Latin American Free Trade Association

Summary of Latin American Free Trade Association

A now defunct association of various Latin American states formed to orchestrate the elimination of tariffs among members within twelve years of its formation (at the rate of eight percent). LAFTA was created by the treaty of Montevideo on February 18, 1960, and commenced activities on June 1, 1961. The association consisted originally of Brazil, Argentina, Uruguay, Mexico, Chile, Paraguay, and Peru. Colombia and Ecuador joined in 1962, Venezuela in 1966, and Bolivia in 1967. LAFTA members gravitated toward regional organizations, and the association was disbanded in 1981 in favor of a new organization, the Latin American Integration Association.

(Main Author: William J. Miller)