Monday, August 26, 2019

Mercosur and the Creation of the Free Trade Area of the Americas Essay

Mercosur and the Creation of the Free Trade Area of the Americas - Essay Example In this scenario, the bilateral relation between MERCUSOR and the United States takes a more significant stance (Lorenzo and Marcel). In order to understand creation of free trade in the Americas, it is vital to look at the economic incentives on private and social levels of distinct alternatives for trade liberalization. This implies that information is processed to comprehend the distinct negotiation process that is the bilateral as against plurilateral considering specific national interests in the region. The incorporation process includes many subjects such as intellectual property, harmonization of local policies on competition and labor and environmental standards. The main focus is aimed at looking at alterations in market access linked with the proposed trade liberalization, thus, opening ways for free movement of goods in America. The U.S population and pre-capital product are larger than that of the MERCOSUR countries; this gives the U.S an economic weight than the MERCUSO R countries. The United States has not ignored MERCOSUR countries as a tangible and valid voice in the FTAA negotiations; it has instead preferred to concentrate its efforts towards global ambit. Bilateralism could soon become the new aspect in bringing dynamism to the negotiation process. For instance, in 2003, there was accelerated trade negotiation between the United States with Caribbean and Central American countries. MERCOSUR was created in 1991 and since then, it has achieved regional integration as the fastest means of advancing the process of economic development in global arena. The process of creating free trade is an intricate process in that it includes unilateral opening, pluri-lateral preferential agreements, and multilateral negotiations. The main agenda for MERCOSUR was the establishment of free trade area for Americas (Lorenzo and Marcel 43). For instance, in South America, MERCOSUR has included Chile and Bolivia as associated nations and proposed establishment and creation of free trade area with States of the Andean community of Nations. In addition, MERCOSUR is focused in developing external negotiations because members states have demonstrated the potential to negotiate which increased their credibility. Despite the fact that MERCUSOR is focused in creating free trade in the region, these Nations have experienced internal tribulations that have eventually led to delays in completing their customs unions; this, in turn, has greatly damaged the regions or blocs credibility and negatively influenced its power to negotiate externally. As far as free trade area is concerned, the MERCOSUR is determined in accessing the U.S market and on ground that the free trade area will be beneficial if the U.S accepts access to its markets. At some point, MERCUSOR countries have demonstrated distinct degree of commitment to negotiations in the FTAA platform but their participation in these talks is inevitable because staying out from the negotiation is not a prudent idea since other nations are engaging in the negotiation. MERCOSUR members understand that the best and brilliant way is to work as a bloc or region since this strengthens their negotiating power (Lorenzo and Marcel 59-62). For regional or bloc countries, resolutions on matters of the old agenda such as agricultural rules,

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