Cono Sur Agreement

The Cono Sur Agreement: Promoting Trade and Integration in South America

The Cono Sur Agreement, also known as the Southern Cone Common Market, was established in 1980 to promote trade and economic integration among the member countries of South America`s Southern Cone region. The agreement aims to facilitate the free movement of goods, services, capital, and people across the borders of Argentina, Brazil, Paraguay, and Uruguay.

The Cono Sur Agreement is based on the principles of non-discrimination, transparency, and cooperation. Its main objective is to increase the competitiveness of the region`s economies by reducing trade barriers and promoting regional trade. The agreement also seeks to enhance the region`s negotiating power in global trade forums by creating a unified voice among its member countries.

The Cono Sur Agreement has been successful in promoting trade among its member countries. In 2019, the total trade between the member countries reached $24 billion, an increase of 5.6% from the previous year. Argentina and Brazil are the main trading partners, accounting for more than 80% of the region`s trade.

The Cono Sur Agreement has also stimulated foreign investment in the region. The member countries have implemented policies to attract foreign investors, such as tax breaks and streamlined procedures for business registration. As a result, the region has attracted significant foreign investment in sectors such as energy, agriculture, and infrastructure.

In addition to promoting trade and investment, the Cono Sur Agreement has also facilitated the movement of people across the region`s borders. The member countries have implemented measures to streamline immigration and customs procedures, making it easier for people to travel and work across the region.

The Cono Sur Agreement is not without its challenges, however. The member countries face significant economic, social, and political disparities, which can create tensions and hinder the agreement`s implementation. For example, Argentina and Brazil have very different economic structures and levels of development, which can lead to disagreements over trade policies and investment priorities.

Despite these challenges, the Cono Sur Agreement remains an important mechanism for promoting trade and integration in South America`s Southern Cone region. The agreement has helped to create a more competitive, integrated, and prosperous region, and its continued success will be critical for the future development of the region`s economies.