Latin American Free Trade Association financial definition of Latin American Free Trade Association
Latin American Free Trade Association
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Latin American Free Trade Association (LAFTA) the former ‘free trade area established in 1960 comprising ten members: Argentina, Brazil, Paraguay, Mexico, Venezuela, Chile, Colombia, Ecuador, Peru and Bolivia. In 1995, a new trade bloc, MERCOSUR, was established, creating a customs union between Brazil, Uruguay, Argentina and Paraguay Mexico is now a member of the NORTH AMERICAN FREE TRADE AGREEMENT. See TRADE INTEGRATION.
Latin American Free Trade Association (LAFTA) a regional alliance formed in 1960 with the general objective of establishing a FREE TRADE AREA. There were seven original member countries of LAFTA: Argentina, Brazil, Peru, Chile, Mexico, Paraguay and Uruguay, with three other countries joining shortly afterwards: Colombia, Ecuador and Venezuela. Economic and political instability, however, led to its gradual disintegration, with some countries (Peru, Chile, Colombia and Ecuador) establishing the ANDEAN PACT in 1969. Mexico joined the NORTH AMERICAN FREE TRADE AGREEMENT in 1993 and the remaining members of LAFTA (with the exception of Venezuela) established MERCOSUR in 1995.