The Americas
Hemisphere-Wide Agreement
On December 11, 1994, at the Summit of the Americas held in Miami, leaders of the 34 Western Hemisphere nations (excluding Cuba) agreed to establish the world's largest free trade bloc. A Free Trade Area of the Americas (FTAA) would unite the economies of the Americas into a single free trade area and progressively eliminate barriers to trade and investment.
The FTAA is still under negotiation, but is no longer the agreement originally envisioned in 1994. The new framework agreed to at a Ministerial meeting in 2003 called for the creation of a "common set of rights and obligations" applicable to all FTAA nations, while also permitting countries to pursue additional commitments through multilateral agreements under the umbrella of the FTAA. Following the fourth Summit of the Americas in November 2005, which was attended by President George Bush and other leaders of the region, Assistant Secretary of State for Western Hemisphere Affairs, Thomas Shannon, commented, " While 29 of the 34 regional democracies are prepared to move forward immediately toward the creation of an FTAA, Brazil, Argentina, Uruguay, Paraguay, and Venezuela are not." Talks are currently on hold.
The Free Trade Area of the Americas (FTAA) will be a nearly $21 trillion economic area with over 955 million consumers.
U.S.-Chile Free Trade Agreement
U.S.-Central American Free Trade Agreement
U.S. -Colombia Free Trade Agreement
Latin American Trade Coalition
NAFTA
U.S. -Panama Free Trade Agreement
U.S.-Peru Free Trade Agreement
Other Trade Agreements
The Americas are well developed as markets for regional trade and investment. The United States has signed and implemented multiple Free Trade Agreements with Latin American nations, and is currently negotiating with others, including Colombia and Panama.
The Common Market of the Southern Cone (MERCOSUR) was established in 1991 to encourage economic cooperation among the countries of South America. Products put together in the MERCOSUR can circulate without tariffs if no more than 40 percent of the export value of the final good is made of materials originating in a fellow MERCOSUR country. The organization was originally made up of Brazil, Argentina, Uruguay, and Paraguay, with Chile and Bolivia as associate members. Venezuela became a full member in 2006. Other associate members now include Mexico, Peru, Colombia and Ecuador. The MERCOSUR is also negotiating agreements with India and more than 30 other nations.
Mexican trade policy is among the most open in the world, with 43 total Free Trade Agreements including those with the United States, Canada, the EU, and Israel. Mexico's emphasis on foreign trade has made it one of the world's top 20 importers and exporters. The United States remains Mexico's principal trading partner and investor, with the European Union and Japan following in second and third place. Mexico is the only country besides Israel which has Free Trade Agreements with the two largest markets in the world - Europe and North America.