21. (back) Based on trade data from the U.S. International Trade Commission. In recent years, Mercosur countries have been working on several trade initiatives. Mercosur and the Andean Community of Nations (CAN) signed a Memorandum of Understanding in December 2004 to form an economic union similar to the European Union by 2019 (see section on the South American international community in this report). Mercosur has also advanced trade liberalisation with the EU. The 1995 Eu-Mercosur Interregional Framework Cooperation Agreement began preparations for negotiations on an interregional agreement that would include the liberalisation of trade in goods and services in accordance with WTO rules, as well as enhanced cooperation and political dialogue. Negotiations on the agreement were officially launched in June 1999. The last round of negotiations aimed at strengthening political, economic and trade relations between Mercosur and the EU took place in October 2004, with the next round to take place before the end of 2005. (46) After months of expiry at the ATPA, ATPDEA (Title XXXI of P.L. 107-210) entered into force on 6 August 2002.
ATPDEA has re-approved the atPA preference program and expanded trade preferences to include other products that have been excluded under the ATPA. ATPDEA also authorized the President to grant duty-free treatment to U.S. imports of certain garments if the items complied with national content rules. ATPDEA accounted for about half of all U.S. imports from the four countries in 2003. ATPDEA`s duty-free benefits expire on December 31, 2006. Trade preferences with Andean countries may not be renewed. A free trade agreement with the United States would guarantee these preferences and additional duty-free treatment. The first Summit of the South American Community was held in Brasilia on 30 September 2005.
The majority of heads of state from South American countries attended the summit. Despite Venezuelan President Hugo Chavez`s efforts to replace the proposed structure of the CSN with his own proposal, summit representatives decided to advance what their foreign ministers had already developed in preparatory meetings. They supported the idea of merging Mercosur and CAN to turn all of South America into a free trade area. One of the outcomes of the summit was to call on the secretariats of all existing integration mechanisms to prepare studies on the convergence of trade agreements among South American countries by mid-2006 at the latest. (61) 46. (back) For more information, see Mercosur in the “External Relations” section of the European Commission`s website europa.eu.int/comm/trade/issues/bilateral/regions/mercosur/index_en.htm. On the other hand, Brazil`s then presidents, Luiz Inácio Lula da Silva, and Argentina`s Néstor Kirchner, said they were not opposed to the FTAA, but demanded that the agreement provide for the abolition of U.S. agricultural subsidies, the provision of effective access to foreign markets, and a deeper examination of the needs and sensitivities of its members.
[9] The basic provisions of the TPL were set out in the Trade Act, 1974 (P.L. 93-618) for a limited period of time. These provisions have been regularly renewed, most recently under the Trade Act 2002. Under the TPA, Congress requires that if a trade agreement is reached within a certain time frame, it will review legislation to implement the trade agreement through expedited procedures that prohibit changes, limit debate, and set deadlines for congressional action. Under the 2002 Act, as amended, Congress approved the TPA for trade agreements entered into before July 1, 2005, but also approved an automatic two-year extension of the TPA to trade agreements concluded before July 1, 2007. TPA assures the president that agreements such as the U.S.-U.S. free trade agreements and Panama would be voted on in time in Congress as long as certain requirements, such as consultations with Congress, are met. Without the LTP, bills would be considered under normal legislative procedures and would be amendable. Shannon K. O`Neil, Senior Fellow of the CFR, discusses trade relations between Argentina and Brazil in foreign affairs. The Dominican Republic and Central America are smaller countries with a total population of $44 million and a total GDP of $86 billion.
Exports and imports to the region account for less than one per cent of the world total. All countries have had democratically elected presidents for some time, and some of them have recently undergone electoral transitions. For each of the countries, the United States is the dominant market as well as the main source of investment and foreign aid, including trade preferences under the Caribbean Basin Initiative (CBI) and support after devastating hurricanes. (27) The Mercosur countries held preliminary talks with Mexico on 20 May 2005 with a view to making Mexico an associate member of the trading bloc. Associate members enjoy preferential tariff treatment for their products, but are not required to assume Mercosur`s common external tariffs. (47) More than 300 free trade agreements are currently in force worldwide. They come in different shapes and sizes, but the common denominator is reduced rates. About 35 free trade agreements – a tenth in total – have been signed by countries in Latin America and the Caribbean. Proponents of free trade argue that by removing tariff and non-tariff barriers to trade, agreements allow countries to export more of the goods and services they produce most efficiently and import those for which other countries have a comparative advantage, thus benefiting from competitive prices. The bottom line is, at least theoretically, a win-win situation with more efficiency and mutual benefit. .
