On 26 May 1969 an agreement was signed by Bolivia, Chile, Colombia, Ecuador and Peru establishing the Cartagena Agreement (also referred to as the Andean Pact or the Andean Group). Chile withdrew from the Group in 1976. Venezuela, which was actively involved, did not sign the agreement until 1973. In 1997 Peru announced its withdrawal for five years. In 2006 Venezuela left as a result of Colombia and Peru signing bilateral trade agreements with the USA.
The Andean Free Trade Area came into effect on 1 Feb. 1993 as the first step towards the creation of a common market. Bolivia, Colombia, Ecuador and Peru have fully liberalized their trade. A Common External Tariff for imports from third countries has been in effect since 1 Feb. 1995.
In March 1996 at the Group’s 8th summit in Trujillo in Peru, the then member countries (Bolivia, Colombia, Ecuador, Peru, Venezuela) set up the Andean Community, to promote greater economic, commercial and political integration between member countries...