Latin American Integration Association

Latin American Integration Association (LAIA), organization formed in 1980 by Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela, taking over the duties of the Latin American Free Trade Association (LAFTA), which had been created in 1960 to establish a common market for its member nations through progressive tariff reductions until the elimination of tariff barriers by 1973. In 1969 the deadline was extended until 1980, at which time the plan was scrapped and the new organization, LAIA, created by the Treaty of Montevideo. It has the more limited goal of encouraging free trade, with no deadline for the institution of a common market. Economic hardship in Argentina, Brazil, and many other member nations has made LAIA's task difficult. The association's headquarters are in Montevideo, Uruguay.

Latin American Integration Association (LAIA) The successor to the Latin American Free Trade Association (LAFTA), which had been formed in 1960 by the Treaty of Montevideo in an attempt to liberalize and harmonize trade between its eleven member states. As this did not take enough account of the vast differences in economic development between the various members, the LAFTA gave way to the LAIA on 12 August 1980. The LAIA promoted bilateral trade liberalization between individual member states, and established general tariff reductions in different bands, in an attempt to promote the economic development among its poorer members, notably Bolivia, Ecuador, and Paraguay.

Andean Group; OAS; Mercosur

Latin American Integration Association (LAIA; Spanish: Associación Latinoamericana de Integración (ALADI) An economic alliance of 11 Latin American countries. The permanent members of LAIA are Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. The association was formed by the Treaty of Montevideo (1980) to replace the Latin American Free Trade Area (LAFTA); it began operations in 1981. LAFTA had been established in 1960 to increase trade between member countries and to promote their economic and social development. LAFTA, however, had only limited success, being considered overambitious and inflexible. LAIA was created by the members of LAFTA to continue LAFTA's policies, but without fixed timetables for the introduction of such measures as reductions in trade tariffs and with greater allowance for differences between member nations.