The Latin American Integration Association / AsociaciĆ³n Latinoamericana de IntegraciĆ³n / AssociaĆ§Ć£o Latino-Americana de IntegraĆ§Ć£o (LAIA / ALADI) is an international and regional scope organization. It was created on 12 August 1980 by the 1980 Montevideo Treaty, replacing the Latin American Free Trade Association (LAFTA/ALALC). Currently, it has 13 member countries, and any of the Latin American States may apply for accession.
The Southern Common Market (commonly known by abbreviation Mercosur in Spanish and Mercosul in Portuguese) is a South American trade bloc established by the Treaty of AsunciĆ³n in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Bolivia, Brazil, Paraguay, and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Chile, Colombia, Ecuador, Guyana, Panama, Peru, and Suriname are associate countries.
Mercosur's origins are linked to the discussions for the constitution of a regional economic market for Latin America, which go back to the treaty that established the Latin American Free Trade Association in 1960, which was succeeded by the Latin American Integration Association in the 1980s. At the time, Argentina and Brazil made progress in the matter, signing the IguaƧu Declaration (1985), which established a bilateral commission, which was followed by a series of trade agreements the following year. The Integration, Cooperation and Development Treaty, signed between both countries in 1988, set the goal of establishing a common market, which other Latin American countries could join. Paraguay and Uruguay joined the process and the four countries became signatories to the Treaty of AsunciĆ³n (1991), which established the Southern Common Market, a trade alliance aimed at boosting the regional economy, moving goods, people among themselves, workforce and capital. Initially a free trade zone was established, in which the signatory countries would not tax or restrict each other's imports. As of 1 January 1995, this area became a customs union, in which all signatories could charge the same quotas on imports from other countries (common external tariff). The following year, Bolivia and Chile acquired membership status. Other Latin American nations have expressed interest in joining the group.
The Latin American Free Trade Association (LAFTA, later transformed into the Latin American Integration Association, Spanish: AsociaciĆ³n Latinoamericana de IntegraciĆ³n, Portuguese: AssociaĆ§Ć£o Latino-Americana de IntegraĆ§Ć£o) was created in the 1960 Treaty of Montevideo by Argentina, Brazil, Chile, Mexico, Paraguay, Peru, and Uruguay. The signatories hoped to create a common market in Latin America and offered tariff rebates among member nations. In 1980, LAFTA reorganized into the Latin American Integration Association (ALADI) which now has 13 members: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay, and Venezuela.
Paraguayan foreign policy has concentrated on maintaining good relations with its neighbors, and it has been an active proponent of regional co-operation. It is a member of the United Nations and has served one term in the UN Security Council in 1967ā1969. It maintains membership in several international financial institutions, including the World Bank, the Inter-American Development Bank, and the International Monetary Fund. It also belongs to the Organization of American States, the Latin American Integration Association (ALADI), the Rio Group, INTERPOL, MERCOSUR (the Southern Cone Common Market) and UNASUR.
At the political level, diplomatic affairs and international relations of Paraguay are officially handled by the Ministry of Foreign Relations, which answers to the executive branch of the government. Minister of Foreign Relations 2018 -2019 was Luis Alberto Castiglioni.