LAI is the Latin American Integration Association, an economic, trade and industrial union of Latin American countries. The organization itself can also be mentioned in periodicals under the name LAAI, or ALADI, when it comes to English-language foreign sources. Thus, the LAI decryption is exactly the same as the LAAI and ALADI.
Organization History
The LAI itself exists relatively recently - in 2019 it will turn 39 years old, and in a year the organization will celebrate its 40th anniversary. It was created shortly before the end of 1980.
The purpose of its creation is a conceptual review of the provisions on free trade and cooperation to replace the principles of the previous integration group of Latin American countries - the Latin American Free Trade Association, which at that time had existed for more than 20 years since the end of 1960. An agreement on ratification of the organization to create a free market was signed in the capital of Uruguay - Montevideo - by the presidents and heads of government of 11 countries of Latin America.
LAI - what is it in geography? To date, the organization has 13 member countries, is set to expand its sphere of influence. Any country geographically attributed to Latin America can be part of the LAI. Today LAI is one of the key areas of cooperation between the countries of the Latin American region.
The composition and structure of LAI
Since LAI is, above all, a regional ethnic and cultural association, Spanish-speaking countries of Latin America are members of the organization. The largest and most influential members of the organization in terms of economic power are Brazil, Mexico, Colombia, Argentina, Venezuela, Peru, Chile, Ecuador, Cuba, Bolivia, Paraguay, Uruguay and Panama.
Thus, the interpretation of the LAI implies the presence of Latin American countries in this organization. At the same time, 11 countries joined the union in 1980, and 2 much later. We are talking about Cuba (1999 accession), as well as Panama (the youngest member of the LAI since 2011).
All activities of the organization are based on the trade laws of the member countries ratified in 1981. The political foundations of the organization’s activities are provided by the LAI Ministry of Foreign Affairs, the Representative Committee, and the annual Conference, which discusses the successes achieved in previous years on the path to regional integration and the creation of a single political and administrative supranational entity.
The main goals of LAI
Since LAI at this stage of cooperation between countries provides primarily economic preferences, the short-term goal of the organization is to ensure sustainable economic growth of its member countries on the basis of preferential tariff regulation of the international trade process.
Long-term goals include cooperation in the field of environmental protection, tourism, the creation of a single financial market and the abolition of all tariff-duty restrictions, as well as involving more countries in the economic integration process. In the long term, the creation of a supranational united state of Latin American countries is possible. However, LAI is, first of all, a direction of economic integration.