Brazil against the FTAA

The idea of the Free Trade Area of the Americas causes numerous discussions in all American countries, but some of them are particularly skeptical of the FTAA. One of them is Brazil.

Brazil is the country with the most developed economy in South America, and the seventh economy in the world at the same time. It is also the largest country in Latin America in terms of territory and population. In 1993, Brazil announced the creation of Area de Libre Comercio de América del Sur. This was to be a group that would be a counterpole to the Free Trade Agreement signed between the United States, Canada and Mexico. Brazil's reluctance to the FTAA results from, among other things, the fact that the country is in favor of expanding cooperation in the framework of MERCOSUR (Mercado Común del Sur), so the economic organization uniting the countries of Latin America, established in 1991. According to proponents of this solution, integration within MERCOSUR would strengthen the Latin American countries and allowed to return to negotiations with the United States as a strong team that could get much greater benefits. Brazil does not close, therefore, on trade cooperation with the United States, but is looking for ways to do so on much better conditions than those it can count on at the moment.

In Brazil there are also supporters of the Free Trade Area of the Americas, who represent a number of arguments in favor of that agreement. They say that it may be very favorable for their country’s economy.