17‏/03‏/2008

ALADI

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ALADI

Dr Khalil Hussein
Professor at faculty of law at Lebanese university
Director of studies at Lebanese Parliament

Institutional Organization
The ALADI (Articles 28 and 29 of Montevideo Treaty 1980) has three political bodies: the Council of Ministers of Foreign Affairs, the Conference of Evaluation and Convergence and the Committee of Representatives, as well as a technical body, the General Secretariat
Conference of Evaluation and Convergence
The Conference of Evaluation and Convergence (Articles 33, 34 and 43 of TM80) is responsible for the evaluation of the whole integration process, as well as for promoting the partial scope agreements' convergence and larger scope actions on economic integration, aiming at its progressive multilateralization.
It has the following powers:
a) To examine the operation of the integration process in all its aspects and the convergence of partial scope agreements through their progressive multilateralization, as well as to recommend the Council the adoption of multilateral scope corrective measures;
b) To promote actions of broader scope regarding economic integration;
c) To periodically review the implementation of differential treatments, taking into account not only the evolution of the economic structure of the countries and consequently their degree of development, but also the effective use made by beneficiary countries of the applied differential treatment, as well as of the procedures aimed to improve the implementation of such treatments;
d) To evaluate the results of the system in favour of countries at a relatively less advanced stage of economic development and adopt measures for its more effective application;
e) To carry out multilateral negotiations to determine and deepen the regional tariff preference;
f) To foster negotiation and conclusion of regional scope agreements, wherein all member countries participate, which refer to any matter pertaining to the present Treaty, as per precepts of article 6;
g) To comply with all the tasks entrusted to it by the Council;
h) To commend the Secretariat such studies as it deems convenient; and
i) To adopt its own Rules of Procedure.
The Conference composed of Plenipotentiaries of member countries. It has a regular sessions every three years at the request of the Committee. It meets at any other time in extraordinary session, when convened by the latter to deal with questions of its specific competence. The Conference take its decisions with the presence of all member countries.
Article 43
The Council, the Conference and the Committee take their decisions by the affirmative vote of two thirds of the member countries. Decisions on the following matters excepted from this general rule shall be adopted by a two-thirds affirmative vote, provided there is no negative vote: a) Amendments or additions to the present Treaty;
b) Adoption of decisions corresponding to the higher governing policy of the integration process;
c) Adoption of decisions executing the results of multilateral negotiations to determine and deepen the regional tariff preference;
d) Adoption of decisions leading to give partial scope agreements a multilateral regional level;
e) Acceptance of accession of new member countries;
f) Regulation of the Treaty provisions;
g) Establishment of the percentages of member countries' contributions to the budget of the Association;
h) Adoption of corrective measures arising from the evaluations of the progress achieved within the integration process;
i) Authorization of a term of less than five years regarding obligations, in case of Treaty denouncement; j) Adoption of guide-lines to be followed by the Association bodies in their tasks; and
k) Establishment of basic rules governing the relations of the Association with other regional associations, international organizations or agencies.
Abstention does not mean a negative vote. Absence at the time of voting shall be interpreted as abstention. The Council may eliminate subjects from this list of exceptions by the affirmative vote of two thirds of the member countries, provided there is no negative vote.

Council of Ministers
The Council of Ministers is the highest body of ALADI and its Regulation was approved by Resolution 1 of the Council of Ministers First Meeting, on November 16th 1983.
It is composed of the Ministers of Foreign Affairs of the member countries, or any other Minister or State Secretary in charge of integration, and takes the highest political decisions concerning the process of integration.
The Council of Ministers meet when convened by the Committee of Representatives and only makes decisions when all Member Countries are present
The Council is the supreme body of the Association and shall adopt whatever decisions may correspond to the higher governing policy of the economic integration process. it has the following powers:
a) To issue general rules aimed at a better compliance with the objectives of the Association, as well as at the harmonious development of the integration process; b) To examine the results of the tasks carried out by the Association;
c) To adopt corrective measures of multilateral scope, following the recommendations adopted by the Conference as per terms of article 33, caption a) of the present Treaty;
d) To establish the guide-lines to be followed by the other bodies of the Association in their tasks;
e) To set the basic rules to govern the relations of the Association with other regional associations, international organizations or agencies;
f) To review and update basic rules governing convergence and cooperation agreements with other developing countries and the respective areas of economic integration;
g) To take cognizance of questions submitted by the other political bodies and decide upon them;
h) To delegate upon the other political bodies the power to decide on specific matters aimed at a better compliance with the Association objectivesi) To accept accession of new member countries;
j) To adopt amendments and additions to the Treaty as per precepts of article 61;
k) To appoint the Secretary-General; and
l) To adopt its own Rules of Procedure.
The Council composed of the Ministers of Foreign Affairs of the member countries. However, when in some countries the competence of integration matters is assigned to a Minister or Secretary of State other than the Minister of Foreign Affairs, member countries may be represented at the Council, with full powers, by the respective Minister or Secretary.
Committee of Representatives
he Committee of Representatives is the permanent political body and negotiating forum which analyses and approves all initiatives for fulfilling the aims of the Treaty.
Members: one permanent Representative of each member country with the right of one vote. Each Representative has a substitute. It meets every 15 days and its resolutions must have the affirmative vote of two thirds of the member countries
Its Regulation was approved by the Committee of Representatives' Resolution 1, on March 18th 1981, and modified later by Resolutions 184 and 234, of December 22nd 1993 and November 12th 1997, respectively.
The Committee of Representatives has one President and two Vice Presidents , who will substitute him, alternatively, when necessary, following the alphabetical order of the countries they represent, according to Article 6 of its Regulation.
The Committee is the permanent body of the Association and it has the following powers and duties:
a)To promote the conclusion of regional scope agreements, under the terms of article 6 of the present Treaty and, for that purpose, to convene governmental meetings at least once a year with the following aims: i) Give continuity to the activities of the new integration process; ii) Evaluate and guide the operation of the process;
iii) Analyze and promote measures to attain more advanced mechanisms of integration; and
iv) Undertake sectoral and multisectoral negotiations with the participation of all member countries in order to reach regional scope agreements basically referred to tariff cuts; b) To adopt the measures necessary to implement the present Treaty and all its supplementary rules;
c) To regulate the present Treaty;
d) To perform the tasks entrusted to it by the Council and the Conference;
e) To adopt the annual work program of the Association and its annual budget;
f) To fix the contributions of member countries to the Association budget;
g) To adopt, as proposed by the Secretary-General, the structure of the Secretariat;
h) To convene the Council and the Conference;
i) To represent the Association before third parties;
j) To commend studies to the Secretariat;
k) To submit recommendations to the Council and the Conference;
l) To present reports on its activities to the Council;
m) To propose formulae to solve issues brought forth by member countries claiming non-observance of some of the rules or principles of the present Treaty;
n) To multilaterally assess partial agreements as may be drawn up by the countries under the terms of article 25 of the present Treaty;
o) To create auxiliary bodies;
p) To adopts its own Rules of Procedure;
q) To take care of business of common interest not falling within the competence of the other bodies of the Association.
The Committee composed of a Permanent Representative of each member country with the right to one vote. Each Permanent Representative shall have a Deputy. It meets and adopt resolutions with the presence of two thirds of the member countries'
General Secretariat
The General Secretariat is the technical body of the ALADI. It carries out the diverse day-to-day work of the Association by proposing, evaluating, studying and managing, in order to achieve better the objectives of the Association. Secretariat staff is integrated by technical and administrative personnel with the Secretary-General at its head, supported by two Deputy Secretary-Generals. All these authorities are elected for a three year term, with the possibility of being reelected for three more years.
The Secretariat headed by a Secretary-General and composed of technical and administrative staff.
The Secretariat has the following powers and duties:
a) To submit proposals to the corresponding Association bodies, through, the Committee, leading towards a better accomplishment of the objectives and duties of the Association; b) To carry out the necessary studies to fulfill its technical duties and those entrusted to it by the Council, the Conference and the Committee, and to perform the other activities provided for in the annual work program;
c) To carry out studies and actions leading to proposals to member countries, through their Permanent Representatives, regarding conclusion of the agreements foreseen by the present Treaty, within the guide-lines established by the Council and the Conference;
d) To represent the Association before international economic organization and institutions in order to deal with questions of common interest;
e) To administer the Association assets and represent it for such purposes in public and private law acts and contracts;
f) To request technical advice and cooperation of individuals and national and international organizations;
g) To propose the creation of auxiliary bodies to the Committee;
h) To process and furnish member countries, in a systematic and updated manner, statistical information and data on foreign trade regulation systems of member countries in order to facilitate the preparation and carrying out of negotiations within the various Association mechanisms, as well as the further utilization of the respective concessions;
i) To analyze on its own initiative, for all countries, or at the request of the Committee, compliance of agreed commitments, and evaluate legal provisions of member countries which directly or indirectly alter concessions granted;
j) To call meetings of non-governmental auxiliary bodies and coordinate their operation;
k) To periodically evaluate the progress of the integration process and permanently follow up the activities undertaken by the Association and the commitments resulting from the agreements achieved within in framework of same;
l) To organize and put into operation an Economic Promotion Unit for relatively less developed countries and carry out actions to obtain technical and financial resources, as well as studies and projects to comply with the promotion program. At the same time, to draw up an annual report on the advantages obtained from the system in favour of the relatively less developed countries;
m) To prepare the Association's expenditure budget, for approval by the Committee, as well as such subsequent reforms which might be necessary;
n) To prepare and present to the Committee the draft annual work programs;
o) To comply with requests received from any of the political bodies of the Association; and
p) To present an annual report to the Committee on the results of the application of the present Treaty and the legal provisions derived therefrom. The Secretary-General shall be appointed by the Council.
In the performance of their duties, the head of the technical body, as well as the technical and administrative staff, shall not seed or receive instructions from any Government or national or international organizations. They shall refrain from any attitude not consistent with their character as international officers.
Member countries pledge themselves to respect the international nature of the duties of the Secretary-General and Secretariat staff or of its engaged experts and consultants, and to abstain from influencing them in the performance of their duties.

Auxiliary Bodies
TM80 establishes the creation of auxiliary bodies for consultation, advice and technical support, especially one with officers responsible for the integration policy of the member countries.
Consultation auxiliary bodies will also be created, composed of representatives of different areas of economical activity in each of the member countries.
The Committee of Representatives is responsible for the creation of theses auxiliary bodies.
Auxiliary bodies:
Council for Financial and Monetary Affairs
advice Commission for Financial and Monetary Affairs
Council of National Customs Directors
Budget Commission
Commission for Technical Advice and Cooperation
Transport Council for Trade Facilitation
Advice Council for Exports Financing
Tourism Council
Advice Council for Enterprises
Sectorial Councils
Labour Advice Council
Advice Commission of Customs Valuation
Advice Council for Customs Affairs.
Constitutional Text of the ALADI
The Constitutional Text of the ALADI is composed by the Montevideo Treaty 1980 (TM80), which creates the Latin-American Integration Association ALADI and nine Resolutions of the Council of Ministers of Foreign Affairs of the Latin-American Free Trade Association ALALC/CM/Resolution adopted when then Montevideo Treaty 1980 was signed and incorporated to ALADI's legal system.
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