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Andean Community ANDEAN COMMUNITY The regional integration in the Andean countries began with the signature of the Cartagena Agreement in 1969 which led to the formation of the Andean Group with the objective of creating a customs union and a common market. In 1996, the Protocol of Trujillo enabled institutional reform led to the creation of the Andean Community. This created the Andean Council of Presidents and the Advisory Council of Foreign Ministers, together with the conversion of the Board of the Cartagena Agreement into a General Secretariat based in Lima, Per. In 2001 the Andean Passport was created, enabling citizens of member states to travel between the countries without request for visa. In 2005 the integration of Latin American and Caribbean regions gained priority in the agenda of Andean Community. The Andean Community is a trade block of four countries, Bolivia, Colombia, Ecuador and Peru. Chile, Argentina, Brazil, Paraguay and Uruguay are associated while Panama and Mexico are Observers. The Headquarters of CAN located in Lima, Peru. Andean community deals with the following issues: Trade in Goods ; Trade in Services ; Customs Union ; movement of people ; Common Market ; Common Foreign Policy ; Border Development ; Social Agenda ; Sustainable Development ; and Economic Policies. Important Institutional bodies within the Andean community: Besides the Andean Council of Presidents and the Council of Foreign Ministers consisting of the Presidents and Foreign Ministers of the Member Countries respectively, the CAN has the following institutions: (i) Andean Secretariat - This is the executive body, with a full time Secretary General whose Secretariat is in Lima, Peru. Adalid Contreras Baspineiro of Bolivia is the present Secretary General. (ii) Andean Development Corporation (CAF) -CAF is the leading source of external financing for the Andean Community members, which is situated in at Caracas, Venezuela. The annual total credit given by CAF is over US$ 2 billion. The credit is given to regional projects. CAF has established its reputation as a successful regional fund with strong fundamentals and good credit rating. CAF is situated. (iii) Andean Court of Justice - This body in Quito, Ecuador and resolves disputes among member countries. (iv) Andean Parliament - is the policy advisory body and is situated in Bogota , Colombia. Andean Presidential Council (v) Andean Congress (Bogotá, Colombia) Market: The Andean Community has a total population of 98 million with a combined 1 GDP of US$ 902 billion (PPP). CAN became operational in the nineties with the establishment of a Free Trade Area in 1993 and the Customs Union in February 1995. Internal problems in these countries in the last few years have slowed down the integration process. Today 100% of the goods of Andean origin circulate duty-free within the CAN. Intra-community trade has been growing significantly as well as CAN’s trade with rest of the world. CAN intra bloc trade increased 17.6 % to US$ 9.187 billion in 2011. Similarly, exports from CAN to rest of the world has increased 34.3% and imports 29.6% as compared to 2010. In 2011, CAN exports were valued at US$ 131 billion and imports at US$ 126 billion. The Main trade partner (in 2011) were USA (22%), EU (12%), china (15%), Mercosur (11%) and CAN (8%) Free flow of people: Since January 1, 2005, the citizens of the member countries can enter the other Andean Community member states without the requirement of visa. The passengers should present the authorities only their national ID cards. The Andean passport was created in June 2001. Passports are issued based on a standard model which contains harmonised features of nomenclature and security. The passport is effective in Ecuador, Peru and Venezuela and Bolivia. India and the Andean community In June 2003, India and the Andean Community established a Political Dialogue and Cooperation Mechanism for the purpose of strengthening and deepening their friendship, understanding and cooperation and developing mutually beneficial trade and investment relations and promoting cultural and scientific exchanges. During former MOS Shri Shashi Tharoor’s visit to Lima in January 2012 he met with the Andean Community Secretary General Mr. Freddy Ehlers, the then Chair Pro Tempore (Peru) of the CAN and other representatives of the CAN countries. Secretary General expressed interest to cooperate with India environment, energy and food security, rural development and science and technology. He also visited India in 2010. March 2012 2.
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