The logistics and transportation problems of Latin American integration efforts : the Andean Pact : a case of study

Logistics and transportation infrastructures are recognized as having a significant impact on making a regional integration scheme work as intended. The success of the European Community in bringing countries together is thought to have been achievable due to their integrated logistics and transportation infrastructures. Unfortunately, this is not the case for Latin American countries. Although many regional agreements have been in place for many years, their limited success in accomplishing the goals of integration is attributed in part to the lack of a regional logistics and transportationnetwork.To understand to what extent the logistics and transportation infrastructure has affected the integration of Latin American countries during the last thirty years, the case of the Andean Community is used in this study. The Andean Community is not a perfect union. For example, its geographical settings lack some of the economic advantages of other, more natural integration areas. This is one of the many reasons why its intraregional trade has historically been so low. Only in the last few years has significant growth in the infra-Andean trade been accomplished.The apparent lack of roads and the poor condition of the country infrastructure does not appear in this study have played a negative role in integration. As demonstrated in this study, the countries have used their roads, vehicles, vessels, and all natural means of transportation (rivers, lakes, and natural passes) to move cargo from one country to another.This study has found that the archaic regulatory environment affects the efficient physical movement of goods more than the length or quality of the roads.As we find through the analysis of the patterns of intra-Andean trade, the Andean Group has more than doubled its regional trade since the beginnings of the Nineties. This Increase on trade is a consequence of the new trade liberalization policies, bilateral trade agreements and new orientation toward promoting growth through exports.Further study is suggested in the areas of the impact of national legislation on regional trade and transportation, the role played by freight forwarders and multinational companies, and the role of multimodal transportation in the region.