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The new post was conceived as a first step towards the creation of a permanent bureaucratic body for a supranational union, which will eventually replace the political bodies of Mercosur and CAN.The headquarters of the secretariat is located in Quito.The Congress was attended by Gran Colombia (including present-day Colombia, Venezuela, Panama and Ecuador), the Federal Republic of Central America (including present-day Costa Rica, Nicaragua, El Salvador, Honduras and Guatemala), the United Mexican States, and Peru.The ostensible intention was to form a defensive league that could prevent foreign expansionism and foster the interests of the Spanish American republics.
Panama and Mexico attended the signing ceremony as observers.
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.
The Congress' conclusions, however, were not ratified by the participants, except for Gran Colombia.
Soon after, both Gran Colombia and the United Provinces of Central America fell apart and the whole of Hispanic America was balkanized by competing national governments.