Why Is There No Free Trade Agreement Between North And...

Why is there No Free Trade Agreement between North and South America? Intro: One of the economical trends in the past years is to have open markets and to trade among different states. This can be seen more then ever in the Americas where the majority of states are involved in regional trade blocs and also bilateral trade agreements. Since the 1990’s the Free Trade Area of the America’s (FTAA) as been in negotiation, which involves two main groups Southern Common Market (MERCOSUR), which is an economic and political agreement between states such as Argentina, Brazil, Paraguay, Uruguay, Venezuela and associate states Chile, Colombia, Bolivia, Ecuador and Peru. Then there is The North American Free Trade Agreement (NAFTA). NAFTA is an†¦show more content†¦The essay will show how history can affect states decisions. It will look at what the FTAA would bring to both North and South America (NA SA), while looking at individual states cases. It will conclude by looking at what needs to change if there is any hope for the FTAA in the futur e because the FTAA needs to benefit both sides equally for it to work and for an agreement to occur. History between NA and SA: To understand some of the reasons of why the FTAA has not come to be, it is important to look at a bit of history between both the NA and SA and why states positions and views about the FTAA are different. In Chile in 1970 when one of the candidates to presidency Salvador Allende from the socialist party won the election. This was apparently not acceptable for the US so, it intervened for change. It is a known fact that the US helped take out Allende. The US influence helped bring Augusto Pinochet to power through a coup. Pinochet during his rule is responsible for massive human right violations against the Chilean people. The US response was to look the other way. The US instead continued intervening in SA like Argentina, Uruguay, and Panama just to name a few, thinking they were doing what was right but it had opposite consequences. This is important to keep in mind because based situations like this SA states believe that the US judges other governments depending on the openness to US investment and trade. So