Codification of the Andean Subregional Integration Agreement
(Cartagena Agreement)

Section F. On The Andean Parliament

1. To participate in the promotion and direction of the Andean Subregional integration process, with the aim of consolidating Latin American integration;

2. To study the progress of the Andean subregional integration process and the fulfillment of its objectives, requesting for that purpose, periodic information from the bodies and institutions of the System;

3. To formulate recommendations regarding the annual budget estimates of the bodies and institutions of the System, that are financed through direct contributions of the Member Countries;

4. To suggest to the bodies and institutions of the System actions or decisions, having as a goal or effect, the adoption of modifications, adjustments, or new general guidelines in relation to the programmed objectives and the institutional structure of the System;

5. To participate in the law-making process by suggesting to the bodies of the System draft rules and regulations on subjects of common interest, for incorporation to the Andean Community Law;

6. To promote the harmonization of Member Countries� legislation; and,

7. To promote relationships for cooperation and coordination with the Parliaments of Member Countries, the bodies and institutions of the System, as well as with integration or cooperation parliamentary bodies from third countries.

Article 45. The Andean Development Corporation and the Latin American Reserve Fund are the financial institutions of the System whose purpose is to promote the process of Andean subregional integration.

1. Industrial Development Programs;

2. Agricultural and Agroindustrial Development Programs;

3. Physical Infrastructure Development Programs;

4. The harmonization of foreign exchange, monetary, financial, and fiscal policies, including the treatment of subregional or foreign capital;

5. A common trade policy in relation to third countries; and

6. The harmonization of planning methods and techniques.

1. The expansion, specialization, diversification, and promotion of industrial activity;

2. The development of economies of scale;

3. An optimum utilization of resources available in the area, specially through the industrialization of natural resources;

4. The improvement in productivity;

5. A greater degree of relationship, linkage, and complementarity among the industrial enterprises of the Subregion;

6. An equitable distribution of benefits; and

7. An improved degree of participation of subregional industry in the international context.

1. Industrial Integration Programs;

2. Industrial Complementarity Agreements ; and

3. Industrial Integration Projects.

1. Specific goals;

2. The determination of the products that are the subject matter of the Program;

3. Location of production facilities in the countries of the Subregion whenever required by the characteristics of the sector or sectors subject to the program, in which case, they must include rules regarding the commitment not to encourage production in countries which are not favored by the assignment;

4. A Tariff Reduction Program which may provide different rates of implementation by country and product;

5. A Common External Tariff;

6. Coordination of new investment on a subregional scale and measures to ensure its financing;

7. Harmonization of policies on aspects directly affecting the Program;

8. Complementary measures that may create greater industrial linkages and facilitate the fulfillment of the goals of the Program; and

9. The periods of time during which the rights and obligations arising from the Program shall be maintained, in case the Agreement is denounced.

1. When the products that are the subject matter of these programs belong to the list of reserved products, it may keep them as in a reserved position, with the commitment of improving the Tariff Reduction Program or the Common Minimum External Tariff, as the case may be, within a period which does not exceed that established in the Programs for these purposes; and

2. For the other products, by the general rules of this Agreement.

1. Whenever they belong to the list of reserved products, the participant and nonparticipant countries may maintain them in it; and

2. Regarding the other products, the nonparticipant countries shall apply the general rules of this Agreement.

1. Feasibility and design studies;

2. Supplying equipment, technical assistance, technology, and other goods and services, preferably of subregional origin;

3. Support by the Andean Development Corporation through financing or through equity; and

4. Joint negotiations with international entrepreneurs and government agencies to obtain foreign funds or the transfer of technology.

1. The installed capacity of the existing companies;

2. The financial and technical needs for the installation, expansion, modernization, or conversion of production facilities;

3. The perspectives for establishing joint marketing, technological and research systems, and other forms of cooperation among similar companies; and

4. Employee training requirements.

1. Facilitating the coordination of policies and the joint programming of investments;

2. Channeling an increasing volume of funds to the solution of problems created for Member Countries by the process of industrial integration;

3. Promoting the financing of the investment projects that arise from the execution of the different modes of industrial integration,

4. Expanding, modernizing, or converting industrial plants that may be adversely affected by trade liberalization.