The U.S. Central American Free Trade Agreement Essay

Since the early days of Central American independence, Honduras has had the tragic fate of being frequently used as a transit point or launching area for troops attacking a neighboring country. For example, Honduras played a vital role in the overthrow of President Jacobo Arbenz Guzman in Guatemala in 1954 when Honduras served as training ground. Therefore, US influence has been more noticeable in Honduras than the other countries in the region. Additionally, the long history of the US fruit companies and their control of the banana republic’s economic benefits, opened the doors to capitalism in the US and Central America, which set a solid foundation for the US government to constantly protect and advance their economic and political

(Document A) In South America, Peru, Bolivia, and Ecuador share a major industrial resource, petroleum! Coffee is also an agricultural resource that all of the countries have. (Document A) There are also things like textiles, wood, food, minerals, cotton, sugarcane, corn, potatoes, and cacao. (Document A) Along with agriculture and other industries, Peru and Ecuador both trade with the United States as a major trading partner, while Bolivia trades with Brazil. (Document A) In Argentina, things like beef, grains, fruits, wheat, grapes, and sheep are produced. (Document B) In Central America, some major agricultural industries include bananas, coffee, and sugarcane. (Document C) Central America also produces nickel, iron ore, fish, timber, and oil. Some of Central America’s major trading partners are Honduras, Panama, Costa Rica, and the United

The Comprehensive Economic and Trade Agreement (CETA), is a progressive trade agreement for a strong middle class The Canadian-European Union. The Comprehensive Economic and Trade Agreement will affect jobs by treating them the same as those of the EU. Canada will gain new access to opportunities which include procurement above specified value thresholds of professional services such as architecture and engineering.

"Trade liberalization has transformed and improved Mexico's vibrant economy by effectively increasing trade and investment circulations. Within just a few years, Mexico's exports have actually diversified from mainly oil to include a selection of manufactured products, making Mexico one of the biggest exporters on the planet. While, one in 5 jobs in Canada is connected to international trade, and Canada's prosperity is built on its openness to international trade and financial investment. As such, the North American continental collaboration is without a doubt an essential competitive benefit for Canada. Canada is using this continental platform as a way to assist Canadian organisation accept commercial

The United States would face the negative consequence, as the US would suffer economic losses from a CETA due to trade diversion. Besides, the criticisms have been developed from some Canadian dairy farmers, as the agreement will weaken dairy supply management and increase corporate control over seed and environmental regulations. Similarly, another impact is it will affect the Canada’s local farmer. Since the European agricultural product like beef and pork are available in cheaper price, Canadian farmers will be forced to compete with generous European agricultural subsidies. Canadian farmers will gain little and loss

In the 1500s the first settlers settled in an area near the Gulf of Fonseca this territory would later be known as El Salvador. Soon after the territory was conquered by Spanish rule in 1524 and ruled by King Charles I of Spain until their independence in 1838 (Background, 2012). Struggling with the new found independence this new nation was curse with constant revolutions and over-turning of governments (Background, 2012). Situated in the middle of the fresh region called Central America this sovereign state had neither major resources nor growing economy, whereas other nations had an industry to depend on once the colonial power leaves this nation was forced to start from scratch.

The real situations that many Central Americans faced were either from backlash of communism resulting in U.S involvement or just straight up domination

Another well know grouping is NAFTA, a free trade agreement created in 1994 between the United States, Canada and Mexico. This created one of the largest free trade areas of the world. Its success has been astounding boosting trade between the member countries from $306bn to $930bn. However in more recent assessments it has been suggested that in the long haul it has been more damaging than helpful for Mexico; as an LEDC at the time some suggest it may have exploited. Suggestions are based on the assumptions that as a result of the NAFTA agreement Mexico's rate of development has been hindered. The most basic measure of economic progress, especially for a developing country like Mexico, is the growth of income (or GDP) per person. Out of 20 Latin American countries (South and Central America plus

The military is responsible for enforcement, which includes death squads, torture, and public execution. The big businesses who are able to extract an endless supply of 'minimum wage' labor, amass great wealth but instead of reinvesting it locally, most invest overseas or in capital intensive labor whereby local jobs are eliminated. Taking all this into effect and the fact that social classes and living conditions of many Central Americans are deteriorating rapidly leads some to rebellion. Some have taken a path of Passive rebellion. This can be seen in literature and popular music which questions the government.

The North American Free Trade Agreement (NAFTA), came into effect on January 1, 1994, creating the largest free trade region in the world, generating economic growth and helping to raise the standard of living for the people of all three countries participating. By strengthening the rules and procedures governing trade and investment, the NAFTA has shown to be a great base for adding to Canada’s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. NAFTA was designed with many economic results in mind. Hopes were that not only trade would be easier, cheaper, and easier for all countries involved, but economic wealth and growth would follow. The support for NAFTA was spilt among the

As the population of Latin America and the Caribbean ballooned to 190% increase in 1995, the living conditions of these people have steadily deteriorated. In 1990, 40 percent lived in poverty. The region’s per capita gross domestic product (GDP) had declined since 1980. On the contrary, while the majority of Latin America suffer deprivation, a tiny benefit from economic boom brought about in large measure by the selling of public assets and the opening of the region’s labor market to multinational companies. U.S. corporations and their subsidiaries earned $16.2 billion in profit in 1995.

58% of Americans agree that foreign trade has been bad for the U.S. economy because cheap imports have cost wages and jobs here.

Mexico isn’t as developed socially and economically as the other two countries involved and they have improved economically with the increase in industry and overall blue-collar jobs. Mexico’s economy has increased by thirty percent and overall investment between the USA and Mexico has increased by thirteen billion USD (United States Dollars) (Bowman and Goodwin). Most of this investment has come through agricultural exports with seventy percent of Mexico’s agricultural products now come from the United States, in fact six percent of all American exports are agricultural goods to Mexico (Bowman and Goodwin). This has lead to the belief that overall free trade is a good thing such as famous professor at the Wharton School of Business at the University of Pennsylvania, Morris Cohen, once

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations

It is now obvious that countries in Central America have been plagued by civil war, economic crisis, election fraud to finally transition into a political system granting the population the freedom to elect their leaders. El Salvador is no different than Costa Rica, Nicaragua, Guatemala and Honduras. One might notice that such issues arise due to political unrest in the region (Central America), thus creating a pattern of social, political and economic instability.