The Latin American Integration Association (ALADI) was formed in 1980 and consists of 11 countries today. Because of the failure of the first attempt at integration
Southern Common Market (MERCOSUR)
The Southern Common Market ((in Spanish El Mercado Comun del Sur, or MERCOSUR) was established in 1988 between Argentina and Brazil, but expanded to include Paraguay and Uruguay in 1991 and Venezuela in 2006. Associate members of MERCOSUR (www.mercosur.int) include Bolivia, Chile, Colombia, Ecuador, and Peru (see Map 8.1). Mexico has been granted observer status in the bloc.
Today, MERCOSUR acts as a customs union and boasts a market of more than 266 million consumers (nearly half of Latin America’s total population) and a GDP of around $2.8 trillion. Its first years of existence were very successful, with trade among members growing nearly fourfold. MERCOSUR is progressing on trade and investment liberalization and is emerging as the most powerful trading bloc in all of Latin America. Latin America’s large consumer base and its potential as a low-cost production platform for worldwide export appeal to both the European Union and the United States.