Free Trade in South America: Mercosur and Other Groups

For the past 75 years, South America experienced many economic developments. This kind of economic development is trying to strengthen the relationship with other economic powers. The European Union (EU) has created European countries after World War II without tariff and tariff one-way trade, as well as a way to share knowledge of industrial development. After the establishment of the EU, it is clear that if the US wants to compete on the world stage, they need to implement a general market.

Regulation of international trade is conducted globally by the World Trade Organization (WTO) and through several other regional arrangements, and with Mercosur including South America, the United States, Canada, Mexico (NAFTA), the European Union (EU) There is an independent country of North American Free Trade Agreement 27

Major trading groups (or contracts) in this region are the Pacific alliance and the South common market. Minor groups and trade agreements G3 Free Trade Agreement, Dominican Republic - Central American Free Trade Agreement (DR - CAFTA), the Caribbean Community (Kalikom) and the UN Andean Community (CAN). However, taking the reverse integration, trading large restructuring, Venezuela has officially withdrawn from CAN and G3, and is officially incorporated into the Southern joint market (legislated approved paraguay). Ecuador's election as President shows that his intention is to follow the same path. Although Uruguay displayed its intention, the group is nominally opposed to a free trade agreement (FTA) signed in the United States. Only Chile, Peru, Colombia and Mexico signed a free trade agreement between the US and Canada, a member of the North American Free Trade Agreement (NAFTA).

In the absence of US participation, 20 trade agreements are negotiated within the hemisphere. The EU agreed to sign a free trade agreement with the southern common market countries. The South Common Market is the largest trade agreement in Latin America. Argentina, Brazil, Paraguay and Uruguay. Only the southern common market country has a 220 million consumer market and GDP exceeds 1 trillion dollars. In 1996, the two-way trade between the US and the Southern Common Common Market was about $ 30 billion (Harbrecht 49). Brazil is the world 's eighth largest economy and is a single economic power in the US export markets in Latin America and the Caribbean. GDP in 1994 was $ 472.5 billion. Among the Brazilian total imports in 1995, US goods accounted for 21.1%. The EU also agreed to negotiate a mutual agreement with Chile. Chile also increased by 6% in 1996 (Harbrecht 47). It is time for the United States to do the same.