The Free Trade Zone treaty signed by seven Latin-American countries (Argentina, Brazil, Chile, Mexico, Peru, Paraguay, and Uruguay) last February in Montevideo, is an unprecedented event in this part of the world. When it comes into effect by ratification of at least three of the seven countries the Latin-American Association of Free Trade will be created. It is destined to have considerable influence in the future of this continent if it proves to be an adequate instrument for attaining the goals in sight. These are two-fold: first, the intensification of trade; second, laying the groundwork for a more ambitious scheme of economic integration. Today, trade among Latin-American countries is about 10 per cent of their total international commerce. On the other hand, their economic development has been taking place along lines that are much too protectionist.