Study of regional free trade areas

Résumé du document

The free trade area was founded on 26 March 1991 in Asuncion with the Treaty of Asuncion. There are 5 members (Brazil, Paraguay, Uruguay and Argentina since 1991 and Venezuela since 2006) and 5 associate members - Chile, Peru, Bolivia, Ecuador and Colombia. The motto is 'Our North is the South'. Its important aims are the free circulation of goods, a common commercial policy, a coordination of macro economy and a harmonization of legislation. First, the MERCOSUR is an element of stability in terms of economy and safety. All countries discuss together to agree about different political agreements. They resolve questions of public interests. It reinforces the dialogue about safety and the cooperation between countries, for example, the nuclear disarmament. This union is a useful tool to strengthen and deepen the economic reforms initiated by individual member states: It improves the level of consumer welfare, which is very important for the economy and the standard of living of the population. There are a lot of exchanges between the EU and the MERCOSUR, but the HDI in Mercosur stays lower than in the European Union (and even more lower than in the NAFTA). It means that not only should the economy be developed, but also the standard of living and the consumer purchasing power.

Extraits

[...] Are different cultures an obstacle? I choose the EU as example because it's the one I know the best and where I live. Moreover, because I lived and work in different countries (China, Germany, Thailand and Cambodia), I have the experience of intercultural and I don't think that it's always an inconvenience to work. But is it possible to have the same politic, the same objectives, the same currency ? a. THE CANDIDATE TURKEY As Mina said in class, even if it's not official, Turkey is no more a real candidate for EU. [...]

[...] Moreover, Germany was divided in a first time in 4 parts, and then quickly in 2 part: the German Democratic Republic (Soviet Union) and the Federal Republic of Germany (France, the United Kingdom, and the United States). It was not easy for Germany; it was no more a powerful country. German citizens were ashamed of their past (and some of them still are) and accepted relatively easily to live in occupied territories. In 1990 Germany is one country, without East or West part. The currency was new, the politic was new, also as the economic system: it's was new country. [...]

[...] But I don't know if it's not too fast. We see with the crisis that it's hard for the countries” to pay for others until they reach their standard of living and economic level. Because even the countries” have problem with their economy and it's not only because of China. iii. AN ECONOMIC POWER There are 490 Million EU citizens, who represent of world's population. In term of economics, it's 30% of global GDP trillion in 2010) and 55% of combined worldwide Official Development assistance. [...]

[...] For Germany it was a tactic because of the next and not far elections, but on the international scene it was a disaster. Economy: The trick in Germany is the inflation. They think that inflation is the solution for any crisis Firms Insvestments innovations Wages increase Production costs increase lower than by competitors in neighbors' countries 9 Inflation The Nobel Prize Paul Krugman tried to resolve the Spanish crisis in 2009 in recommending 20% wages decrease. Then, Spanish politicians ask somebody else for new advices because it was impossible. [...]

[...] It permitted to small and medium-sized business to integrate them into international trade. The MERCOSUR has a considerable reservoir of natural resources of global forested areas of global cattle sotcks) as a strong industrial base of global soya production of developing countries industrial output): it shows that MERCOSUR is important in the global economy and will be more important in the future thanks to his raw material reservoir b. NAFTA 5 i. PRESENTATION The NAFTA was founded in 1994 to facilitate business exchanges thanks to free preferential trading arrangements. [...]