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Intra regional Trade Agreements in LAC |
A number of Regional Trade Agreements(RTAs) exists in LAC. The important ones include:
MERCOSUR(Southern Cone Common Market)
Andean Pact(Andean Common Market)
CACM(Central American Common Market)
EAI(Enterprise for the Americas Initiative)
LAIA(Latin American Integration Association)
NAFTA(North American Free Trade Agreement)
Set up in 1991, members are Argentina, Brazil, Paraguay & Uruguay.
Venezuela has also become a full member in July 2006.
Objective is to form a common market through co-ordinating fiscal and exchange rate policy, and accelerating economic development
Intra-regional trade is being gradually liberalized
Tariffs on 90% of intra-regional trade has been removed
Brazil & Argentina have eliminated intra-regional tariffs, Paraguay and Uruguay are expected to follow.
Common external tariff(CET) ranging from 0-20%
India has signed a PTA with MERCOSUR.
Set up in 1969, revived in 1990
Members are Bolivia, Colombia, Ecuador, Peru and Venezuela
Objective is to form a common market through harmonisation of social and economic policies, and joint programmes
By 1993, tariffs had been eliminated in almost all products
CET ranges between 5-20%, except for Peru
For Peru, CET is a flat rate of 15%
Set up in 1961, revived in 1990
Members are Costa Rica, El Salvador, Guatemala, Honduras & Nicaragua
Objective is to form a custom union
Agriculture goods are excluded from trade liberalisation; a common price band for key agro-products is in place
Many restrictions to intra-regional trade have been lifted
CET ranges between 5-20%
Set up in 1973
Members comprise 13 Caribbean countries(Antigua & Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Monteserret, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago)
Objective is to form a common market through harmonisation of customs procedures
Most intra-regional trade has been liberalised
First phase of reducing CET to a range of 0-35 has been implemented starting in 1993
Set up in 1980, formerly known as LAFTA.
Members comprise 12 countries (Argentina, Bolivia, Brazil, Cuba, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela)
Objective is to form a common market through extending regional tariff preferences, and ‘partial scope agreements’ among some of the members
A large number of bilateral trade agreements have been signed among the members to liberalize trade in the LAIA group.
Set up in 1990
Members comprise CARICOM members, MERCOSUR members, Andean Pact members, and 10 countries including the US
Objective is very ambitious – to achieve a free trade zone for the entire Western Hemisphere
To reinforce market-oriented reforms in LA by expanding trade investment, and strengthening environment policies
The US has signed framework agreements with 31 countries
Framework agreements establish the agenda for bilateral negotiations as well as institutional mechanisms
Set up in 1994
Members comprise the US, Canada and Mexico
Objective is to form a free trade area in goods and services, government procurement, and intellectual property rights, and liberalisation of investment flows and professional services
Canadian Agro and Mexican petro-products are partially excluded
Effective January 1, 1994, phased elimination of tariffs and non-tariff barriers has started
Objective is to remove all trade barriers over a maximum of 15 year
