Latin American Integration Association (LAIA)

Latin American Integration Association (LAIA), organization aimed at promoting harmonious and balanced economic development in Latin America with the goal of establishing a common market. The organization is officially known in Spanish as Asociación Latinoamericana de Integración (ALADI).

LAIA was founded in 1980, replacing the Latin American Free Trade Association (LAFTA), founded 20 years earlier. The 12 members are Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. There are also 16 observer countries: China, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Italy, Japan, Nicaragua, Panama, Portugal, Russia, Romania, South Korea, Spain, and Switzerland. To help poorer members, the LAIA introduced a scheme of regional tariff preference based on the level of economic development of the individual countries. In this way it hopes to encourage reciprocal trade and market expansion, and to promote solidarity and friendship.

The Committee of Representatives is the permanent political body of LAIA. Its role is to ensure that policy and regulations are correctly implemented. The Council of Foreign Affairs Ministers develops LAIA policy, and the Evaluation and Convergence Conference encourages negotiations between members and assesses progress. These committees meet irregularly, when convened by the committee of representatives. The General Secretariat is the technical body, responsible for making proposals, conducting research, and evaluating activities. The LAIA is headquartered in Montevideo, Uruguay.