Overview
At the Third South American Summit on 8 December 2004, presidents or representatives from 12 South American nations signed the Cusco Declaration, a two-page statement of intent announcing the foundation of the South American Community. Panama and Mexico attended the signing ceremony as observers.
The group announced their intention to model the new community after the European Union including a common currency, parliament, and passport. According to Allan Wagner Tizón, former Secretary General of the Andean Community, a complete union like that of the EU should be possible by 2019.
The mechanics of the new entity came out of the First South American Community of Nations Heads of State Summit, which was held in Brasília on 29–30 September 2005. An important operating condition of UNASUR is that no new institutions will be created in the first phase, so as not to increase bureaucracy, and the community will use the existing institutions belonging to the previous trade blocs.
Read more about this topic: Union Of South American Nations