South American countries are facing, more than ever before, the real impact of the global market. Most states have risen to the challenge and taken steps to restructure their economies and strengthen their public institutions.
All Latin American countries are engaged in a drive to produce and export more, while tourism is seen as one of their biggest potential foreign exchange earners. All have introduced regulations to make foreign direct investment easier and more secure.
Spreading the trade net wider is a top priority. Last year the presidents of Ecuador, Colombia, Peru, Venezuela and Bolivia – the member states of the Andean Community (CAN) – signed the Santa Cruz de la Sierra Declaration to reaffirm their commitment to establish a common market and new trade tariffs from next year.

The declaration includes agreements on a customs union, a common agricultural policy, a common foreign policy and standardization of macroeconomic policies. A further summit will be held in Caracas in May to further discuss Andean integration.
Meanwhile, Brazil is seeking greater integration between CAN and Mercosur, the Common Market of the South, to find new markets and prepare for final Free Trade of the Americas (FTAA) negotiations. The creation of the FTAA is scheduled for 2005.
Washington views Peru as an influential member of the Andean Community. Political stability is vital in the region and democratic consolidation will yield results for all CAN states. Trade with them is set to increase as new legislation is in the pipeline.

Trade among the CAN countries reached $5.68 billion in 2001, a 10 percent increase on the previous year. Colombia exported $2.77 billion to its Andean Community neighbors last year, a 26.7 percent increase; Ecuador $778.7 million, a 17.5 percent rise; and Peru $518 million, a 16 percent rise. However, CAN exports to the rest of the world fell 12 percent.
The Andean nations are looking at tourism as one of the best areas of development and foreign exchange earnings. Ecuador, Colombia and Peru each offer enormous potential in this area, although there is concern that the environment is not damaged as a result.

Several international agencies are invol-ved in sustainable development programs. The Inter-American Development Bank, for example, has made a grant of $300 million to Ecuador, some of which will be used for environmental programs.
From the Amazon basin to the snow-capped Andes, and from the pristine Pacific beaches of Ecuador and Peru to the Caribbean coast of Colombia, these three countries offer tremendous scope for eco-tourism and adventure tourism.