This paper was prepared in order to provide facts for evaluating the regional integration process within ALADI’s framework during year 2007.

The report starts with a general summary, which is followed by four sections. The summary presents the main contents. Besides, the information about legal instruments signed in 2006 is included in Annexe.

The first section, referred to the evolution of economy and world commerce, presents the elements to describe the main aspects of the international context and its conditioning effects on the economic growth and regional trade.

The second section is about the evolution of the economic activity and trade in the region. It analyzes the behaviour of the trade exchange between the ALADI member countries.

The third section presents specific results of the regional integration process in 2007, which are related to the different mechanisms of the 1980 Montevideo Treaty.

Finally, the fourth chapter presents the progresses of the internacional negotiations, considering extra-regional agreements of the ALADI member countries and the multilateral context.

Document prepared by the ALADI General Secretariat in compliance with point III.10 of its Action Programme 2008.