Friday, May 11, 2012

Economic Alliances

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Economic Alliances


An Analysis of Free Trade Agreements


Free Trade Area of the Americas (FTAA)


Central American Common Market (CACM)


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Southern Cone Common Market (Mercosur)





Free trade which is the backbone of the American’s economy is often defined as trade or commerce carried out without such restrictions as import duties, export bounties, domestic production subsidies, trade quotas or import licenses. Free trade agreements are set in placed by several statues, regulations, and various economic alliances throughout the United States and the world. Three major trading blocs or economic alliances are the Central American Common Market, Southern Cone Common Market, and the Free Trade Area of the Americas.


FREE TRADE AREA OF THE AMERICAS (FTAA)


Countries Included


• United States


• Canada


• Mexico


• South America


• Central America


Objectives


• Promote prosperity through increased integration and free trade


• Establish a Free Trade Area in which barriers to trade in goods, services and investment are progressively eliminated by no later than 005


• Maximize market openness


• Facilitate integration of smaller economies into the FTAA


• Strive to make trade liberalization and environmental policies mutually supportive


• Secure observance and protection of worker rights


CENTRAL AMERICA COMMON MARKET (CACM)


Countries Included


• Costa Rica


• El Salvador


• Guatemala


• Honduras


• Nicaragua


Objectives


• Eventual liberation of intra-regional trade


• Establishment of Free Trade Area


• Maximize export revenue, that results from product diversification in the country


SOUTHERN CORE COMMON MARKET (MERCOSUR)


Countries Included


• Brazil


• Argentina


• Paraguay


• Uruguay


• Chile


• Bolivia


Objectives


• Establishment of a Free Trade Zone


• A common external tariff


• Free movement of capital, labor, and services


• Reduction of customs tariffs


• Elimination of non-tariff barriers





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