Introduction
The South Common Market is an intergovernmental treaty that was signed by the leaders of five nations, Venezuela, Colombia, Ecuador, Peru, and Bolivia, on December 8, 2018. The treaty is based on the principles of sovereignty, diversity, openness and inclusivity, that is to be shared among the five nations and ideally will contribute to the promotion and strengthening of cooperation and solidarity among them, as well as to their integration into the global economy.
The main objective of the South Common Market is to promote the adoption of policies, regulations and standards that ensure the full realization of the Political, Social and Economic Sustainable Development of the territories of the signatory countries. The South Common Market also seeks to benefit from the complementarities of the products and services of the five countries, while creating social and economic opportunities.
Historical Context
The South Common Market was created to improve trade and economic opportunities between the five Latin American nations. It concerns the issues of economic integration, infrastructure investment, and cultural exchanges and is designed to reduce economic and political dependence on traditional foreign powers, such as the United States and Europe.
The South Common Market is a response to the failure of the Caricom (Caribbean Common Market), which was signed in 1989 but has not achieved the desired results due to the lack of real commitment among the member countries. The South Common Market seeks to establish a different model of regional integration.
Recently, South American leaders held a summit in Quito, Ecuador to discuss the implementation of the South Common Market, particularly the implementation of a common currency, the ‘Surtio’, for the five nations.
Principles of South Common Market
The South Common Market is founded on 5 main principles of:
1. Mutual respect and recognition of the sovereignty of the participating countries;
2. Equality and mutual benefit of all the signatories;
3. Promotion of economic and social development objectives shared by the participating countries;
4. Ensuring full respect for cultural diversity of the member states; and
5. Respect for international law and the fundamental principles of democracy.
Goals
The South Common Market aims to strengthen economic and political ties between the countries of the region, as well as promote their development. The major goal of the treaty is to establish a stable framework for regional integration that would benefit the entire region.
The objectives of the South Common Market are divided into three main pillars:
1. Economic integration: Create an international framework that allows for the free movement of goods, services and capital.
2. Infrastructure development: Increase public and private investment in the region’s infrastructure, including natural gas, communications, railways and highways, telecommunications, ports and air transportation, among others.
3. Cultural exchanges: Stimulate cultural exchanges among the countries of the region and promote the appreciation of the place that each national culture occupies in the totality of the Latin American culture.
Conclusion
The South Common Market is an ambitious project that seeks to create more economic opportunity, investment and cultural exchange between Latin American countries. The success of the South Common Market will be dependent on all the signatories’ commitment to implementing the principles of the treaty and meeting the objectives it sets for regional integration. If the South Common Market is successful, it could be a model for regional integration in Latin America and around the world.
