Trade Integration in the Americas

Since the 1990s, the countries of Latin America and the Caribbean have been a focus of United States trade policy, as demonstrated by the passage of the North American Free Trade Agreement (NAFTA), the U.S.-Chile Free Trade Agreement, and, more recently, the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).The Bush Administration has made trade agreements important elements of U.S. trade policy.The United States currently is in the process of completing trade negotiations with Andean countries for a free trade agreement (FTA) and on reactivating talks for a U.S.-Panama FTA and a Free Trade Area of the Americas (FTAA).The FTAA is an on-going regional trade initiative that was first discussed in 1994 and formally started in 1998.The last FTAA trade ministerial meeting was held in Miami in November 2003, but the talks are currently stalled.The efforts of the United States in regional trade integration in the Americas are significant for Congress because U.S. entry into any free trade agreement may only be done with the legislative approval of the Congress.U.S. supporters of trade integration in the Americas believe it helps U.S. economic and political interests in several ways.Proponents believe that the movement towards trade integration of the Americas is beneficial for U.S. prosperity, and also serves to strengthen democratic regimes and support U.S. values and security.Forming closer economic relations with countries in the region is seen by some as a means to improve cooperation on other issues such as the environment and anti-drug efforts.U.S. opponents of trade integration proposals are mainly concerned that hemispheric free trade would lead to a loss of jobs in the United States through increased import competition or as a result of U.S. companies shifting production to lower-wage countries with weak