mirage

The FTAA: Some Longer Term Issues

LACER-LACEA/Manakin Repository

Show simple item record

dc.contributor.author Estevadeordal, Antoni en
dc.contributor.author Garay, Luis Jorge en
dc.contributor.author Devlin, Robert en
dc.contributor.editor INTAL en
dc.description.abstract The Free Trade Area of the Americas (FTAA) process was launched during the Miami Summit of Heads of State in December 1994. It was the centerpiece of a broader hemispheric initiative of political and socio-economic cooperation among 34 countries of the Americas with the objective to negotiate a hemispheric free trade agreement by the year 2005. The preparatory phase began in January 1995 and formal negotiations were launched in April 1998. The creation of an FTAA would clearly be the most important chapter in the history of regional cooperation in the Western Hemisphere and mark a fitting culmination to a fast maturing trade policy framework in Latin America and the Caribbean. The FTAA process is the result of progressive globalization of the world economy and a profound transformation in the region based on: (i) structural economic reforms in almost all the countries directed at stimulating market activity and a better articulation with the world economy; (ii) the emergence, or strengthening, of democratic regimes almost everywhere and (iii) political commitments to foster peace and cooperation among neighbors with a history of rivalry and conflict. Regional integration has been a fundamental complementary tool for achieving these ambitious national objectives, which permeate the entire region. Latin America and the Caribbean have a long tradition of interest in regional integration. An intense amount of activity in this area emerged out of the Post-War period. However, the initiatives in the first three decades following the War inserted themselves in the prevailing state-led import substitution strategy of the time, itself to a large extent a product of "market skepticism" derived from the Great Depression. In the 1990s, however, a "new" regionalism emerged in Latin America and the Caribbean that conformed to the new national strategies for economic and political transformation and preparation for globalization. en
dc.subject Integration & Trade en
dc.subject Globalization & Regionalization en
dc.title The FTAA: Some Longer Term Issues en
dc.contributor.other REG-FUSION-ADM
dc.coverage.spatial ALCA
dc.date.accessioned 2011-02-11T18:03:33Z
dc.date.available 2011-02-11T18:03:33Z
dc.date.issued 1999-08-02
dc.identifier.isbn 950-738-087-6
dc.identifier.uri http://www.iadb.org/en/publications/publication-detail,7101.html?id=8638
dc.format.medium ACROBAT
dc.language.iso en
dc.subject INTAL ITD Occasional Paper N° 5
dc.subject Libre Comercio
dc.subject Integración Hemisférica
dc.subject ALCA
dc.subject INTAL
dc.subject Política Económica
dc.type Technical Notes
lacea.language.supported en
dc.date.modified 2015-06-12T10:36:27Z
dc.description.abstract2 The Free Trade Area of the Americas (FTAA) process was launched during the Miami Summit of Heads of State in December 1994. It was the centerpiece of a broader hemispheric initiative of political and socio-economic cooperation among 34 countries of the Americas with the objective to negotiate a hemispheric free trade agreement by the year 2005. The FTAA process is the result of progressive globalization of the world economy and a profound transformation in the region based on: (i) structural economic reforms in almost all the countries directed at stimulating market activity and a better articulation with the world economy; (ii) the emergence, or strengthening, of democratic regimes almost everywhere and (iii) political commitments to foster peace and cooperation among neighbors with a history of rivalry and conflict. Regional integration has been a fundamental complementary tool for achieving these ambitious national objectives, which permeate the entire region. Trade liberalization has been a centerpiece in the structural reform process. It has opened Latin American and Caribbean markets to unprecedented competition from the rest of the world, providing access to new and better consumer goods, and cheaper inputs and technology for production, investment and enhanced international competitiveness. The extent of the liberalization efforts in the last decade has varied from country to country, but overall trade in the region is more open today than it has been since the period before the 1930s. For awhile many doubted the seriousness of the FTAA initiative. But the launching of negotiations in April 1998, coupled with clear signs of gathering momentum, the FTAA now is clearly a regional process closer to becoming a reality. It thus is worthwhile to review, if only in a limited way, some economic policy and strategic issues that will condition the effects of the FTAA on its member countries. The paper begins with an overview of the context for the emerging new regionalism and the FTAA. This will be followed by a generic checklist of some of the potential benefits and costs that might be anticipated from an FTAA as well as another checklist of collective and national policy issues that could help to maximize the potential for favorable effects and minimize the costs. The last chapter will preliminarily develop one particular aspect of the FTAA, which will be an important determining factor of the balance of costs and benefits: the way in which the FTAA articulates with existing regional arrangements in the hemisphere. We close with some brief conclusions. Finally it is important to point out that for the purpose of analysis, the paper assumes that countries have assessed their alternatives and consequently are actively participating in the FTAA because they effectively share the objective of the Miami Summit, which the hemisphere¿s trade ministers have repeatedly reconfirmed in Denver, Cartagena, Belo Horizonte and San Jose. It also assumes that the FTAA will effectively emerge on or around 2005. Meanwhile, the chapter¿s scope does not permit an analysis of the world financial crisis, even though it is quite obvious that the FTAA, world trade and indeed any meaningful economic initiative, is threatened by systemic instability in international financial markets.


Files in this item

Files Size Format View

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record

Search LACER-LACEA


Browse

My Account