Economic Blocs and Globalization in the Americas

Globalization and Economic Blocs

Globalization and economic blocs: Globalization and the global economy create a need for integration among states. Countries set trade agreements and regional economic blocs, forming with the purpose of negotiating better terms with other markets and expanding their economic space.

Major Economic Blocs in America

• 1) The North American Free Trade Agreement (NAFTA): Formed by Mexico, the U.S., and Canada, creating a free trade area where customs duties were released between member countries in the trade of goods and services.
• 2) The Andean Integration System (SAI): Made up of Colombia, Venezuela, Ecuador, Peru, and Bolivia. It contributes to economic growth, promotes industrial development, encourages technological modernization, and protects the Andean ecological heritage.
• 3) The Central American Common Market (CACM): Made up of Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica. They agreed on extra efforts to reduce poverty, promote development, peace, and democracy to consolidate and coordinate actions for disaster prevention and the precariousness of the natural environment.
• 4) The Caribbean Community (CARICOM): Formed by Antigua and Barbuda, Barbados, Bahamas, Belize, Guyana, Trinidad and Tobago, Jamaica, Dominica, Grenada, St. Kitts and Nevis, Anguilla, St. Lucia, St. Vincent and the Grenadines, and the British colony of Montserrat.

Furthermore, it follows!

The Expansion of MERCOSUR

5) MERCOSUR: From the Treaty of Asunción (1991), Uruguay, Paraguay, Brazil, and Argentina were integrated into a regional bloc. Chile later integrated, and Bolivia signed special agreements with member countries and expressed its intention to join. The countries were integrated into MERCOSUR with the purpose of creating a regional market designed to establish a common external tariff; achieve, through adequate international consolidation, the insertion of a large economic area; promote scientific and technological development; and modernize economies to broaden the quality of goods and services in order to improve the inhabitants' living conditions. MERCOSUR includes cooperation mechanisms in the areas of justice, the environment, labor, education, and culture. The deal means the creation of a market of almost 200,000 million people, where people can freely move goods and services.