South American Community of Nations (CSN/SACN)
In Dec. 2004 representatives of 12 South American countries signed the ‘Cuzco Declaration’ thereby founding a political and economic bloc modelled on the European Union. The aim is to establish a single currency, passport and parliament. The South American Community of Nations (SACN) will be created by the merger of the two existing major South American trade blocs: the Andean Community (Bolivia, Colombia, Ecuador and Peru) and the Southern Common Market or MERCOSUR (Argentina, Brazil, Paraguay, Uruguay and Venezuela), in addition to the market of Chile, and eventually those of Suriname and Guyana. The agreement paves the way for much-needed improvements in transport, energy and other infrastructure, thus facilitating intra-continental trade. The SACN aims to eliminate tariffs on non-sensitive products by 2014 and those on sensitive products by 2019. The bloc will create a single market of 361m. people with a combined GDP of US$973bn. However, insufficiently defined goals and ongoing disputes between members of the already-existing blocs may hamper development, as may future bilateral trade negotiations with the USA.