Liberalization of World Trade:Latin America

New Latin America Model <Tab/>NAFTA, the free trade agreement between Canada, USA and Mexico celebrated ten years of its existence. The negotiations about the establishment of CAFTA (Central American Free Trade Agreement) are almost over and trade diplomacy is asking the question if SAFTA (South American Free Trade Agreement) is possible. Negotiations about the free trade zone of Americas were held in mid February this year. Liberalization has found a …

…development levels is much bigger within countries of the region than with potential agreements with USA, EU or China. That means that not one country has absolute advantage, neither in technological superiority or extremely low wages. <Tab/> <Tab/>Strong cultural and historical ties of Latin American countries could make a free trade area agreement more than just that and turn it into an element of political unity.