An in depth comparison and cross analysis between the Andean Community and The Southern Common Market

The Andean Community finds itself neighboring the South American trade bloc Mercosur, or officially known as The Southern Common Market. Comprised of four members: Argentina, Brazil, Uruguay and Paraguay; Mercosur is the worlds fifth largest economy as well as the fourth biggest trading bloc internationally, falling shortly behind the European Union. In stark contrast the annual GDP for the Andean Community falls at just $902.86 billion in comparison to The Southern Common Market’s $2.935 trillion. The total landmass and population show similar trends with Mercosur claiming dominion over 13,771,000 square kilometers housing beyond 260,000,000 citizens, falling at a density of 21 inhabitants per square kilometer; this when compared to the 3,809,000 square kilometers and population of 101,119,000  that form the CAN, begins to pain a clearer picture regarding the modesty of The Andean Community not only economically but also in global presence.

Mercosur simultaneously cater to four distinct currencies and three offical languages, namely Spanish and Portuguese; the CAN on the other hand communicate primarily in Spanish, although over 30 indigenous languages have been officialized. The CAN also trade with various currencies including the Dollar, Peso and Boliviano.

  

  Although not providing its citizens with free movement between membering countries such as is offered by CAN, Mercosur through implementation of free trade zones, intrinsically tailored tarrifs, economic incentives and safeguards have provided an ideal environment to harbor economic growth and prosperity at a much higher level than quantified in the CAN. The financial success of The Southern Common Market is also due in large part to their founding member, Brazil. Brazil is responsible for over 2 trillion dollars of Mercosur’s total GDP, whereas Peru who hold the largest GDP of all CAN members only bring in 210,000M.$ yearly.

Though both institutions have similar exports, specifically raw materials, Mercosur is home to far more natural gas reserves with a much higher access to other exports such as Iron ore, sugar and poultry (the three largest exports in the case of Brazil)

Interestingly, Venezuela prior to their economic collapse, held membership to the CAN before exiting the institution claiming that irreparable damage had been caused by agreements between the United States and the CAN, Venezuela would later join the Southern Common Market in 2012. Shortly after Venezuela were suspended from mercosur over alleged human right violations among other reasons.

the Southern Common Market although still experiencing varied degrees of political turmoil in their respective Nations, namely allegations pertaining to a multitude of corruption scandals, they do not have as serious an issue with legal loopholes and judicial inconsistencies nor contradictions such as in the CAN

Despite the economic modesty of the Andean Community when compared to  Mercosur, the financial superpower; participation is not always directly beneficiary to the joining Mercosur member. In the priorly mentioned instance of Venezuela’s swapping from one institution to another, it if anything had adverse effects than those desired. Since the departure of Venezuela from the CAN, they have experienced rising degrees of economic crisis and collapse, not to mention the food shortages that have ravaged the nation. An event of note was the 2010 vote by the Venezuelan parliament to give former leader Hugo Chavez unprecedented unfettered judiciary powers, such as the ability to sign laws into effect without congressional approval, a decision that later permitted Chavez’ successor, president Maduro, to strip the parliament of all judicial powers in 2017, handing legislative control of the country to a nationalized and personally appointed comity, throwing the country into further authoritarian turmoil. It was for these and a wide smattering of additional factors that lead to the expulsion of Venezuela from the Southern Common Market.

The Andean Community (CAN) is an international organization formed by several institutions that altogether constitute the Andean System of Integration (SAI in Spanish).

On the 26^th of May in 1969, all member states signed the Cartagena Agreement, a constitutive treaty that was aimed to lay down the purposes and goals of the Andean integration, along with defining its institutional system and establishing mechanisms and policies that must be followed by the community authorities.

The CAN was originally a free trade area, and later it became a custom union. Currently it is developing a Common Market, but among the member states there’s already operating a new system of free movement of people, since no visa neither passport are required to travel from one country to another.

But talking about economics and business, the main commercial partners of the Andean Community are the European Union, the United States, Mercosur and China.

The Andean Community pretends to accomplish a set of goals that provide a more balanced situation and a comprehensive self-development through Latin American cooperation.

• ·         Promote the sustainable and also harmonic development of the member states according to equity, integration and economic and social cooperation parameters.
• ·         Rev up the growth and creation of productive employment for the member states.
• ·         Bet on regional integration processes looking to the birth of a common Latin American market.
• ·         Diminish the external vulnerability and improve the international economic position of the member states.
• ·         Strengthen the solidarity among Latin subregions and lessen the current development inequalities among member countries.
• ·         Guarantee an improvement in the quality of life of the inhabitants of the Andean region.