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On 1 July 2000 regulations to liberalize trade flows between Mexico and the European Union came into force, after more than six years of diplomatic work and complex negotiations. These regulations are part of the "Tratado de Libre Comercio (TLCUEM), which is also one of the components of the Agreement on Economic Association, Political Concertation and Cooperation ("Global Agreement"). The Global Agreement through its three components - political dialogue, trade liberalization and cooperation- was at the time the most ambitious agreement ever constituted by the EU. The economic association component included in the Global Agreement - the TLCUEM- was the first overseas free trade treaty and served as an important precedent for later EU negotiations with other Latin American countries. The purpose of this essay is to analyze the reasons that led Mexico and the EU to the constitution of this treaty; to describe the main challenges of the Global Agreement negotiations of different components; and to briefly review the results of the first three years since the TLCUEM enforcement.
Since the entry into force of the results of the Uruguay Round, Latin American Countries have embarked in active trade policy based on negotiations of Free Trade Agreements. These agreements cover a wide range of goods, services and new trade issues. The models followed in negotiations with the United States are based on NAFTA provisions. The European Union has adopted a GATS type approach although some difference exists. This paper analyses the services provisions negotiated by the United States and the European Union with Latin American countries. The paper focuses its analysis on the differences between the different models and the results achieved.
The face of international trade is continuing to change rapidly. But while much attention is focused on where, post-Cancun, any new international negotiations under the auspices of the WTO may go, there are other developments of potentially equal importance. The United States, in particular, is prioritizing new regional trade agreements. This book focuses on the most ambitious of these negotiations -- the Free Trade Area of the Americas Agreement, which is due to be completed in 2005. This US initiative aims to replicate the NAFTA Agreement (which has bound the US, Canada and Mexico into a free trade area since 1994) across all 34 countries of South and North America (bar Cuba). This huge continental market is to be built around US-defined notions of free trade and protection of foreign investment, but will exclude the free movement of labour. This volume explains the origins and process of the negotiations -- both the complicated multilateral discussions and the bilateral agreements that have already been drafted. It explains in detail: * US strategy. * The structures and procedures of the Agreement. * The possible consequences for South America, including: Mercosur; Brazil, as Latin America's largest economy; and the region's many small economies, which cannot possibly compete on a level playing field with the US behemoth. * The wider implications of the FTAA for the global trading system, in particular for China, Japan and the EU. This book -- the first comprehensive, in-depth study of the FTAA -- will be of use to trade specialists, international economists, and all those interested in the FTAA, about which very little information is readily available in the public domain.
The North American Free Trade Agreement (NAFTA) ranks at the top of anyone’s list of the most controversial trade deals of all time. Reviled by critics as unfair and as a job destroyer, praised by its defenders as having a documented record of success in spurring economic growth, NAFTA reduced tariff barriers to zero for the United States, Mexico, and Canada and led to a tripling of trade among these three countries over the last 23 years. The Peterson Institute for International Economics (PIIE) has abundantly detailed the many gains and acknowledged costs of NAFTA in numerous publications. Now that President Donald Trump has launched a renegotiation of NAFTA—having at least for the moment abandoned his 2016 campaign pledge to cancel the pact outright—the fundamental question is: Can such a renegotiation produce a positive result? A broad range of experts who have contributed to this PIIE Briefing say “yes.” The new negotiations can succeed only if they focus on how the agreement can be updated and upgraded, however. NAFTA can be modernized only if President Trump’s zero-sum “America First” agenda is replaced by one that seeks to benefit all three countries and improve their competitiveness in an increasingly competitive global economy. Prioritizing American interests is of course essential in any US trade negotiation. But an obsessive concern about bilateral trade balances and narrow special interests in the United States, as opposed to broader national and regional interests, would not only deadlock the negotiations but also likely lead to inferior outcomes for all three countries, or even a breakdown in the talks and an abrogation of the agreement. And walking away from NAFTA altogether would be disastrous for consumers, producers, and retailers in the United States. As argued in several chapters of this Briefing, abandoning NAFTA would degrade regional competitiveness and terminate jobs across North America, undoing the integration achieved since the agreement’s inception.