By the 1970s, economic nationalist policies precluded the establishment of a common market for Latin America. Efforts were made in early eighties for formation of the Latin American Integration Association (LAIA). But deterioration of relations, especially between Argentina and Brazil, contributed to the lack of regional progress. Rivalries were seen in the management and exploitation of natural resources. Several countries of Central and South America fiercely claimed oil, water, fisheries and mineral resources in the region. Furthermore, violence and civil war spread in Central America and this was directly related to the superpower rivalry in the region. 

 In late 1980s, democratisation changed the aggressive mindsets of Brazil and Argentina.  After decrease of political tension, several agreements were made among the Latin American Countries, like Treaty of Integration and Cooperation, and PICAB. Latin American countries pursue the same policies through a common front and regional cooperation. 

 The milestone in regionalism/regional cooperation in Latin American countries was the treaty of MERCOSUR in November 1991, which was signed by Uruguay, Argentina, Paraguay, and Brazil.  The Latin American regional integration involved the entire Western hemisphere, via, the Organisation of American States (OAS), the North American Free Trade Area (NAFTA) and the proposed Free Trade Area of the Americas (FTAA). 

Regional integration moves in Latin America in the 1960s and 1970s had a different motive than the steps taken in the 1980s and 1990s. In the earlier period, the policies followed under the guise of regionalism were largely protectionist and inward- looking. In contrast, later is in line with liberal economic agenda in trade and investment.