MercoPress. South Atlantic News Agency

LatAm trade could reach US$90 billion

Trade among the twelve member nations of the Latin American Association (ALADI) could reach 90 billion pesos this year, 15.5 percent more than in the previous fiscal year, according to a report published by the association last week in Montevideo.

The report shows that despite the fact that most countries will post decreases in the growth rate of their regional imports, "Brazil is expected to become the main factor of growth in trade and contribute 24 percent of activity. Argentina, Venezuela, and Chile, despite the expected slowdown in their GDP growth compared to 2005, will be dynamic markets for the region."

ALADI, made up of Argentina, Bolivia, Brazil, Cuba, Colombia, Chile, Ecuador, Paraguay, Peru, Mexico, Venezuela and Uruguay, is the legal basis for agreements among countries or groups of countries, such as Mercosur and the Andean Community of Nations (CAN).

Last week, integration specialists from different governments held technical meetings on the ALADI programmes, where they renewed the purpose of the association to expand a Free Trade Area (ELC), a new role assigned by the governments.

The trade forecasts report highlights that "global growth of the ALADI countries is strongly influenced by what happens in the two largest economies in the region (Brazil and Mexico)," and that for 2006, "a relative slowdown in growth is expected for Argentina and Venezuela."