Latin American and Caribbean nations with a GDP of $227.4 billion in 1994, while in 1994 Paraguay and Uruguay have a combined GDP of $22.5 billion and are the thirteenth and seventh biggest economies in those regions (US Trade Rep). The EU has also agreed upon having negotiations with Chile on creating a reciprocal agreement with them. Chile is the fifth largest economy among the US' major export markets in the Latin America and the Caribbean region, with a GDP of $49.3 billion in 1994. Chile also posted 6 percent growth in 1996 (US Trade Rep). DiscussionThe heads of 34 American and Caribbean countries, all except Cuba, met in Miami where they agreed to aim for a Free-Trade Agreement of the Americas (FTAA) by 2005. This agreement would consolidate the already existing agreements of NAFTA, MERCOSUR, CARICOM (Caribbean Common Market), and the Andean Region (Bolivia, Colombia, Ecuador, Peru and Venezuela). It would be a great failure for the US not to take the lead in negotiating this trade pact. Canada and Brazil have already stated their proposals for an FTAA. It is time for the US to do the same. With the US as the most important player in the negotiations, opponents of the expansion of NAFTA such as Dick Gephardt can play an active role in establishing firm environmental and labor laws within the region. With the opponents out of the way it is possible to imagine a prosperous trade union with powerful markets such as Brazil and Chile. Brazil alone has already reduced its tariffs on US goods to 13.6 percent in 1996, from 45 percent in 1986 (US Trade Rep.). During this time US exports to Brazil have tripled. Brazil, Chile, and Argentina are considered by Corporate Locations annual investment survey as the 2nd, 3rd, and 4th most attractive regions in the world for investment (H.I.R., Fall 97, pg. 21). By joining an FTAA and in turn reducing trade restrictions we can expect even higher levels of growth in the future.The expa...
