At two years from the Cuzco Declaration in which we decided to establish the South American Community of Nations, and one year since the approval of the priority agenda in Brasilia, and after a very constructive process of strategic reflction, today, in Cochabamba, the Presidents of the South American Nations facing our peoples, agree to place the cornerstone of this process of South American Integration.

1) A new Integration Model for the XXI Century

The end of the bipolar system constructed after the Second World War put an end to the “Cold War”, and brought with it a weakening of multilateralalism and a deepening of the asymmetries among countries and even continents.

The globalization process has deeply influenced our economies and societies. Recently it has been possible to start constructing alternatives that point towards resuming growth, preservation of macroeconomic balances, emphasis on income distribution as an instrument to eliminate social exclusion and reduce poverty, as well as reduction of external vulnerability.

In this context, regional integration is an alternative to avoid globalization from deepening asymmetries, contributing to economic, social and political and marginalization, and to take advantage of development opportunities.

The construction of the South American Community of Nations seeks development of an integrated space in politics, society, culture, the economy, finance, the environment and infrastructure. This South American integration is required not only to solve the great calamities affecting the region, such as persistent poverty, social exclusion and inequality – which in the last few years have become a central concern of every national government – but also a decisive step to develop a multipolar, balanced, fair multilateral world based on a culture of peace.

We propose a new model of integration with its own identity, pluralist, among diversity and differences, recognizing diverse political and ideological concepts, which correspond with the democratic plurality of our countries.

This new integration model comprises the commercial area and a broader economic and productive articulation, as well as new forms of political, social and cultural cooperation, both public and private, as well as other forms of organization of civil society. This is an innovative integration that includes all the accomplishments and advances of MERCOSUR and CAN processes, as well as the experiences of Chile, Guyana and Surinam, going beyond convergence between them. The ultimate goal of this integrating process is and should be to favor a more equitable, harmonic and integrated development in South America.

In a period when our States assume new responsibilities, regional integration arises as an indispensable element for carrying out our national development projects, facilitating South American cooperation at every level.

The South American Community of Nations, composed of democratic and sovereign States, is sustained by a concurrence of goals, principles and values that recognize the multiethnic, multicultural and multilingual character of our peoples. This community is sustained by its historic bases, and recognizes the role that indigenous peoples, afro-descendants and indentured labor, and social struggles in the region. We are convinced that South American unity will contribute to strengthening the unity of all of Latin America and the Caribbean.

2) Principles of South American Integration

Retrieving the principles of Cuzco, Ayacucho and Brasilia declarations, our integration model has the following as guiding principles:

I. Solidarity and Cooperation: in search of greater equity, poverty reduction, diminishment of asymmetries and strengthening of multilateralism as a guiding principle for international relations.

II. Sovereignty, respect for territorial integrity and self determination of people according to principles and goals of the United Nations, that ensures the prerogative of States to decide on their development strategies and their relations at the international level, without external interference in their internal affairs.

III. Peace, so that South America remains as a Zone of Peace where international conflicts are solved through peaceful settlement of controversies.

IV. Democracy and Pluralism in order to consolidate an integration without dictatorships and respectful of human rights and human dignity, for native peoples, Afro-descendants and migrants, with gender equality, respect of all minorities and their cultural and linguistic manifestations and acknowledging contribution of social movements and civil society organizations, and their right to democratic participation in every South American country and in the process of integration.

V. Human Rights are universal, interdependent and indivisible. Similar effort should be given to developing both civil and political rights, as well as to economic, social and cultural rights, thus recognizing right to development as a fundamental right, under the integrating and multidisciplinary principle of human rights.

VI. Harmony with Nature for a sustainable development, assuring environmental concerns and those related to climate change are present in every initiative of regional development, particularly in those related to infrastructure and energy, thus preserving ecosystems balance and protection of biological diversity, with recognition and valuing of traditional knowledge.

3) Premises for Constructing South American Integration

The process of constructing this integration is ambitious and precise in its strategic objectives, while at the same is flexible and gradual in its implementation. It allows participation of every country in the region, while enabling commitments according to corresponding realities. The most appropriate way is progressing in common public policies while respecting the timing and sovereignty of each country.

Our integration rests on strategic alliances based on commitment to democracy, strengthening of political dialogue, creation of a space for coordination and conciliation, contribution to regional stability, the articulation of regional social policies and the valuating of a South American cultural identity with participation of local and regional actors.

4) The objectives of integration

South American integration proposes the following regional goals, based on a series of actions for immediate impact to reverse the enormous social deficit in the region, with an emphasis, at this stage, on the first four goals:

 Overcoming asymmetries for an equitable integration: development of specific and effective procedures to solve the great inequalities between countries and regions in South America.

 A new South American Social Contract: promotion of integration with a human face coordinated with a productive agenda, which is expressed in defined goals of social development and systematic assessment mechanisms.

 Energy integration for well being of all: coordination of national strategies and policies in order to take advantage of the regional energy resources in an integrated, sustainable and supportive way and that recognizes asymmetries between countries and regions.

 Infrastructure for the interconnection of our peoples and the region: promotion of communication of the region through the construction of transportation and telecommunication networks to interconnect countries, thus meeting requirements for social and economic sustainable development, in order to accelerate the process of integration while preserving the environment and the balance of ecosystem.

 Economic and commercial integration: to achieve advances and the consolidation of innovative and dynamic convergence, towards the establishment of a trade system that is transparent, equitable and balanced, and that secures effective access. Economic growth and development will be a fundamental objective, with the overcoming of asymmetries, through complementing the economies of the South American countries, as well as the promotion of wellbeing of all sectors of the population and the reduction of poverty.

 South American financial integration: development of innovative financial mechanisms compatible with the specific conditions of the economic and regulation policies of our countries, in order to support the implementation of projects for South American integration.

 Industrial and productive integration: to encourage industrial development and common innovation, favoring the important role played by small and medium companies, as well as other forms of productive organization, and supporting the coordination of regional initiatives, both public and private, taking advantage of the potential synergies, among other factors.

 Towards South American citizenship: to progressively advance towards the recognition of civil, political, labor and social rights of individuals of a member State in any other member State.

 Migration: to integrally and comprehensively approach the topic with unrestricted respect for human rights and aiming to an effective cooperation, particularly in strategic areas such as links between migration and development and the harmonization of policies. In that sense, the importance of International Convention on the Protection of the Rights of Migrant Workers and their Family Members is highlighted.

 Cultural Identity: to promote recognition, protection and valuing of every expression in the South American cultural heritage, both national and common to the continent, in order to develop projects for promoting pluriculturalism and facilitating the circulation of the representative cultural expressions of the memory and identity of our peoples.

 Cooperation in the environmental issues: work to develop proposals to preserve biological diversity, water resources and ecosystems and mitigate adverse effects of climate changes, thus ensuring sustainable development and taking preventing measures against different kinds of catastrophes.

 Citizen participation: to develop dialogue mechanisms between the institutions of the South American Community of Nations and civil society that would allow a greater participation in formulating policies for South American integration.

 Cooperation in Defense aspects, to insist on promoting the exchange between the Ministries of Defense in member countries, regarding information on experiences on doctrines and personnel training.

Strategy Plan for Enhancing South American Integration

A) Strengthening the institutional aspects of the South American Community of Nations (CSN)

1. The South American Community of Nations relies on the following institutions:

a) Annual Meetings of Heads of State and Government
b) Bi-annual Meetings of Ministers of Foreign Affairs
c) Meetings of Sectoral Ministers
d) Commission of High-level Functionaries
e) A Pro Tempore Secretariat

2. Decides to establish a Commission of High-level Functionaries which at the executive level will ensure the implementation of presidential and ministerial decisions and coordinate existing initiatives, preventing duplicity of efforts and proposing specific initiatives in the framework of the major regional goals and actions of immediate impact. The Commission will count on the cooperation of CAN, MERCOSUR and ALADI Secretariats as well as other regional organisms, as appropriate.

3. With support of the relevant regional organizations the Commission should establish working groups in areas of infrastructure, energy integration and social policies. The groups shall propose, under consideration of the Ministers of Foreign Affairs and Sectoral Ministers, agendas and specific initiative in those areas.

4. Also within the scope of the Commission of High level Functionaries, a Temporary Working Group supported by CAF should deepen studies and elaborate proposals related to the creation and adaptation of financial and development mechanisms for South America.

5. The Commission of High level Functionaries should ensure the enhancement of the institutional links between MERCOSUR and CAN with full participation of Chile, Guyana and Surinam. The Commission shall promote joint meetings of MERCOSUR and CAN institutions responsible for similar political and social matters, and will review the agreements already achieved by CAN and MERCOSUR in those areas, in order to examine the possibility of their extension to all the countries of South American.

6. The Commission should count on the technical support of a small unit located in Rio de Janeiro during the first year. Proposals made by the Commission of High-level Functionaries should be approved by consensus.

7. Commission of High-level Functionaries will take responsibility for studying the elements of a Constitutional Agreement leading to the strengthening at the international level of a true South American identity and citizenship, based on common values regarding democracy and human rights, and on the construction of a common future of peace and socioeconomic prosperity.

8. The Commission of High level Functionaries and particularly, the Working Group on social policies should be responsible for promoting a dialogue with various members of civil society and proposing more institutional mechanisms which should enable a systematic information to encourage participation and gathering of proposals from different sectors of civil society, taking advantage of the experiences of CAN and MERCOSUR. During the interaction with civil society, the experience acquired at the Cochabamba Social Summit should be taken into special consideration.

9. The Commission of High level Functionaries should work in the following subjects, based on proposals by member countries and contributions to be proposed by the Pro Tempore Secretariat:

a. Institutional Convergence
b. Economic development and employment creation
c. Commercial integration
d. Energy integration
e. Integration in the area of transportation and communication infrastructure
f. Asymmetries
g. Productive integration
h. Innovation, research and development
i. Information and communication technologies
j. South American financial mechanisms
k. South American Social Agenda
l. Environmental Aspects
m. South American Citizenship
n. Cultural Identity
o. Citizen participation in the Integration Process

B) Political Dialogue

1. Political coordination among countries of the Community should be a factor of harmony and mutual respect to strengthen regional stability and to sustain the preservation of democratic values and respect for human rights and human dignity, identifying lines of coordinated action to confront situations of common interest to the countries of the region. Joint declarations of the Community should always be adopted by consensus.

2. The South American Forum for Political Coordination and Consultation should promote a dialogue on topics of common interest, with initiatives that ensure the region as a differentiated and dynamic factor in its external relations. This Forum should always act by consensus.

C) External Dialogue

1. The initiatives of external dialogue and cooperation of the South American Community of Nations (CSN) with other regions and regional groups should be intensified. The Foreign Ministers will follow up the initiatives resulting from the South American – Arab Countries Summit and the South America-Africa Summit and will begin the preparations for a South America – Asia Summit.

D) Coordination in the WTO and multilateral financial institutions

1. The Ministers of Foreign Affairs, Foreign Trade and Economic Affairs of the countries of the Community, taking into consideration the special needs of small and vulnerable economies, should reinforce the practice of agreement and consensus building in central issues of the international agenda. This coordinated action, which is already taking place among several countries in the region in the WTO Development Round, should be reproduced in other relevant fora.

E) Parliaments

1. The Presidents invite the Andean Parliament and the Parliament of MERCOSUR, as well as the legislative bodies of Chile, Guyana and Surinam, to consider the design of mechanisms tending to the establishment of a South American legislative space.

F) Date and place of the III Heads of State Meeting

1. The Third South American Community of Nations Heads of State Summit (CASA) will be held in ______________________ on _____________________ 2007.

FOR THE REPUBLIC OF ARGENTINA

FOR THE REPUBLIC OF BOLIVIA

FOR THE FEDERATIVE REPUBLIC OF BRAZIL

FOR THE REPUBLIC OF CHILE

FOR THE REPUBLIC OF COLOMBIA

FOR THE REPUBLIC OF ECUADOR

FOR THE COOPERATIVE REPUBLIC OF GUYANA

FOR THE REPUBLIC OF PARAGUAY

FOR THE REPUBLIC OF PERU

FOR THE REPUBLIC OF SURINAME

FOR THE ORIENTAL REPUBLIC OF URUGUAY

FOR THE BOLIVARIAN REPUBLIC OF VENEZUELA