Shared Pasts, Common Futures: The Pursuit of Regional Integration in Latin America

Alexandra Black | Latin America Fellow

Image sourced from Cancillería del Ecuador via Wikimedia Commons.

In today’s globalised world, regional integration is a powerful tool for neighbouring states to advance shared interests. Here, countries agree to relinquish a degree of sovereignty and cooperate within a common institutional framework. The goal is to coordinate policy, pool resources, and strengthen collective influence.

There have been numerous attempts at regional integration in Latin America over several decades.  The Union of South American Nations (UNASUR), the Community of Latin American and Caribbean States (CELAC), and the Southern Common Market (MERCOSUR) are notable examples. However, these attempts have not compared with the robustness of  other international models, such as the European Union (EU) or Association of Southeast Asian Nations (ASEAN). Consequently, there is a widespread view that Latin American integration has never truly succeeded.

 At first glance, Latin America comes across as a natural candidate for regional integration given its linguistic and historical ties. The idea of Latin American unity has existed since the independence of most Latin American states in the 1800s. Today, 79 per cent of Latin Americans support their country’s integration with other Latin American countries. But is there still hope for a united Latin America? Integration, or at least meaningful regional cooperation, remains essential as cross-border challenges such as migration and climate change continue to grow.

Rather than revel in the discourse of failure, the region must look forward with pragmatism. The most promising path forward involves practical, issue-based policy coordination aimed at delivering tangible public goods and fostering development. There are already examples of this more pragmatic form of integration at work. By building on them, Latin American states can foster trust and lay the groundwork for a more enduring form of integration.

Past Efforts and Challenges

Generally, Latin America’s integration efforts so far have followed an economic approach largely modelled after that of the EU, seen widely as the gold standard. This approach centres on trade liberalisation, robust institutions, and a culture of tolerance and solidarity.

Yet by the standards of institutional development and trade integration, Latin American regionalism is often judged as unsuccessful. A primary reason is the region’s weak economic ties. Trade within Latin America accounts for less than a fifth of total commerce, restricting the ability of local firms to build supply chains, attract investment, or upgrade production. This weak connectivity leaves states more exposed to global competition and less capable of building shared economic capacity.

While movements like MERCOSUR and the Pacific Alliance pursued economic objectives, initiatives like UNASUR and CELAC embodied a more political strategy, aiming to challenge the dominance of the United States and pivot away from the free market orientation of the 1990s.

On the political front, persistent ideological divisions have made alignment fragile. These divisions have produced fragmented institutions marked by duplication and limited authority. The Venezuelan crisis, for example, exposed deep rifts within the region. UNASUR disintegrated under political polarisation, CELAC has struggled to act collectively, and MERCOSUR, despite its longevity, has often been paralysed by internal disagreements and protectionist impulses.

These examples point to a region that is continually caught between the ideal of integration, and structural and political realities. However, this does not mean Latin America lacks successful regional cooperation. Focusing solely on failures risks obscuring the pragmatic successes that have emerged across the region.

Informal policy alignment

There are multiple examples of states working together effectively, outside of the ideal of formal integration and in ways that do not bind them to a supranational institution or the relinquishment of sovereignty. This more flexible, ad-hoc cooperation focuses on delivering public goods in key areas such as health, migration, and environmental sustainability remains a worthwhile pursuit that requires cooperation and policy alignment.

The COVID-19 pandemic saw the Pan American Health Organization (PAHO) play a vital role in supporting national responses, including vaccine distribution and public health coordination. The Central American Electrical Interconnection System (SIEPAC) has facilitated cross-border energy trade. Colombia and Brazil are demonstrating strategic cooperation to protect the Amazon, and Argentina, Bolivia and Chile are working together to manage their shared lithium resources, which are crucial for clean energy transitions. The Pacific Alliance is a unique coalition between Chile, Colombia, Mexico, and Peru that aims to present a unified market to global actors. It does so without relying on major supranational institutions, enabling flexible coordination while linking markets and aligning trade policies.

These examples are all targeted at the delivery of tangible results, building interdependence through practice rather than a structured model. Regional policymaking is not a substitute for integration, but it is a more realistic and productive starting point.

Even UNASUR, South America’s most prominent integration attempt, has seen some practical success through sectoral councils. Its foundational treaty remains effective, and with countries like Brazil rejoining in 2023, there is still hope for its strengthening. By focusing on practical outcomes, states could quietly lay the groundwork for rebuilding institutions like UNASUR from the bottom up.

In Latin America, the way forward may not require new treaties or institutions, but a focus on strengthening what already works. The idea that integration has failed comes in part from applying models that do not fit the region. The focus on building large, formal structures has often distracted from more realistic and bountiful forms of cooperation. Integration should be redefined around practical policy coordination in areas where countries are already working together. These efforts should be treated as core strategies, not secondary ones.

Alexandra Black is the Latin America Fellow for Young Australians in International Affairs. She holds a Bachelor of Public Policy from the Australian National University, with minors in Development Studies and Spanish Language. Alexandra’s interest in Latin America is driven by her Peruvian heritage and experience living and working in the region. As a fellow, she has raised awareness about social, economic, and political developments in Latin America.