Free Trade Agreements: Lessons From Latin America's Recent Past

Summary

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[...] the alleged benefits that come with free trade deals need to be juxtaposed with the far less glamorous realities being faced daily by the majority of Latin American countries that continue to lack the physical infrastructure, as well as strong democratic institutions, to guarantee that economic success will spill over to the region's most disadvantaged areas. Therefore, it is crucial that Latin American countries adequately prepare themselves before contracting such agreements by heavily investing in transportation and communication capabilities, expanding subsidies to rural areas to include local farmers, as well as establishing a safety net for those who fail to assimilate in the increasingly competitive market.

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Free Trade Agreements: Lessons From Latin America's Recent Past

Free Trade Agreements (FTAs) between the United States and several Latin American countries are increasingly being described in the media as the centerpiece of this western hemispheric relations. On December 4, 2007 the FTA between the U.S. and Peru was approved by the U.S. Senate by a vote of 77 to 18. This gave President Bush his first important victory on trade matters since the Democrats gained control of both houses of Congress a year ago. Susan Schwab, the United States Trade Representative (USTR), said that "With the strong votes by both chambers of Congress, we are sending a strong signal to the world that the United States is regaining its bipartisan footing on trade policy and is a reliable ally to countries that are building political and economic freed...

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