Essay
Free trade agreements in the Americas are not new. There are a couple that have been around for a while namely the NAFTA between the United States, Canada and Mexico as well as the CAFTA that also includes the United States, Honduras, Nicaragua, Dominican Republic, Costa Rica and Guatemala. Of course, the FTAA, offering a free trade zone between the Americas would have spurred economic growth for both big and small countries alike. These were the reasons why governments were pushing for the FTAA to become a reality so that it would benefit one and all in the form of economic growth as well as closing economic gaps between countries in the region (Amadeo, 2016).
As for the reasons why protests against the FTAA occur is because of the perceived failure of the NAFTA where good American jobs are outsourced to other countries. Also, another reason is because this has led to disastrous effects on the environment in other countries and which has led to health problems for locals. Given that the FTAA would comprise governments from both North and South America, trade would definitely open up between the continents but the ill-effects on both American jobs and the state of the environment will affect these countries on a much larger scale. Apart from this, the FTAA, in particular, will not only cause further job loss but affect family farmers in particular. This was one reason why Brazil was not keen on going through with the agreement back in 2004 (“Antecedents”). If anything, protesters believe that free trade will only increase poverty and economic inequality in the long run since these kind of agreement don't take the citizens' opinions into consideration nor is it considered sustainable by experts in the area of trade (“Top Ten Reasons”).
While the FTAA will offer economic growth and the improvement of living conditions in smaller countries, the real issue is with sustainability of these jobs. Given that it will have devastating effects in terms of job loss and the environment, this will only be compounded as larger multinationals will arm-twist local firms out of business. In fact, if there are any demands made for an increase in payments, jobs can be moved to another country, leaving these workers in the lurch. If there's an increase in living standards, it will only be for a short while until corporations decide to find cheaper labor elsewhere. Without a doubt, this trade agreement will help to serve the interests of large corporations based in the United States and Canada. So, these trade agreements aren't always balanced or take into consideration the long-term needs of nations in the transaction.
For a number of years, government regulation has been the reason why corporations have been held back from toeing the line, ethically speaking. In order to generate more profits, large countries like the United States and Canada send unskilled jobs overseas that are largely temporary in nature. However, trade agreements such as this which encourage competition from foreign companies will often put local firms out of work and which will leave people to work for American offshore companies that don't pay their employees very well. No differently, this trend can be stopped in smaller countries by governments that not only support their local businesses through better education and technology but also create legislation that prevents them from being outmuscled by foreign competitors with deep pockets. Of course, imposing tariffs that regional trade agreements seek to lift might be that factor that saves their own businesses and economies as a result.
As for whether sub-regional trading blocs can help smaller countries negotiate better terms with larger nations, this is unfortunately not possible since the United States itself, which likes to call the shots, prefers to carry out trade based on the rules that they dictate (Writing, 2017). This was why the FTAA failed in the first place. Even if the FTAA does offer local companies opportunities to increase their customer base, the rules of the agreement hardly work in the favor of smaller countries but those in developed ones who would like to churn out greater profits by expansion to other countries without taking their needs into consideration. In fact, given how lopsided this can turn out for smaller countries, it is truly best that participating in regional trade agreements is kept within reasonable limits so that governments can invest in their own businesses and economies, in terms of both training and technology. In this way, they can also register sustainable growth that will improve the standard of living steadily.
If one has to choose between instability or cooperation, all this depends on whether the terms of these trade agreements between bigger and smaller countries are truly balanced and fair. If larger nations place severe restrictions on smaller ones, as indicated by the FTAA and especially related to agriculture, then ignoring the after-effects of trade in this manner is only foolishness. If anything this cannot be considered as cooperation but actually neocolonialism through the spread of its multinational corporations throughout the world.
Last but not the least, while it is difficult to consider regional trade agreements to be all negative as it has improved the economic conditions of people living in smaller undeveloped nations, the truth is that these trade agreements are usually not as fair as they should be. This is because larger nations continue to impose their rules, products and terms on smaller nations and which do not work in the best interests of the latter. While rolling back these trade agreements is not realistic, as globalization is on the rise, smaller governments should definitely think more seriously about the implications that these trade agreements and their restrictions can do to the country, even foreign direct investment can improve the country's fortunes, if only for a while.
References
Amadeo, K. (2016). Why the World's Largest Trade Zone Failed. The Balance. Retrieved from https://www.thebalance.com/ftaa-agreement-member-countries-pros-and-cons-3305577
Antecedents of the FTAA Process. (n.d.) Free Trade Area of the Americas - FTAA. Retrieved from http://www.alca-ftaa.org/View_e.asp
Top Ten Reasons to Oppose the Free Trade Area of the Americas. (2011). Global Exchange. Retrieved from http://www.globalexchange.org/resources/ftaa/oppose/
Writing, Alexis. (2017). Pros and Cons of the FTAA. Legal Beagle Website. Retrieved from http://legalbeagle.com/8523817-pro-cons-ftaa.html
