Monday, April 10, 2006

Resurrection Attempt

The three North America Free Trade Agreement (NAFTA) countries (Canada, Mexico and the US) have committed to focus their 2006 trade agenda in reactivating Free Trade of the Americas (FTAA) negotiations.

Colombia is also holding talks with more than thirty countries in an attempt to revamp prospects for the free trade area. At the same time the NAFTA countries and Colombia are using the Latin American Integration Association (ALADI) to set the ground for the FTAA. The idea is to reduce transaction costs between country members and consolidate existing trade agreements among ALADI countries.

Analysts foresee the establishment of a Mini-FTAA that would be limited to around 12 countries. A NAFTA-CAFTA-DR-Colombia-Chile trade block is a feasible option.


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