The answer seems to be that some Latin American countries will benefit from the creation of these mega-trade agreements, while others may get hurt.
Before we get into which countries will fall under each category, let's look at the facts.
In his annual speech to
The new proposal, an obvious effort to speed up
That would mean that car or pharmaceutical companies, for instance, could produce the same products for the U.S. and European markets, eliminating significant cost burdens due to regulatory differences, officials say.
Obama's Trans-Pacific and Trans-Atlantic trade plans are the most ambitious U.S. free trade initiatives since the 2005 collapse of negotiations to create a 34-country Free Trade Area of the Americas.
Now, in the absence of any serious U.S. plan to create a free trade bloc of the Americas, Obama's new trade plans with
Conversely, the new U.S. trade initiatives may hurt members of the Mercosur trade bloc -
"If you already have free trade agreements with
In addition, Latin American countries that already have free trade agreements with
Currently, European firms face restrictions on shipping goods made with European parts duty-free from
They will find it harder to compete with countries that have free trade deals with
My opinion: Granted, it remains to be seen whether the Trans-Pacific and Trans-Atlantic free trade deals will be signed, and whether they will be as ambitious as Obama has painted them.
And, to be sure,
But I agree with most trade experts that if
With Latin American economies only accounting for 8 percent of the world economy, Latin nations will be fooling themselves if they think they can grow faster by trading only among themselves.
The world seems to be moving into a game of musical chairs in which you better find a place in one of the new trade mega blocs, or you will be left out of the game.
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