Why Is There No Free Trade Agreement Between North And South America?

2417 Words Oct 21st, 2014 10 Pages
Why is there No Free Trade Agreement between North and South America?

One of the economical trends in the past years is to have open markets and to trade among different states. This can be seen more then ever in the Americas where the majority of states are involved in regional trade blocs and also bilateral trade agreements. Since the 1990’s the Free Trade Area of the America’s (FTAA) as been in negotiation, which involves two main groups Southern Common Market (MERCOSUR), which is an economic and political agreement between states such as Argentina, Brazil, Paraguay, Uruguay, Venezuela and associate states Chile, Colombia, Bolivia, Ecuador and Peru. Then there is The North American Free Trade Agreement (NAFTA). NAFTA is an agreement between Canada, Mexico and the United States (US), that establishes a rule based trade bloc among the three in North America.
The FTAA is a free trade agreement that when written or put into practice is like another NAFTA but on steroids, meaning that it includes all the countries in the western hemisphere except for Cuba and involves majority of rule and regulations that are in NAFTA. When looking at all the states that would be involved in the FTAA, the population that FTAA would be dealing with is of 800 million and a GDP of about $11 trillion, making it the largest freed trade area in the world. (Barlow 1:2001) The FTAA has struggled to see any changes and the deadline passed being unnoticed in 2005.

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