Agreements of free trade on the American territory
NAFTA and MERCOSUR, which represent 439.8 million and 220 million people, are emerging as two of the most dynamic regional entities in the world. Built around a powerful economic center, (the United States for NAFTA and Brazil for MERCOSUR,) these agreements have created a strong growth of trade between member countries and became arguably, areas of attraction for domestic and foreign investors, especially European, in the last few years.
There is, however, no relationship or negotiating blocs between NAFTA and MERCOSUR. Similarly, there is no consensus among the countries of South America and the United States on the possible content of a possible free trade zone in the Americas. In fact, a free trade zone is created when two countries agree to allow the movement of their goods and services free of customs duties.
Such a zone is distinct from other regional integration such as a customs union, economic union or common market. In an area of free trade, the parties remain free to implement trade policies of their choice to third States and disagree with any formal requirement for the harmonization of public policies or economic. The relations between MERCOSUR and NAFTA reveal a strong rivalry between Brazil and the United States.
Indeed, no free trade agreement has been created between the two regions, and thus there is a rivalry between them. The Free Trade Agreement North American Free Trade Agreement (NAFTA) is an agreement on economic cooperation and free trade between Canada, the United States and Mexico dating from the 1st January 1994.
NAFTA is the free trade area the largest in the world. The agreement thus establishes the rules governing trade and investment between the three countries (to get to North American companies a fair and predictable environment they need to make trade). Indeed, these companies can trade and invest while being aware of the existence of rules guaranteeing fair treatment.
Previously, Canada and the United States had already concluded a free trade agreement in 1989: the FTA. On June 10, 1990, they and Mexico agreed to create a new free trade agreement and begin negotiations in 1991. On December 17, 1992, leaders of three countries signed NAFTA, effective January 1, 1994. (It has 8 parts, 22 chapters and about 2000 pages). Note that in 1993 the three partners have negotiated side agreements on labor and the environment.
The total production of North American bloc totaled $ 16.2 billion and the population of NAFTA has 439.8 million people (33 million in Canada, 301.6 million in the U.S. and 105.2 million in Mexico). As for the main languages, the most widely used are English, Spanish and French.
The North American partnership represents a significant competitive advantage for Canada as the prosperity of this country is based on openness to trade and international investment. For Mexico, the Agreement has modernized its economy and place it among the largest exporters in the world. Finally, the United States (as the other two countries), NAFTA allows the country's prosperity.
The three governments have resolved, in particular, to strengthen ties of cooperation between the three countries contribute to the development of world trade to contribute to sustainable development, but also to increase the competitiveness of their firms in international markets. They also agreed to create new employment opportunities, improve working conditions, to enforce basic workers' rights and living standards in each of their territories.
Tags: American territory; Brazil; free trade; agreements on free trade