UNDER
CONSTRUCTION!!!!!!!!!!!!!!!!!!!!!!!
In
geopolitics, regional integration has become vogue. The emergence
of the “common market” has shifted the processes of world
trade. The year 1991 witnessed the marriage of Brazil, Argentina,
Uruguay and Paraguay to form South America 's MERCOSUR. The
partnership of the European Union, in 1992, conceived a massive
new global market, and with it, a massive new global competitor.
Japan, Australia, India and China now are reconciling their
differences forging the Asia-Pacific Economic Cooperation
Forum (APEC). In effect, pools of regional trading partners
have collected, and continue to conglomerate, around the world
in order to compete with the world's largest market—the United
States.
As
a part of its response, the US is broadening its trade and
investment capacity. The North
American Free Trade Agreement
(NAFTA), the Central
American Free Trade Agreement (CAFTA), the
more recent Andean
Free Trade Agreement
(AFTA) and finally the Free
Trade of the Americas Agreement (FTAA) are
direct responses to integrated global competition. The strategy:
Annex Canada and Central and South America to expand the US
's trade zone and lift barriers to investment in order for
US resource expansion. Like Legos™,
first construct and lay down the infrastructure—the Plan
Pueba-Panama (PPP) and the Integration
of Infrastructure in the Region of South America
(IIRSA), and then codify trade and investment treaties—NAFTA,
DR-CAFTA, AFTA and FTAA, slowly interlocking the region on
the whole.
Such
international free trade agreements are engineered by US dominated
institutions, such as the World Bank, the Inter-American Development
Bank, the International Monetary Fund, along with other International
Financial Institutions and Corporations. These bodies, with
policies like Structural Adjustment Programs (SAPs), advocate
to privatize public entities, exploit natural resources, remove
social welfare programs, reduce environmental regulation,
diminish worker's rights, privatize land and exclude indigenous
rights, in order to inspire financial flows—foreign direct
investment (FDI), portfolio investment and debt flows. In
summary, rich counties change (or liberate) fiscal policy
in poor countries to allow higher capital fluidity; poor countries
then borrow money from rich countries to put in infrastructure—roads,
electricity, communications, ports, etc.; afterwards, transnational
corporations move companies to the poor countries and build
industries.
Despite
increased capital investment, the capital retained in “developing”
countries is miniscule compared to the capital amassed by
“developed” countries. In order to receive investment packages
from multilateral financial institutions, poor countries must
agree to Structural Adjustment Programs, which knock down
impediments to short-term investment and liberate restrictions
on venture capital. Afterwards, foreign investment speculators
can shift investment relatively easily from one market to
the next; venture capitalists are able to quickly liquefy
and invest elsewhere in the new global casino, leaving the
citizens of the poor country, rather than the foreign businesses,
to struggle to repay the swelling debt. Due to the high amount
of money owed to multilateral financial institutions, money
normally designated for social services in poor countries
is cut back to pay down the escalating debt. In most cases,
the investors (whom often live abroad in rich countries or
comprise of the local wealthy class) accrue massive profits,
scattering few scraps to the actual citizens of the countries,
thus widening the gap between the rich and the poor.
Free
trade advocates often point out the benefits of regional trade
in Europe; however, unlike the European Union, these American
trade agreements do not increase human rights and environmental
protections; instead they propose the opposite by ceding human
and environmental rights over to corporations and investors.
Here, there is no talk of relinquishing the borders to allow
worker mobility like in Europe; in fact, it is just the opposite,
limiting labor mobility by increasing border protection.
As
regions integrate, global tension rises. The Seattle, Miami,
Cancun protests represent civil society's frustrations with
injustices that accompany global trade and international investment
mechanisms. Between March of 2002 and 2004, Global Exchange
documented 25 civil protests against CAFTA and the PPP alone.
In 2002, over 10 million Brazilians voted against the FTAA.
In July 2004, San Salvador hosted the largest agglomeration
yet with over 700 of Central America's social organizations
in attendance. In November of 2004, over 300,000 people lined
the Chilean streets opposing Bush and the bilateral trade
agreement between Chile and the United States. The following
links detail the Legos™
of the Free Trade Agreement of the Americas:
North
American Free Trade Agreement (NAFTA)
Information on the enacted trade
treaty between the United States, Canada, and Mexico.
Dominican
Republic-Central American Free Trade Agreement (DR-CAFTA)
Design of the proposed
commercial pact between the United States, El Salvador, Guatemala,
Nicaragua, Honduras, Costa Rica and the Dominican Republic.
Andean
Free Trade Agreement (AFTA)
Detail on the signed trade pact
between the United States, Peru, Bolivia, and Columbia.
Free
Trade Area of the Americas Agreement (FTAA)
The structure of the 34 nation plan interconnecting
North, Central, and South America and the Caribbean (with
the exclusion of Cuba).
Plan
Puebla-Panama (PPP)
The series of industrial development
plans proposed from Mexico through Central America.
Integration
of Infrastructure in the Region of South America (IIRSA)
The sequence of infrastructure development
planned throughout South America .
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