Integration and Competiveness in the Americas

1
Integration and Competiveness in the Americas

• Gaspare M. Genna
• Department of Political Science
• The University of Texas at El Paso

2
Why Sign an FTA?

• Benefits gt Costs
• Preferences
• Patterns of Trade
• Level of Development
• Comparative Advantage
• Size of Markets

3
(No Transcript)
4
(No Transcript)
5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
Actors

• Mercosur/Mercosul
• Argentina, Brazil, Paraguay and Uruguay
• Bolivia, Chile, Peru and Venezuela (Mexico)
• United States
• Peoples Republic of China

9
US Trade Strategy

• Robert B. Zoellick
• Competitive Liberalization
• Restructuring the WTO
• US-based FTAs
• Bilateral or Regional
• Central America
• Caribbean Basin Initiative

10
Agriculture Subsidies

• US 2002
• US170 billion
• Sustained price supports
• Trade Promotion Authority

11
Mercosur Agricultural Exports

• Paraguay 65
• Uruguay 55
• Argentina 52
• Brazil 33

12
US-Mercosur Trade Patterns

• Of all exports to Mercosur, 83.3 was in
  manufactured goods.
• Of all imports from Mercosur, 28.3 was primary
  materials

13
PRC-Latin America Economic Relations

• Worlds largest consumer of oil
• G-20 member
• Mercosur exports to China grew by 79.8 (2003)
• Primary goods
• 36.5 of all FDI came from China (2003)
• Oil exploration
• Economic infrastructure

14
Implications

• The rise of China
• Degree of Dissatisfaction
• Hemispheric Integration