Forces of Colombia FATF Financial Action Task Force on Money Laundering FMs Foreign Ministers/Foreign Ministries FTAA4 Free Trade Association of the Americas G3 Group of Three: Colombia, Mexico and Venezuela GAFISUR Financial Action Task Force for South America (emanated from FATF) GRANADUA Andean Regional Customs Cooperation Project GSP Generalised system of tariff preferences HDI UNDP human-development index HIPC WB debt initiative for the heavily indebted poor countries IADB Interamerican Development Bank IMF International Monetary Fund LAC Latin America and the Caribbean Mercosur Southern Cone Common Market: Argentina, Brazil, Paraguay and Uruguay MoU Memorandum of Understanding NAFTA North American Free Trade Agreement: Canada, Mexico and the United States NGO Non-governmental organisation NT Northern Triangle: Honduras, Guatemala and El Salvador OAS Organization of American States OECD Organization for Economic Cooperation and Development OLADE Latin American Energy Organization OPEC Organization of the Petroleum-Exporting Countries PDA Public development aid PIERANDINO Andean regional energy-distribution project S&T Science and technology SGCAN Secretariat-General of the Andean Community of Nations 2 SPS Sanitary and phytosanitary TBT Technical barriers to trade UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme URBAL Latin American Urban Programme (for the establishment of networks of local authorities in various areas of activity) VECEP Andean Fisheries Project (terminated) WB World Bank WTO World Trade Organization 3 7$%/(2)&217(176 6800$5< 352),/(2)7+(68%5(*,21 ½ *(2*5$3+<$1'3(23/( ½ 7+($1'($1&20081,7<2)1$7,216 &$1 $1'7+($1'($1 ,17(*5$7,216<67(0 $,6 ½ 7+((&2120,&)5$0(:25. $LPVDQGLQVWUXPHQWVRI(8(&FRRSHUDWLRQZLWKWKH$QGHDQVXEUHJLRQ *HQHUDODLPV 8 $LPVUHODWLQJWR/DWLQ$PHULFD 9 7KHLQVWUXPHQWVRI(8(&FRRSHUDWLRQZLWKWKH$QGHDQVXEUHJLRQ 9 7KH$QGHDQVXEUHJLRQDODJHQGD 7KHSROLWLFDODJHQGD 10 7KHHFRQRPLFDQGFRPPHUFLDODJHQGD 10 7KHVRFLDODJHQGDDQGSK\VLFDOLQWHJUDWLRQ 11 $QDO\VLVRIWKH$QGHDQVXEUHJLRQ 7KH$QGHDQ&RPPXQLW\¶VVWUHQJWKVDQGFHQWULIXJDOIRUFHV 12 6XVWDLQDELOLW\RIWKH$QGHDQLQWHJUDWLRQSURFHVV 14 0HGLXPWHUPVXEUHJLRQDOFKDOOHQJHVIRUWKH$QGHDQ&RPPXQLW\ 15 6XPPDU\RISDVWDQGSUHVHQW(&IXQGHGFRRSHUDWLRQLQWKH$QGHDQVXEUHJLRQ (&IXQGHGUHJLRQDOFRRSHUDWLRQ 16 9LUWXDODEVHQFHRIRWKHUGRQRUVIURPWKHGRPDLQRIVXEUHJLRQDOFRRSHUDWLRQ 17 &RPPXQLW\UHVSRQVHVWUDWHJ\ 3ULQFLSOHVDQGDLPVRIFRRSHUDWLRQ 18 3ULRULWLHVDQGVSHFLILFDLPV 18 5.2.1. Supporting Andean integration 18 5.2.2. Support for the aim of an Andean peace zone 19 &RQVLVWHQF\ZLWKRWKHU&RPPXQLW\SROLFLHV 20 &RPSOHPHQWLQJWKHFRQWULEXWLRQVRIRWKHUGRQRUVDQGRWKHU(&SURMHFWVLQ$QGHDQFRXQWULHVDQGLQ /DWLQ$PHULFD 21 5.4.1. Complementing the contributions of other donors 21 5.4.2. Complementing other EC projects in Andean countries and in Latin America 22 $QGHDQ5HJLRQDO,QGLFDWLYH3URJUDPPH $5,3 3URSRVHGPHDVXUHV 23 &URVVFXWWLQJLVVXHV 29 $QQH[HV 1. Map of the Andean region 2. Main regional integration and development indicators in CAN 3. Main national indicators of the Andean countries 4. Trade 5. Direct foreign investments 6. Public development aid to the Andean countries 7. Community allocations to the region by budget line, 1992-2000 8. Current Andean regional projects, all donors 4 6800$5< This regional strategy of the European Community focuses on the Andean Community of Nations (CAN), comprising the five countries of the Andean region (Bolivia, Colombia, Ecuador, Peru and Venezuela) and the Andean Integration System (AIS). The original aim of the Cartagena Agreement, when it was concluded in 1969, was to promote subregional integration that would develop more rapidly than the integration process for the South American subcontinent as a whole. CAN covers a territory which is one and a half times as large as that of the EU and which accounts for 40% of the total area of Latin America. Its population is one third as large as that of the EU and constitutes a quarter of the entire population of Latin America. Its single common language is Spanish. The average SHUFDSLWD GDP ranges from $1 000 in Bolivia to $3 500 in Venezuela, which illustrates one of the disparities that exist between its member countries. Trade between the EU and CAN is worth ¼EQWKH(8DFFRXQWVIRU 15% of CAN’s total trade volume, while the CAN share of total EU trade is 0.7%. At an average of $2 500 per head of population over the last five years, the EU is the main source of DFI in the Andean subregion. There is a crowded subregional agenda, with common positions on major issues, a common foreign policy, a subregional anti-drug plan, an ‘Andean Peace zone’, greater involvement of grass-roots organisations (‘civil society’) in the Andean integration process, the completion of a common market by 2005, trade talks between CAN and Mercosur, which are due to culminate in an agreement in 2002, and FTAA negotiations, as well as the implementation of a Social Agenda and of a sustainable-development policy. Nevertheless, the development of Andean integration is being retarded by centrifugal forces, such as the divergent priorities of the member governments and their reluctance to give up certain national powers. The challenges facing this subregion are therefore twofold. Firstly, there is the need to strengthen Andean integration by ensuring that all players in society are involved in the process, by adopting a common external tariff, by constructing a common market and by developing the ability of CAN to project itself on the international stage as a cohesive bloc. Secondly, there is the need to tackle the causes of actual or potential conflicts with a view to creating a zone of peace and cooperation. There is undoubtedly much to be gained by taking concerted action to address numerous overarching, cross-border and CAN-wide issues, (illegal drugs, natural disasters, refugees, etc.). Numerous achievements in the course of its thirty-odd-year history testify to the sustainability of the integration process. Nevertheless, this development will stand or fall by the ability of CAN to implement the agenda set for the subregion by the Presidential Council. Since the 1970s, when CAN was in its infancy, it has been supported by development cooperation with the European Community. The amount assigned to this cooperation varies between ¼ m and ¼ m per annum, which is equivalent to 6% of all Community aid allocated to the subregion and its individual nations and less than 2% of the total allocation to Latin America. Comprising numerous initiatives in various areas of activity (fishing and agriculture, for example), EC cooperation with the Andean subregion has focused on economic initiatives relating to the construction of the common market (customs, standards and specifications, competition rules, etc.), on the promotion of human rights and on humanitarian assistance and the fight against drugs. The EC is the main source of funding for Andean subregional projects, the other sponsors having tended to opt for a national approach. 5 The Community response strategy will focus on two priorities. The first is to support the Andean integration process through the various direct participants in that process, helping CAN to develop a single market and to project itself as a player on the international stage. The second is to support the creation of an Andean peace zone by concentrating on various potential sources of conflict, such as the fight against drugs and the management of natural resources. With an indicative amount of ¼ m having been allocated for the period 2000-2006 and some commitments having already been made from this allocation, the regional indicative programme for the period from 2002 to 2006 proposes three initiatives
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