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The Free Trade Area of the Americas (FTAA, , ALCA, Portuguese: ''Área de Livre Comércio das Américas'', ALCA, French: Zone de libre-échange des Amériques, ZLEA) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the
Americas The Americas, sometimes collectively called America, are a landmass comprising the totality of North America and South America.''Webster's New World College Dictionary'', 2010 by Wiley Publishing, Inc., Cleveland, Ohio. When viewed as a sing ...
, excluding
Cuba Cuba, officially the Republic of Cuba, is an island country, comprising the island of Cuba (largest island), Isla de la Juventud, and List of islands of Cuba, 4,195 islands, islets and cays surrounding the main island. It is located where the ...
. 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.


History


Origins

Discussions about the Free Trade Area of the Americas began at the first Summit of the Americas in
Miami Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
on December 11, 1994. The FTAA came to public attention during the third summit, held in
Quebec City Quebec City is the capital city of the Provinces and territories of Canada, Canadian province of Quebec. As of July 2021, the city had a population of 549,459, and the Census Metropolitan Area (including surrounding communities) had a populati ...
in 2001, as the meeting was targeted by large anti-corporatization 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 ...
protests. The Miami negotiations in 2003 met similar protests, though not as large. In the last round of negotiations, trade ministers from 34 countries met in
Miami Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
, 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 (, TLCAN; , ALÉNA), referred to colloquially in the Anglosphere as NAFTA, ( ) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The ...
(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 headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
(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 products, 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.


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, 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 List of capitals in the United States, capital and List of municipalities in Georgia (U.S. state), most populous city in the U.S. state of Georgia (U.S. state), Georgia. It is the county seat, seat of Fulton County, Georg ...
,
Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
,
Galveston Galveston ( ) is a Gulf Coast of the United States, coastal resort town, resort city and port off the Southeast Texas coast on Galveston Island and Pelican Island (Texas), Pelican Island in the U.S. state of Texas. The community of , with a pop ...
,
Houston Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...
,
San Juan San Juan, Spanish for Saint John (disambiguation), Saint John, most commonly refers to: * San Juan, Puerto Rico * San Juan, Argentina * San Juan, Metro Manila, a highly urbanized city in the Philippines San Juan may also refer to: Places Arge ...
, and
Miami Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
in the United States;
Cancún Cancún is the most populous city in the Mexican state of Quintana Roo, located in southeast Mexico on the northeast coast of the Yucatán Peninsula. It is a significant tourist destination in Mexico and the seat of the municipality of Benito J ...
and
Puebla Puebla, officially the Free and Sovereign State of Puebla, is one of the 31 states that, along with Mexico City, comprise the Federal Entities of Mexico. It is divided into 217 municipalities and its capital is Puebla City. Part of east-centr ...
in Mexico;
Panama City Panama City, also known as Panama, is the capital and largest city of Panama. It has a total population of 1,086,990, with over 2,100,000 in its metropolitan area. The city is located at the Pacific Ocean, Pacific entrance of the Panama Canal, i ...
, Panama; and
Port of Spain Port of Spain ( ; Trinidadian and Tobagonian English, Trinidadian English: ''Port ah Spain'' ) is the capital and chief port of Trinidad and Tobago. With a municipal population of 49,867 (2017), an urban population of 81,142 and a transient dail ...
,
Trinidad and Tobago Trinidad and Tobago, officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean, comprising the main islands of Trinidad and Tobago, along with several List of islands of Trinidad and Tobago, smaller i ...
. The U.S. city of
Colorado Springs Colorado Springs is the most populous city in El Paso County, Colorado, United States, and its county seat. The city had a population of 478,961 at the 2020 census, a 15.02% increase since 2010. Colorado Springs is the second-most populous c ...
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 Argentine Sea, Atlantic Ocean, in Buenos Aires Province, Argentina. It is the seat of General Pueyrredón Partido, General Pueyrredón district. Mar del Plata is the second largest city in Buenos Aires ...
, 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 The world is the totality of entities, the whole of reality, or everything that exists. The nature of the world has been conceptualized differently in different fields. Some conceptions see the world as unique, while others talk of a "plu ...
. 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 planned further discussions at the 6th Summit of the Americas in Cartagena, Colombia in 2012, but these discussions did not take place. As of 2022, U.S. trade policy reflected a withdrawal from a reliance on trade agreements, with a preference for smaller bilateral deals.


Planned 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, Bolivarian Revolution, revolutionary, and Officer (armed forces), military officer who served as the 52nd president of Venezuela from 1999 until De ...
, who has described it as an "
annexation Annexation, in international law, is the forcible acquisition and assertion of legal title over one state's territory by another state, usually following military occupation of the territory. In current international law, it is generally held t ...
plan" and a "tool of
imperialism Imperialism is the maintaining and extending of Power (international relations), power over foreign nations, particularly through expansionism, employing both hard power (military and economic power) and soft power (diplomatic power and cultura ...
" for the exploitation of South 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 Scottish people, Scots united in the ninth century as the Kingdom of Alba, until it developed ...
(''Alianza Bolivariana para las Américas'', ALBA) which emphasizes energy and infrastructure agreements among underdeveloped American nations.
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 come ...
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 Mononym, mononymously as Lula, is a Brazilian politician, trade unionist and former metalworker who has served as the 39th president of Brazil since 2023. A mem ...
, and Argentina,
Néstor Kirchner Néstor Carlos Kirchner Ostoić (; 25 February 195027 October 2010) was an Argentine lawyer and politician who served as the president of Argentina from 2003 to 2007. A member of the Justicialist Party, he previously served as Governor of Sa ...
, 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, subvention or government incentive is a type of government expenditure for individuals and households, as well as businesses with the aim of stabilizing the economy. It ensures that individuals and households are viable by having acce ...
, 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 sufficiency of disclosure, enabling discl ...
s and
copyright A copyright is a type of intellectual property that gives its owner the exclusive legal 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, ...
s. Critics claim that if the measures proposed by the United States were implemented and applied this would reduce scientific research in underdeveloped countries of the Americas. On the Council of Canadians web site, Maude 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 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 ...
held in
Quebec City Quebec City is the capital city of the Provinces and territories of Canada, Canadian province of Quebec. As of July 2021, the city had a population of 549,459, and the Census Metropolitan Area (including surrounding communities) had a populati ...
, 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 (), was a bilateral trade agreement reached by negotiators for Canada and the United States on ...
(1988; superseded by the NAFTA) * Canada, Mexico and United States:
North American Free Trade Agreement The North American Free Trade Agreement (, TLCAN; , ALÉNA), referred to colloquially in the Anglosphere as NAFTA, ( ) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The ...
(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)Each signatory has a different name for the agreement—in the United States, it is called the United States–Mexico–Canada Agreement (USMCA) ...
(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 The Pacific Alliance () is a Latin American trade bloc, formed by Chile, Colombia, Mexico and Peru, which all border the Pacific Ocean. The alliance was formed with the express purpose of improving regional integration and moving toward complet ...
(2012) * Chile–United States Free Trade Agreement (2004) * Peru–United States Trade Promotion Agreement (2007) *
United States–Colombia Free Trade Agreement The United States-Colombia Trade Promotion Agreement (CTPA) (Spanish language, Spanish: ''Tratado de Libre Comercio entre Colombia y Estados Unidos'' or ''TLC'') is a bilateral free trade agreement between the United States and Colombia. Sometime ...
(2011) * Panama–United States Trade Promotion Agreement (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 * Costa Rica – Mexico * Costa Rica – CARICOM * Mexico – Nicaragua * Mexico – Uruguay * Argentina, Bolivia, Brazil, Paraguay and Uruguay –
Mercosur The Southern Common Market (commonly known by abbreviation ''Mercosur'' in Spanish and ''Mercosul'' in Portuguese) is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full me ...
(1991) * Bolivia, Colombia, Ecuador and Peru –
Andean Community The Andean Community (, CAN) is a free trade area with the objective of creating a customs union comprising the South American countries (Andean states) of Bolivia, Colombia, Ecuador, and Peru. The trade bloc was called the Andean Pact until 1 ...
(1969)


Proposed agreements

; Active negotiations * Canada-CARICOM: * Canada-Central America (CA4TA – Guatemala, El Salvador, Nicaragua, Honduras) * Canada-Mexico-Peru-Chile mong other Pacific nations
Trans-Pacific Partnership The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement (TPPA), was a proposed trade agreement between 12 Pacific Rim countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietn ...
; Negotiations on hold * CARICOM-
Mercosur The Southern Common Market (commonly known by abbreviation ''Mercosur'' in Spanish and ''Mercosul'' in Portuguese) is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full me ...
: * 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, the city where it was agreed upon), also called Plan Mexico (in reference to Plan Colombia), was a security cooperation agreement among the United States, the government of Mexico, and the countries o ...
) * United States-CARICOM-Dominican Republic ( Partnership for Prosperity and Security in the Caribbean


See also

* Rules of origin *
Market access In international trade, market access refers to 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 condition ...
* Free-trade area *
Tariffs A tariff or import tax is a duty imposed by a national government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods or raw materials and is ...
* Miami model *
Pacific Alliance The Pacific Alliance () is a Latin American trade bloc, formed by Chile, Colombia, Mexico and Peru, which all border the Pacific Ocean. The alliance was formed with the express purpose of improving regional integration and moving toward complet ...
* Protection of Broadcasts and Broadcasting Organizations Treaty * Transatlantic Free Trade Area (TAFTA) *
Community of Latin American and Caribbean States The Community of Latin American and Caribbean States (CELAC) is a bloc of Latin American and Caribbean states, consisting of 33 countries, and has five official working languages. It is seen as an alternative to the Organization of American Stat ...
*
Union of South American Nations The Union of South American Nations (USAN), sometimes also referred to as the South American Union, abbreviated in Spanish as UNASUR and in Portuguese as UNASUL, is an intergovernmental regional organization. It was set up by Hugo Chavez to ...


External links


The Free Trade Area of the Americas (FTAA) process
official home page (2010 archive)


References

{{DEFAULTSORT:Free Trade Area Of The Americas FTAA 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 2000s in North America 2000s in Central America 2000s in South America History of the Americas Economic history of North America Economic history of South America