STUDIES OF THE AMERICAS
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1 STUDIES OF THE AMERICAS edited by Maxine Molyneux Institute for the Study of the Americas University of London School of Advanced Study Titles in this series are multidisciplinary studies of aspects of the societies of the hemisphere, particularly in the areas of politics, economics, history, anthropology, sociology, and the environment. The series covers a comparative perspective across the Americas, including Canada and the Caribbean as well as the United States and Latin America. Titles in this series published by Palgrave Macmillan: Cuba s Military : Revolutionary Soldiers during Counter-Revolutionary Times By Hal Klepak The Judicialization of Politics in Latin America Edited by Rachel Sieder, Line Schjolden, and Alan Angell Latin America: A New Interpretation By Laurence Whitehead Appropriation as Practice: Art and Identity in Argentina By Arnd Schneider America and Enlightenment Constitutionalism Edited by Gary L. McDowell and Johnathan O Neill Vargas and Brazil: New Perspectives Edited by Jens R. Hentschke When Was Latin America Modern? Edited by Nicola Miller and Stephen Hart Debating Cuban Exceptionalism Edited by Bert Hoffman and Laurence Whitehead Caribbean Land and Development Revisited Edited by Jean Besson and Janet Momsen Cultures of the Lusophone Black Atlantic Edited by Nancy Priscilla Naro, Roger Sansi-Roca, and David H. Treece Democratization, Development, and Legality: Chile, By Julio Faundez The Hispanic World and American Intellectual Life, By Iván Jaksic The Role of Mexico s Plural in Latin American Literary and Political Culture: From Tlatelolco to the Philanthropic Ogre By John King Faith and Impiety in Revolutionary Mexico Edited by Matthew Butler Reinventing Modernity in Latin America: Intellectuals Imagine the Future, By Nicola Miller The Republican Party and Immigration Politics: From Proposition 187 to George W. Bush By Andrew Wroe The Political Economy of Hemispheric Integration: Responding to Globalization in the Americas Edited by Diego Sánchez-Ancochea and Kenneth C. Shadlen
2 Ronald Reagan and the 1980s: Perceptions, Policies, Legacies Edited by Cheryl Hudson and Gareth Davies Wellbeing and Development in Peru: Local and Universal Views Confronted Edited by James Copestake The Federal Nation: Perspectives on American Federalism Edited by Iwan W. Morgan and Philip J. Davies Base Colonies in the Western Hemisphere, By Steven High Beyond Neoliberalism in Latin America? Societies and Politics at the Crossroads Edited by John Burdick, Philip Oxhorn, and Kenneth M. Roberts Visual Synergies in Fiction and Documentary Film from Latin America Edited by Miriam Haddu and Joanna Page Cuban Medical Internationalism: Origins, Evolution, and Goals By John M. Kirk and H. Michael Erisman Governance after Neoliberalism in Latin America Edited by Jean Grugel and Pía Riggirozzi Modern Poetics and Hemispheric American Cultural Studies By Justin Read Youth Violence in Latin America: Gangs and Juvenile Justice in Perspective Edited by Gareth A. Jones and Dennis Rodgers The Origins of Mercosur By Gian Luca Gardini Belize s Independence & Decolonization in Latin America: Guatemala, Britain, and the UN By Assad Shoman Post-Colonial Trinidad: An Ethnographic Journal By Colin Clarke and Gillian Clarke The Nitrate King: A Biography of Colonel John Thomas North By William Edmundson Negotiating the Free Trade Area of the Americas By Zuleika Arashiro
3 Negotiating the Free Trade Area of the Americas Zuleika Arashiro
4 NEGOTIATING THE FREE TRADE AREA OF THE AMERICAS Copyright Zuleika Arashiro, Softcover reprint of the hardcover 1st edition All rights reserved. First published in 2011 by PALGRAVE MACMILLAN in the United States a division of St. Martin s Press LLC, 175 Fifth Avenue, New York, NY Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN ISBN (ebook) DOI / Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalogue record of the book is available from the British Library. Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition: May 2011
5 To my parents, Hiroko and Jorge, my tree.
6 But the examination of the object is not an isolated act; it takes place in a context which is coloured by values and collective-unconscious, volitional impulses. (Karl Mannheim, Ideology and Utopia, 1936)
7 Contents List of Tables and Figure List of Abbreviations Acknowledgments Map of the Americas viii ix xi xii Part I Analytical Framework Introduction 3 Chapter 1 Trade Cooperation as a Policy Idea 11 Part II The FTAA Negotiations Chapter 2 The FTAA Negotiations 23 Part III Background Chapter 3 Economic Paradigms and Trade Regionalism in Latin America 51 Chapter 4 Lessons from Economic Cooperation in the Americas 65 Part IV Case Studies Chapter 5 U.S. Foreign Trade Policy: Leadership in a Constrained System 79 Chapter 6 Brazilian Foreign Trade Policy: Instrument for an Autonomous Nation 109 Part V Conclusion Conclusion 143 Appendices 151 Notes 171 References 235 Index 267
8 Tables and Figure Tables 2.1 Bilateral trade flow between the United States and selected countries, 1992 (%) Structure of exports by integration group, 2002 and 2009 (% distribution) Price variation of selected commodities (index 1985=100) U.S. Free Trade Agreements, through July Figure 1.1 Analytical framework 19
9 Abbreviations AFL-CIO APEC BRIC CAMEX CACM CARICOM CEB CEPAL/ECLAC CNBB CNI CUSFTA CUT EAI EU FTAA GATT GSP IDB IMF ISI ALADI/LAIA LAFTA MDB MERCOSUR NAFTA PMDB PSDB PRI PT OAS SAFTA American Federation of Labor and Congress of Industrial Organizations Asia Pacific Economic Cooperation Brazil, Russia, India, and China Câmara de Comércio Exterior Central American Common Market Caribbean Community Coalizão Empresarial Brasileira Comisión Económica para América Latina y el Caribe/Economic Commission for Latin America and the Caribbean Confederação Nacional dos Bispos do Brasil Confederação Nacional das Indústrias Canada U.S. Free Trade Agreement Central Única dos Trabalhadores Enterprise for the Americas Initiative European Union Free Trade Area of the Americas General Agreement on Tariffs and Trade General System of Preferences Inter-American Development Bank International Monetary Fund Import Substitution Industrialization Asociación Latinoamericana de Integración/Latin American Integration Association Latin American Free Trade Area Movimento Democrático Brasileiro Southern Common Market North American Free Trade Agreement Partido do Movimento Democrático Brasileiro Partido da Social Democracia Brasileira Partido Revolucionario Institucional Partido dos Trabalhadores Organization of American States South American Free Trade Area
10 x SENALCA REBRIP TPA UNASUL UNCTAD USTR WTO ABBREVIATIONS Secretaria Nacional de Coordenação dos Assuntos Relacionados à Alca Rede Brasileira pela Integração dos Povos Trade Promotion Authority Union of South American Nations United Nations Trade and Development Conference Office of United States Trade Representative World Trade Organization
11 Acknowledgments I owe this book to my family in Brazil. Your patience and ability to trust are the best evidence of how beliefs influence behavior. My initial encounter with the FTAA happened a decade ago, during my time at the Center for Latin American Studies, at Georgetown University. I am grateful to all the academics and friends with whom I shared the passion for nuestra Latinoamerica. Robin King, Marisol Reyes, Naomi Moniz, and Arturo Valenzuela, all contributed to the foundations of this work. A certain distance from events helps us achieve clarity. I am particularly in debt to Barry Carr, Nick Bisley, and John Minns for their continuous academic support in Australia. I also thank Maxwell Cameron, Richard Feinberg, and Anthony Jarvis for their comments on my doctoral dissertation. To all those friends who have patiently supported me throughout these years of immersion in research, I extend my gratitude. I especially wish to thank Russell L. Marks, Sophie Mav, Vanessa Nakamura, Vantier Lima, and Italo Paiva. In your unique ways, you kept me grounded in the world beyond politics. This project would not have been accomplished without the funding received through the Australian Government s Endeavour International Postgraduate Research Scholarship, and the La Trobe University Postgraduate Research Scholarship.
12 Map of the Americas
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