Twelve South American nations have signed an agreement to increase political and economic ties. On Friday, leaders signed a treaty forming the South American Union of Nations, modeled partly on the European Union. Brazilian President Luiz Inacio Lula da Silva said the grouping would increase regional integration.

Brazilian President Luiz Inacio Lula da Silva: “What seemed impossible happened. To the eyes of the skeptical, South America is today more integrated than ever, because we have just approved by unanimity the treaty of integration, the treaty of UNASUR.”

The agreement falls short of plans to merge regional trading blocs. But ongoing proposals include the creation of a South American defense council.