BRASILIA, Brazil - A new South American union and abbreviated as Unasur and Unasul(Portuguese: União de Nações Sul-Americanas, Spanish: Unión de Naciones Suramericanas) was born Friday, May 23 , 2008 as leaders of the region's 12 nations set out to create a continental parliament.
The Unasur/Unasul constitutive treaty was signed on May 23, 2008, at the Third Summit of Heads of State, held in Brasília, Brazil. According to the Constitutive Treaty, the Union's headquarters will be located in Quito, Ecuador. The South American Parliament will be located in Cochabamba, Bolivia, while its bank, the Bank of the South (Portuguese: Banco do Sul, Spanish: Banco del Sur), will be located in Caracas, Venezuela.
Participating nations
Members of the Andean Community (CAN):
Bolivia (started in 2006 the process of joining Mercosur)
Colombia
Ecuador
Peru
Members of Mercosur:
Argentina
Brazil
Paraguay
Uruguay
Venezuela
Other countries:
Guyana
Suriname
Chile
Bolivia (started in 2006 the process of joining Mercosur)
Colombia
Ecuador
Peru
Members of Mercosur:
Argentina
Brazil
Paraguay
Uruguay
Venezuela
Other countries:
Guyana
Suriname
Chile
Current work in progress
Single market
One of the initiatives of Unasur/Unasul is the creation of a single market, beginning with the elimination of tariffs for non-sensitive products by 2014 and sensitive products by 2019.
One of the initiatives of Unasur/Unasul is the creation of a single market, beginning with the elimination of tariffs for non-sensitive products by 2014 and sensitive products by 2019.
Infrastructure cooperation
There is an Initiative for Infrastructure Integration of South America (IIRSA) underway, which has received the support of the Inter-American Development Bank and the Andean Development Corporation.
Unasur/Unasul started plans of integration through infrastructure cooperation with the construction of the Interoceanic Highway, a road that intends to more firmly link the Pacific Coast countries, especially Chile and Peru with Brazil and Argentina by extending highways through the continent, allowing better connections to ports to Bolivia and the inner parts of Argentina, Peru and Brazil. The first corridor, between Peru and Brazil, began construction in September 2005, financed 60% by Brazil and 40% by Peru, is expected to be ready by the end of 2009.
The South American Energy Ring (Zuid-Amerikaanse energie-Ring/Anillo Energético Sudamericano/Anel Energético Sul-Americano) is supposed to interconnect Argentina, Brazil, Chile, Paraguay and Uruguay with natural gas from several sources, such as the Camisea Gas Project in Peru and Tarija Gas Deposits in Bolivia. Though this proposal has been signed and ratified, economic and political difficulties in Argentina and Bolivia have delayed this initiative, and to date, this agreement remains more like a protocol than an actual project, since Chile and Brazil are already building LNG terminals to import gas from overseas suppliers.
There is an Initiative for Infrastructure Integration of South America (IIRSA) underway, which has received the support of the Inter-American Development Bank and the Andean Development Corporation.
Unasur/Unasul started plans of integration through infrastructure cooperation with the construction of the Interoceanic Highway, a road that intends to more firmly link the Pacific Coast countries, especially Chile and Peru with Brazil and Argentina by extending highways through the continent, allowing better connections to ports to Bolivia and the inner parts of Argentina, Peru and Brazil. The first corridor, between Peru and Brazil, began construction in September 2005, financed 60% by Brazil and 40% by Peru, is expected to be ready by the end of 2009.
The South American Energy Ring (Zuid-Amerikaanse energie-Ring/Anillo Energético Sudamericano/Anel Energético Sul-Americano) is supposed to interconnect Argentina, Brazil, Chile, Paraguay and Uruguay with natural gas from several sources, such as the Camisea Gas Project in Peru and Tarija Gas Deposits in Bolivia. Though this proposal has been signed and ratified, economic and political difficulties in Argentina and Bolivia have delayed this initiative, and to date, this agreement remains more like a protocol than an actual project, since Chile and Brazil are already building LNG terminals to import gas from overseas suppliers.
Free movement of people
Visits by South American citizens to any South American country (except French Guiana) of up to 90 days require only the presentation of an identity card issued by the respective authority of the travellers' country of origin. On 24 November 2006, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela waived visa requirements for tourism travel between nationals of said countries.
Visits by South American citizens to any South American country (except French Guiana) of up to 90 days require only the presentation of an identity card issued by the respective authority of the travellers' country of origin. On 24 November 2006, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela waived visa requirements for tourism travel between nationals of said countries.
Monetary policy
Presidents of the 7 founding countries (Argentina, Bolivia, Brazil, Ecuador, Paraguay, Venezuela and Uruguay) officially launched the South American Bank in Buenos Aires in December 2007. The heads of all the founding countries were at the ceremony, with the exception of President Tabaré Vazquez of Uruguay. The capital will be US$ 7 billion, with Venezuela responsible for US$3b and Brazil US$2b. The headquarters will be located in Caracas with offices in Buenos Aires and La Paz.
The Banco do Sul will finance economic development projects to improve local competitiveness and to promote the scientific and technological development of the member countries. Chile and Colombia participated on initial meeting, but they decided not to join the project.
The founding chart affirms that the Bank will promote projects in "stable and equal" manner and priorities will be to reinforce South America integration, to reduce asymmetries, and to promote egalitarian distribution of investments.
The Brazilian Minister Guido Mantega stated that the bank is not similar to the International Monetary Fund; it will be a credit institution similar to the World Bank or the BIRD.
Defense policy
Venezuela and Brazil have put forward a plan for a South American Defense Council which would draft defense policy and serve as a mechanism for regional security. The proposal is currently under discussion by the member states.
Presidents of the 7 founding countries (Argentina, Bolivia, Brazil, Ecuador, Paraguay, Venezuela and Uruguay) officially launched the South American Bank in Buenos Aires in December 2007. The heads of all the founding countries were at the ceremony, with the exception of President Tabaré Vazquez of Uruguay. The capital will be US$ 7 billion, with Venezuela responsible for US$3b and Brazil US$2b. The headquarters will be located in Caracas with offices in Buenos Aires and La Paz.
The Banco do Sul will finance economic development projects to improve local competitiveness and to promote the scientific and technological development of the member countries. Chile and Colombia participated on initial meeting, but they decided not to join the project.
The founding chart affirms that the Bank will promote projects in "stable and equal" manner and priorities will be to reinforce South America integration, to reduce asymmetries, and to promote egalitarian distribution of investments.
The Brazilian Minister Guido Mantega stated that the bank is not similar to the International Monetary Fund; it will be a credit institution similar to the World Bank or the BIRD.
Defense policy
Venezuela and Brazil have put forward a plan for a South American Defense Council which would draft defense policy and serve as a mechanism for regional security. The proposal is currently under discussion by the member states.
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