Common Market for Latin America

October 20, 1965

Report Outline
New Drive for Economic Integration
Steps Toward Latin Economic Community
Difficulties in Path of Common Market

New Drive for Economic Integration

Anew effort to attain one of the major goals of the Alliance for Progress—economic integration of Latin America—is getting under way. The concept of a vast common market embracing all of the countries to the south, where more than 200 million people now live, is not itself new. The United Nations Economic Commission for Latin America has been studying proposals of the sort for a decade and a half. And two limited trading groups—the five-member Central American Common Market and the nine-nation Latin American Free Trade Association—have been established.

There is nevertheless still a long way to go to carry out the pledge made at the meeting in Punta del Este, Uruguay, where the Charter of the Alliance for Progress was signed in August 1961. Nineteen Latin American countries and the United States there resolved “to strengthen existing agreements on economic integration, with a view to the ultimate fulfillment of aspirations for a Latin American common market that will expand and diversify trade among the Latin American countries and thus contribute to the economic growth of the region.”

Some progress toward breaking down trade barriers has been made, particularly in Central America, and in the past two years the region as a whole has achieved the target of a 2½ per cent per capita increase in gross national product. But the pace of industrialization has not satisfied Latin economists. The economies of the 19 countries remain based for the most part on one or two export crops, whose prices on world markets are subject to wide fluctuations. The economies of many neighboring countries are similar rather than complementary—a circumstance that limits natural trading opportunities and forces competitive selling in the markets of industrialized nations. Tariff protection to hold off competition with domestic infant industries has proved difficult to modify or eliminate.

ISSUE TRACKER for Related Reports
Latin America
Sep. 14, 2018  Turmoil in Central America
Jun. 05, 2012  China in Latin America
Mar. 2008  The New Latin America
Jul. 21, 2006  Change in Latin America
Mar. 14, 2003  Trouble in South America
Nov. 09, 2001  U.S.- Mexico Relations
Sep. 19, 1997  Mexico's Future
Jul. 19, 1991  Mexico's Emergence
May 05, 1989  New Approach to Central America
Mar. 06, 1987  Soviets' Latin Influence
Dec. 26, 1986  Pinochet's Chile
Nov. 08, 1985  Troubled Mexico
Apr. 10, 1981  Latin American Challenges
May 05, 1978  Central America and the U.S.A.
Sep. 23, 1977  Mexican-U.S. Relations
Jun. 04, 1976  Relations with Latin America
Oct. 21, 1970  Chile's Embattled Democracy
Jun. 24, 1970  Mexico's Election and the Continuing Revolution
Apr. 02, 1969  Economic Nationalism in Latin America
Jul. 19, 1967  Guerrilla Movements in Latin America
Dec. 28, 1966  Militarism in Latin America
Oct. 20, 1965  Common Market for Latin America
Aug. 04, 1965  Smoldering Colombia
Jun. 23, 1965  Inter-American Peacekeeping
Dec. 11, 1963  Progress of the Alianza
Oct. 05, 1962  Arms Aid to Latin America
Dec. 13, 1961  Land and Tax Reform in Latin America
Jul. 26, 1961  Commodity Agreements for Latin America
Jan. 11, 1961  Revolution in the Western Hemisphere
Feb. 10, 1960  Inter-American System
Feb. 10, 1960  Inter-American System
Jan. 13, 1960  Expropriation in Latin America
Jul. 02, 1958  Economic Relations with Latin America
Mar. 02, 1954  Communism in Latin America
Jun. 20, 1952  Political Unrest in Latin America
Sep. 18, 1950  War Aid from Latin America
Oct. 31, 1947  Arming the Americas
Jul. 24, 1946  Inter-American Security
Jan. 02, 1942  Latin America and the War
Jul. 10, 1941  Export Surpluses and Import Needs of South America
Jun. 04, 1941  Economic Defense of Latin America
Jun. 25, 1940  Politics in Mexico
Nov. 01, 1939  Pan American Political Relations
Oct. 10, 1939  United States Trade with Latin America
Apr. 07, 1938  Protection of American Interests in Mexico
Mar. 04, 1936  Peace Machinery in the Americas
Sep. 27, 1933  Trade Relations with Latin America
Oct. 16, 1928  Pan American Arbitration Conference
Jan. 12, 1928  The Sixth Pan American Conference
Jan. 10, 1927  American Policy in Nicaragua
Dec. 27, 1926  Relations Between Mexico and the United States
International Finance
Regional Political Affairs: Latin America and the Caribbean