GO 357 The Political Economy of Regionalism Walter Hatch Colby College NAFTA vs Mercosur

Extending the FTA Southward

Summit of the Americas (1994) Miami’s Viscaya Museum

High Hopes “ Our continued economic progress depends on sound economic policies, sustainable development, and dynamic private sectors. A key to prosperity is trade without barriers, without subsidies, without unfair trade practices, and with an increasing stream of productive investments … We therefore resolve to begin immediately to construct the [FTAA].” “ Our continued economic progress depends on sound economic policies, sustainable development, and dynamic private sectors. A key to prosperity is trade without barriers, without subsidies, without unfair trade practices, and with an increasing stream of productive investments … We therefore resolve to begin immediately to construct the [FTAA].”

A Good Student of Neo-Liberalism

Goodbye to ISI Hello “Washington Consensus” Trade liberalization Trade liberalization Deregulation Deregulation Competition Policy Competition Policy Privatization Privatization

Summit of the Americas (2005) Mar del Plata, Buenos Aires, Argentina

What Happened? 1) A global financial crisis from Thailand and South Korea to Brazil and Argentina

What Happened? 2) Poor economic performance

What Happened? 3) Growing disenchantment with neo- liberal policies

Revenge of the Voters Brazil Brazil Luiz Inácio Lula da Silva (2003)Luiz Inácio Lula da Silva (2003) Argentina Argentina Néstor Kirchner (2003)Néstor Kirchner (2003) Uruguay Uruguay Tabaré Vázquez (2005)Tabaré Vázquez (2005) Bolivia Bolivia Evo Morales (2006)Evo Morales (2006) Chile Chile Michelle Bachelet (2006)Michelle Bachelet (2006)

Regionalism?

CAFTA, si!

FTAA, no!

Lula

Mercosur

Common Market of the Southern Cone 1991: The Big 2 and Little : The Big 2 and Little 2 Create a customs union first Create a customs union first With 800 exceptions to CET?With 800 exceptions to CET? Then create a common market Then create a common market But exclude sugar and autos?But exclude sugar and autos? Hasn’t met its own deadlines Hasn’t met its own deadlines 1995 for customs union1995 for customs union

Hugo

Defensive Regionalism Protocol of Ouro Petro (12/2004) Protocol of Ouro Petro (12/2004) Mercosur as bloc at WTOMercosur as bloc at WTO EU-Mercosur FTA EU-Mercosur FTA Counterweight to USACounterweight to USA

A Fair Fight?