Free Trade Area of the Americas
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The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate or reduce the
trade barriers Trade barriers are government-induced restrictions on international trade. According to the theory of comparative advantage, trade barriers are detrimental to the world economy and decrease overall economic efficiency. Most trade barriers work ...
among all countries in the
Americas The Americas, which are sometimes collectively called America, are a landmass comprising the totality of North America, North and South America. The Americas make up most of the land in Earth's Western Hemisphere and comprise the New World. ...
, excluding
Cuba Cuba ( , ), officially the Republic of Cuba ( es, República de Cuba, links=no ), is an island country comprising the island of Cuba, as well as Isla de la Juventud and several minor archipelagos. Cuba is located where the northern Caribb ...
. Negotiations to establish the FTAA ended in failure, however, with all parties unable to reach an agreement by the 2005 deadline they had set for themselves. Still, contemporary discourses have not been invalidated – re-newed talks are anticipated .


History

In the last round of negotiations, trade ministers from 34 countries met in
Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
, Florida, in the United States, in November 2003 to discuss the proposal. The proposed agreement was an extension of the
North American Free Trade Agreement The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that crea ...
(NAFTA) between Canada, Mexico, and the United States. Discussions have faltered over similar points as the
Doha Development Round The Doha Development Round or Doha Development Agenda (DDA) is the trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001 under then director-general Mike Moore. Its objective was to lower trade barriers ...
of
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...
(WTO) talks; developed nations sought expanded trade in services and increased
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...
rights, while less developed nations sought an end to
agricultural subsidies An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the ...
and free trade in agricultural goods. Similar to the WTO talks, Brazil took a leadership role among the less developed nations, while the United States took a similar role for the developed nations.


Origins

Free Trade Area of the Americas began with the
Summit of the Americas The Summit of the Americas (SOA) is an international summit meeting that brings together the leaders of countries in the Organization of American States (OAS). Cuba was expelled from the OAS under pressure from the United States after the Cuban ...
in Miami, Florida, on December 11, 1994, but the FTAA came to public attention during the Quebec City Summit of the Americas, held in Canada in 2001, a meeting targeted by massive
anti-corporatization Anti-corporate activism refers to the idea of activism that is directed against the private sector, and specifically against larger corporations. It stems from the idea that the activities and impacts of big business are detrimental to the pub ...
and
anti-globalization The anti-globalization movement or counter-globalization movement, is a social movement critical of economic globalization. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist m ...
protests. The Miami negotiations in 2003 met similar protests, though not as large.


Disagreements

In previous negotiations, the United States had pushed for a single comprehensive agreement to reduce trade barriers for goods, while increasing intellectual property protection. Specific intellectual property protections could include
Digital Millennium Copyright Act The Digital Millennium Copyright Act (DMCA) is a 1998 United States copyright law that implements two 1996 treaties of the World Intellectual Property Organization (WIPO). It criminalizes production and dissemination of technology, devices, or ...
style copyright protections similar to the U.S.-Australia Free Trade Agreement. Another protection would likely have restricted the importation or cross importation of pharmaceuticals, similar to the proposed agreement between the United States and Canada. Brazil posed a three-track approach that called for a series of bilateral agreements to reduce specific tariffs on goods, a hemispheric pact on
rules of origin Rules of origin are the rules to attribute a country of origin to a product in order to determine its "economic nationality". The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tar ...
, and a dispute resolution process Brazil proposed to omit the more controversial issues from the FTA, leaving them to the WTO. The location of the FTA Secretariat was to have been determined in 2005. The contending cities were:
Atlanta Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,7 ...
,
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...
,
Galveston Galveston ( ) is a coastal resort city and port off the Southeast Texas coast on Galveston Island and Pelican Island in the U.S. state of Texas. The community of , with a population of 47,743 in 2010, is the county seat of surrounding Ga ...
,
Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 ...
,
San Juan San Juan, Spanish for Saint John, may refer to: Places Argentina * San Juan Province, Argentina * San Juan, Argentina, the capital of that province * San Juan, Salta, a village in Iruya, Salta Province * San Juan (Buenos Aires Underground), ...
, and
Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
in the United States;
Cancún Cancún ( ), often Cancun in English (without the accent; or ) is a city in southeast Mexico on the northeast coast of the Yucatán Peninsula in the Mexican state of Quintana Roo. It is a significant tourist destination in Mexico and the seat ...
and
Puebla Puebla ( en, colony, settlement), officially Free and Sovereign State of Puebla ( es, Estado Libre y Soberano de Puebla), is one of the 32 states which comprise the Federal Entities of Mexico. It is divided into 217 municipalities and its cap ...
in Mexico;
Panama City Panama City ( es, Ciudad de Panamá, links=no; ), also known as Panama (or Panamá in Spanish), is the capital and largest city of Panama. It has an urban population of 880,691, with over 1.5 million in its metropolitan area. The city is loca ...
, Panama; and
Port of Spain Port of Spain ( Spanish: ''Puerto España''), officially the City of Port of Spain (also stylized Port-of-Spain), is the capital of Trinidad and Tobago and the third largest municipality, after Chaguanas and San Fernando. The city has a muni ...
,
Trinidad and Tobago Trinidad and Tobago (, ), officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean. Consisting of the main islands Trinidad and Tobago, and numerous much smaller islands, it is situated south of ...
. The U.S. city of
Colorado Springs Colorado Springs is a home rule municipality in, and the county seat of, El Paso County, Colorado, United States. It is the largest city in El Paso County, with a population of 478,961 at the 2020 United States Census, a 15.02% increase since ...
also submitted its candidacy in the early days but subsequently withdrew. Miami, Panama City and Puebla served successively an interim secretariat headquarters during the negotiation process. The last summit was held at
Mar del Plata Mar del Plata is a city on the coast of the Atlantic Ocean, in Buenos Aires Province, Argentina. It is the seat of General Pueyrredón district. Mar del Plata is the second largest city in Buenos Aires Province. The name "Mar del Plata" is a sh ...
, Argentina, in November 2005, but no agreement on FTA was reached. Of the 39 countries present at the negotiations, 20 pledged to meet again in 2006 to resume negotiations, but no meeting took place. The failure of the Mar del Plata summit to establish a comprehensive FTA agenda augured poorly.


Current status

The FTAA missed the targeted deadline of 2005, which followed the stalling of useful negotiations of the World Trade Organization Ministerial Conference of 2005. Over the next few years, some governments, most notably the United States, not wanting to lose any chance of hemispheric trade expansion moved in the direction of establishing a series of bilateral trade deals. The leaders however, planned further discussions at the 6th Summit of the Americas in Cartagena, Colombia in 2012, although these discussions did not take place.


Membership

The following countries were planned to be part of the Free Trade Area of the Americas: * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *


Support and opposition

A vocal critic of the FTAA was Venezuelan president
Hugo Chávez Hugo Rafael Chávez Frías (; 28 July 1954 – 5 March 2013) was a Venezuelan politician who was president of Venezuela from 1999 until his death in 2013, except for a brief period in 2002. Chávez was also leader of the Fifth Republ ...
, who has described it as an "
annexation Annexation (Latin ''ad'', to, and ''nexus'', joining), in international law, is the forcible acquisition of one state's territory by another state, usually following military occupation of the territory. It is generally held to be an illegal act ...
plan" and a "tool of
imperialism Imperialism is the state policy, practice, or advocacy of extending power and dominion, especially by direct territorial acquisition or by gaining political and economic control of other areas, often through employing hard power (economic powe ...
" for the exploitation of Latin America. As a counterproposal to this initiative, Chávez promoted the
Bolivarian Alliance for the Americas ''Alba'' ( , ) is the Scottish Gaelic name for Scotland. It is also, in English language historiography, used to refer to the polity of Picts and Scots united in the ninth century as the Kingdom of Alba, until it developed into the Kin ...
(''Alianza Bolivariana para las Américas'', ALBA) which emphasizes energy and infrastructure agreements.
Evo Morales Juan Evo Morales Ayma (; born 26 October 1959) is a Bolivian politician, trade union organizer, and former cocalero activist who served as the 65th president of Bolivia from 2006 to 2019. Widely regarded as the country's first president to c ...
of Bolivia has referred to the U.S.-backed Free Trade Area of the Americas, as "an agreement to legalize the colonization of the Americas". On the other hand, the then presidents of Brazil,
Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva (; born Luiz Inácio da Silva; 27 October 1945), known mononymously as Lula, is a Brazilian politician, trade unionist, and former metalworker who is the president-elect of Brazil. A member of the Workers' Party ...
, and Argentina,
Néstor Kirchner Néstor Carlos Kirchner (; 25 February 195027 October 2010) was an Argentine lawyer and politician who served as the President of Argentina from 2003 to 2007, Governor of Santa Cruz Province from 1991 to 2003, Secretary General of UNASUR and ...
, have stated that they do not oppose the FTAA but they do demand that the agreement provide for the elimination of U.S. agriculture
subsidies A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...
, the provision of effective access to foreign markets and further consideration towards the needs and sensibilities of its members. One of the most contentious issues of the treaty proposed by the United States is with concerns to
patent A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
s and
copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
s. Critics claim that if the measures proposed by the United States were implemented and applied this would reduce scientific research in Latin America. On the Council of Canadians web site, Barlow wrote: "This agreement sets enforceable global rules on patents, copyrights and trademark. It has gone far beyond its initial scope of protecting original inventions or cultural products and now permits the practice of patenting plants and animal forms as well as seeds. It promotes the private rights of corporations over local communities and their genetic heritage and traditional medicines". On the weekend of April 20, 2001, the
3rd Summit of the Americas The 3rd Summit of the Americas was a summit held in Quebec City, Quebec, Canada, on April 20–22, 2001. This international meeting was a round of negotiations regarding a proposed Free Trade Area of the Americas. The talks are perhaps bette ...
was a
summit A summit is a point on a surface that is higher in elevation than all points immediately adjacent to it. The topographic terms acme, apex, peak (mountain peak), and zenith are synonymous. The term (mountain top) is generally used only for a m ...
held in
Quebec City Quebec City ( or ; french: Ville de Québec), officially Québec (), is the capital city of the Canadian province of Quebec. As of July 2021, the city had a population of 549,459, and the metropolitan area had a population of 839,311. It is t ...
, Canada. This international meeting was a round of negotiations regarding a proposed FTAA.


Agreements

There are currently 34 countries in the Western Hemisphere, stretching from Canada to Chile that still have the FTAA as a long-term goal. The Implementation of a full multilateral FTAA between all parties could be made possible by enlargement of existing agreements. At this point Agreements within the Area of the Americas include:


Previous agreements

* Canada:
Canada–United States Free Trade Agreement The Canada–United States Free Trade Agreement (CUSFTA), official name as the Free Trade Agreement between Canada and the United States of America (french: links=no, Accord de libre-échange entre le Canada et les États-Unis d'Amérique), wa ...
(1988; superseded by the NAFTA) * Canada, Mexico and United States:
North American Free Trade Agreement The North American Free Trade Agreement (NAFTA ; es, Tratado de Libre Comercio de América del Norte, TLCAN; french: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that crea ...
(1994; superseded by the USMCA) * Costa Rica- Dominican Republic (superseded by DR-CAFTA) * Costa Rica- Trinidad and Tobago (superseded by a Costa Rica – CARICOM FTA).


Current agreements

* Canada, Mexico and United States:
United States–Mexico–Canada Agreement The Agreement between the United States of America, the United Mexican States, and Canada (USMCA) Commonly known as the United States–Mexico–Canada Agreement (USMCA) in the United States and the Canada–United States–Mexico Agreement (CU ...
(USMCA; 2020) * Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic and United States: Dominican Republic–Central America Free Trade Agreement (DR-CAFTA; 2008) * Chile, Colombia, Mexico and Peru: Pacific Alliance (2012) * Chile–United States Free Trade Agreement (2004) *
Peru–United States Trade Promotion Agreement The United States–Peru Trade Promotion Agreement ( es, Acuerdo de Promoción Comercial Perú – Estados Unidos o Tratado de Libre Comercio Perú – Estados Unidos) is a bilateral free trade agreement, whose objectives are eliminating obstacles t ...
(2007) *
United States–Colombia Free Trade Agreement The United States-Colombia Trade Promotion Agreement (CTPA) ( Spanish: ''Tratado de Libre Comercio entre Colombia y Estados Unidos'' or ''TLC'') is a bilateral free trade agreement between the United States and Colombia. Sometimes called the Colombi ...
(2011) *
Panama–United States Trade Promotion Agreement The Panama–United States Trade Promotion Agreement (Spanish: ''Tratado de Libre Comercio entre Panamá y Estados Unidos'' or ''TLC'') is a bilateral free trade agreement between Panama and the United States that has been in effect since October 20 ...
(2011) * Canada – Chile * Canada – Colombia * Canada – Costa Rica * Canada – Honduras * Canada – Panama * Canada – Peru * Chile – Mexico * Chile – Costa Rica * Colombia – CARICOM * Colombia – Costa Rica * Colombia –
Northern Triangle The Northern Triangle of Central America (NTCA) is a term used in the United States to refer collectively to the three Central American countries of Guatemala, Honduras, and El Salvador. The term is used with respect to the countries' economic ...
* Costa Rica – Mexico * Costa Rica – CARICOM * Mexico – Nicaragua * Mexico – Uruguay * Argentina, Brazil, Paraguay, Uruguay and Venezuela –
Mercosur The Southern Common Market, commonly known by Spanish abbreviation Mercosur, and Portuguese Mercosul, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Arge ...
(1991) * Bolivia, Colombia, Ecuador and Peru –
Andean Community The Andean Community ( es, Comunidad Andina, CAN) is a free trade area with the objective of creating a customs union comprising the South American countries of Bolivia, Colombia, Ecuador, and Peru. The trade bloc was called the Andean Pa ...
(1969)


Proposed agreements

; Active negotiations * Canada-CARICOM: * Canada-Central America (CA4TA – Guatemala, El Salvador, Nicaragua, Honduras) * Canada-Mexico-Peru-Chile
mong other Pacific nations Mong may refer to: People *A proposed original name for the Hmong people, based on the main group, the Mong community *Bob Mong (), American journalist and academic administrator * Henry Mong (), American surgeon and Presbyterian missionary * Mon ...
Trans-Pacific Partnership The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement, was a highly contested proposed trade agreement between 12 Pacific Rim economies, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Pe ...
; Negotiations on hold * CARICOM-
Mercosur The Southern Common Market, commonly known by Spanish abbreviation Mercosur, and Portuguese Mercosul, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Arge ...
: * United States-Ecuador: U.S.-Ecuador Free Trade Agreement * CARICOM-North American Free Trade Agreement, first discussed in 1993–1994


Security pacts

* United States-Central America-Mexico (
Mérida Initiative The Mérida Initiative (named after Mérida (Yucatán), the city where it was agreed upon, also called Plan Mexico, in reference to Plan Colombia) is a security cooperation agreement among the United States, the government of Mexico and the countri ...
) * United States-CARICOM-Dominican Republic ( Partnership for Prosperity and Security in the Caribbean


See also

*
Rules of Origin Rules of origin are the rules to attribute a country of origin to a product in order to determine its "economic nationality". The need to establish rules of origin stems from the fact that the implementation of trade policy measures, such as tar ...
*
Market access In international trade, market access is a company's ability to enter a foreign market by selling its goods and services in another country. Market access is not the same as free trade, because market access is normally subject to conditions or re ...
*
Free-trade area A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...
*
Tariffs A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and po ...
* Miami model * Pacific Alliance * Protection of Broadcasts and Broadcasting Organizations Treaty *
Transatlantic Free Trade Area A Transatlantic Free Trade Agreement (TAFTA) is a proposal to create a free-trade agreement covering Europe and North America, on both sides of the Atlantic Ocean. Such proposals have been made since the 1990s. Between 2013 and about 2017 an agre ...
(TAFTA) *
Community of Latin American and Caribbean States A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, tow ...
*
Union of South American Nations The Union of South American Nations (USAN; es, links=no, Unión de Naciones Suramericanas, UNASUR; pt, links=no, União de Nações Sul-Americanas, UNASUL; nl, links=no, Unie van Zuid-Amerikaanse Naties, UZAN; French: ''Union des nations s ...


References


External links


The Free Trade Area of the Americas (FTAA) process – official home page

Comparing the official agreement and alternative visions


* ttps://web.archive.org/web/20080408141442/http://www.southernaffairs.org/2008_04_01_archive.html Chilean and Foreign Policy
Mit.edu

Harvard.edu


By Eric Farnsworth, Council of the Americas, December 2005
Whither the FTAA?
(November 10, 2005), Guyana Chronicle Newspaper

The Washington Times ''The Washington Times'' is an American conservative daily newspaper published in Washington, D.C., that covers general interest topics with a particular emphasis on national politics. Its broadsheet daily edition is distributed throughou ...
(washtimes.com AP)
Myths of the FTAA
FoodFirst.org Institute for Food and Development Policy
Why say no to FTAA
bilaterals.org

{{DEFAULTSORT:Free Trade Area Of The Americas
FTAA The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. Negotiations to establish the FTAA ended in failure, however, with all parties un ...
Foreign relations of Argentina Politics of the Americas Trade blocs United States federal trade legislation Proposed free trade agreements Free-trade areas Foreign trade of Argentina