Western Hemisphere Trade Developments (CRS Report for Congress)
| Release Date |
June 24, 2002 |
| Report Number |
96-541 |
| Authors |
Raymond J. Ahearn, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
The countries of the Western Hemisphere constitute the largest regional market for U.S. exports
and
the second largest regional market for U.S. foreign direct investments. The growing importance of
this region to U.S. economic interests has been complemented by the growth of sub-regional
integration initiatives such as the North American Free Trade Agreement (NAFTA), Mercosur, the
Andean Community, the Central American Common Market, and Caribbean Community. These
groupings have not only established free trade areas and in some cases customs unions among
partner countries, but are also expanding trade and investment ties with other countries and regions
in the hemisphere, as well as more tentatively with the European Union. Concurrent with the
deepening and expansion of these sub-regional groupings have been efforts to create a Free Trade
Area of the Americas (FTAA). While FTAA negotiations formally commenced in September 1998,
the deadline for completion is not until 2005. If the FTAA negotiations were to lose momentum,
hemispheric integration could come to be dominated by the proliferation of sub-regional groupings.
This development, in turn, could have varying impacts on U.S. interests.
