Latin American Free Trade Association
Quick Summary
The Latin American Free Trade Association (LAFTA) was an international economic organization established in 1960 with the goal of creating a common market in Latin America. Its original members included Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay, with other countries joining later. LAFTA aimed to eliminate trade obstacles over a 12-year period, based on reciprocity and most-favoured-nation treatment, and also sought to coordinate industrialization policies.1
However, LAFTA made little progress toward a common market due to the geographic diversity and varying economic development of its member countries. In 1980, it was replaced by the Latin American Integration Association (LAIA), which adopted a more flexible approach, focusing on bilateral preference agreements rather than a strict common market timetable.21
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- Latin American Integration Association
ALADI replaced the Latin American Free Trade Association (LAFTA; Asociación Latinoamericana de Libre Comercio), which had been established in 1960 with the aim of developing a common market in Latin America. The scheme made little progress, and ALADI was created with a more flexible and more limited role…
Read MoreALADI replaced the Latin American Free Trade Association (LAFTA; Asociación Latinoamericana de Libre Comercio), which had been established in 1960 with the aim of developing a common market in Latin America. The scheme made little progress, and ALADI was created with a more flexible and more limited role…
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international tradeThe Latin American Free Trade Association and the Latin American Integration Association…a treaty setting up the Latin American Free Trade Association (LAFTA), predecessor to the Latin American Integration Association. By 1970 the seven signatories had been joined by Ecuador, Colombia, Venezuela, and Bolivia. The treaty provided for a 12-year transition period during which all obstacles to trade were to be eliminated.…
Read More…a treaty setting up the Latin American Free Trade Association (LAFTA), predecessor to the Latin American Integration Association. By 1970 the seven signatories had been joined by Ecuador, Colombia, Venezuela, and Bolivia. The treaty provided for a 12-year transition period during which all obstacles to trade were to be eliminated.…
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