Glossary: Andean Pact
DEFINITION:
An economic group, the Andean Common Market, created in 1969 by Bolivia, Colombia, Chile, Ecuador, and Peru as a subregional market to improve its members’ bargaining power within the Latin American Free Trade Association (LAFTA) and to encourage increased trade and more rapid development. LAFTA, which dated from 1960, was replaced in 1980 by the Latin American Integration Association (Asociación Latinoamericana de Integración--ALADI), which advocated a regional tariff preference for goods originating in member states. Chile left the Pact in 1976. The threat that Peru might withdraw from the Pact had receded by August 1992.