Free Trade In Latin America And The Caribbean

Submitted By pao72blanco
Words: 2697
Pages: 11

The initiative to implement free trade in Latin America and the Caribbean began in the 1990’s. The Summit of the Americas was held in Miami in 1994. This was the beginning to homogenize all economies of the Western world under a single sign. The heads of state and government from 34 countries agreed to establish the FTAA, or Free Trade Agreement of the Americas, which would progressively reduce barriers to trade and investment. These negotiations appeared in the media as a new continental alliance for integration, obeying the logic of interests, and trading blocs rather than a regional agreement for the development of the region. Initiatives for the American continental integration are not new, but result from multiple regional agreements initiated by the decades of 50 and 60 in Latin America. (Devlin, Estevadeorda, Salamanca 5)
What began as an idea itself was particular pressure not to stay out of international trade, but integration into the dynamics of globalization to get goods essentially international. While trying to stop the growth of Asian economies with high growth and low costs and put into comparison as role models for dependent economies. However, the processes that includes the continued entry of transnational companies in the regions of Latin America and the Caribbean to revitalize trade agreements dating back some years earlier. The Andean Free Trade Agreements (TCL), closed by Colombia and Peru, put in conflict the Andean Community of Nations (CAN).
The crisis was caused by the Association of Free Trade in Latin America and the Caribbean (ALALC) in the mid-60’s, when the sticking point was the non-removal of agricultural structures, forming another block known as Cartagena Agreement/Andean Pact in 1969 and later known as CAN. It was configured with the same structures as ALALC, or hegemonic principles, the prospect of entering markets weaker. (O’Keefe, 11)
In the 70’s, intervention nationalist governments like that of Salvador Allende in Chile and Juan José Torres in Bolivia, legal provisions put restrictions on foreign capital: delimitation of areas for investment, progressive nationalization of enterprises, inaccessibility to local credit limits on profit repatriation, registration and control of technology provisions that were left out in the mid 70's. The promotional role of the state, industrial complementation, ideological pluralism, and the increasing penetration of multinational companies, sector programming, and others were overturned by the wave of dictatorships throughout Latin America, and fascist regimes. This led to a regression political, institutional, cooperative integration, while the implementation of neoliberal fundamentalism in all regional blocs and the signing of tighter integration processes under the umbrella of free trade agreements.
It was from the creation of the World Trade Organization that the U.S. pressured all the blocks of nations to form regional free trade areas, taking shape only in 1994 with the creation of the FTAA. The basis of these agreements was to follow the guidelines set by the International Monetary Fund (IMF) and World Bank (WB) in economic policy.
In addition to the FTAA is a series of Treaties that include bilateral and multilateral agreements with the United States, CAFTA (CAFTA), which is the treaty between the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the United States. The Treaty includes not only trade but other mechanisms. It is more decisive in terms of the sovereignty of countries with government bans, yet with exceptions for foreign companies for investment, non-discriminatory treatment, intellectual property rights, market access, flexible services and access to public tenders. In other words, the transformation of privileges guaranteed rights for transnational corporations, which can be secured to the extent that their ratification by the legislative bodies makes TLCA-US a Law of the Republic, giving