Which of the following Is the Aim of the Central America Free Trade Agreement

Free trade negotiations between the United States and the five Central American countries began in 2002. The Dominican Republic participated in the discussions in 2003. CAFTA-DR was signed by all countries on 5 August 2004. The agreement was approved by the U.S. Congress in July 2005 and approved by Pres. George W. Bush. In 2007, all signatories, with the exception of Costa Rica, announced the agreement. Support lagged behind in Costa Rica due to strong opposition from a wide range of civil society organizations and trade unions. Costa Rican voters approved the agreement in a national referendum in 2007; it entered into force in January 2009.

In general, CAFTA-DR divided Central Americans into two camps: peasants, workers, and indigenous groups strongly opposed it, while businesses and governments believed it would attract more foreign investment and promote economic growth. Over the past decade, there has been an increase in these trading blocs with more than a hundred agreements and more under discussion. A trading bloc is essentially a free trade area or a quasi-free trade area formed by one or more fiscal, tariff and trade agreements between two or more countries. Some trading blocs have led to agreements that have been more substantial than others in the creation of economic cooperation. Of course, there are advantages and disadvantages to the creation of regional agreements. The European economy is facing a deeper recession and a slower recovery than the United States or other parts of the world. While the EU economy, worth $18.4 trillion, accounts for 30% of the global economy, its poor prospects for the US, Asia and other regions are expected to recover.26 Repairing the EU banking system is particularly challenging, with sixteen of the twenty-seven countries sharing the euro currency and a central bank, but banking regulation remains largely under the control of national governments.27 From the outset, critics of NAFTA feared that the deal would result in the relocation of U.S. jobs to Mexico despite the complementarity of the NAALC.

NAFTA, for example, has affected thousands of American autoworkers in this way. Many companies have moved production to Mexico and other countries with lower labor costs. However, NAFTA may not have been the reason for these measures. President Donald Trump`s USMCA should address these concerns. The White House estimates that the USMCA will create 600,000 jobs and add $235 billion to the economy. 19. Andzej Arendarski, Ludovit Cernak, Vladimir Dlouhy and Bela Kadar, Central European Free Trade Agreement, 21 December 1992, accessed 30 April 2011, www.worldtradelaw.net/fta/agreements/cefta.pdf. Given the global economic recession of 2008 and the difficult impact on the EU, NAFTA is unlikely to move from free trade area status to something more comprehensive (e.g. B, the economic union of the EU). In the introductory case study, you can read about the pressure on the EU and the resistance of each of the governments in Europe to make political adjustments to cope with the recession. The United States, as the largest member of NAFTA, will not give up its rights to independently determine its economic and trade policies.

Observers point out that there may be a possibility for NAFTA to expand to other Latin American countries.5 Chile was originally scheduled to be part of NAFTA in 1994, but President Clinton has been hampered by Congress in his ability to formalize this decision.6 Since then, Canada, Mexico, and the United States have each negotiated bilateral trade agreements with Chile. but it is still sometimes mentioned that Chile may one day join NAFTA.7 Canadian and American consumers have benefited from cheaper Mexican agricultural products. Similarly, Canadian and U.S. companies have attempted to enter Mexico`s growing domestic market. Many Canadian and U.S. companies chose to locate their manufacturing facilities in Mexico rather than Asia, which was geographically distant from their North American bases. In Guatemala, mass protests were violently repressed by the government, and in Costa Rica there were strikes against the trade deal. In addition, many Catholic bishops in Central America and the United States rejected the treaty, as did many social movements in the region. (Comparative Politics of Latin America (page 469), Daniel C. Hellinger) The European Union (EU) is the most integrated form of economic cooperation. As you learned in the introductory case study, the EU began in 1950 to end the frequent wars between neighbouring countries in Europe.

The six founding countries were France, West Germany, Italy and the Benelux countries (Belgium, Luxembourg and the Netherlands), all of which signed a contract to manage their coal and steel industries under joint management. Emphasis was placed on the development of the coal and steel industry for peaceful purposes. The EU and the Central America region concluded a new Association Agreement on 29 June 2012. The Association Agreement is based on three complementary and equally important pillars, namely political dialogue, cooperation and trade, which are mutually reinforcing and have their impact. They are the right tools to support economic growth, democracy and political stability in Central America. The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the United States, Canada and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, entered into force on 1 January 1994. Many tariffs, notably on agriculture, textiles and automobiles, were phased out between 1 January 1994 and 1 January 2008.

In January 2002, U.S. President George W. Bush declared CAFTA a priority and was given the power to negotiate it by Congress. Negotiations began in January 2003 and an agreement was reached with El Salvador, Guatemala, Honduras and Nicaragua on 17 December 2003 and with Costa Rica on 25 January 2004. In the same month, DCFTA accession negotiations began with the Dominican Republic. Along with the Dominican Republic, the trade group`s largest economy, the region covered by THE CAFTA-DR is the second largest Latin American export market for the United States. . . .