Latin American Countries Skeptical of U.S. Trade Agreement

In an effort to rouse support for a pan-American free-trade agreement, President Bush expanded the number of products that Ecuador, Bolivia, Peru and Colombia could export to the United States without paying tariffs. In addition, 140 million dollars would be given by the United States to defray the costs of administering any pan-American trade deal. However, most Latin American countries are looking for one key measure: that the US significantly reduce agricultural tariffs and subsidies to farmers. While some Latin American leaders are optimistic about a deal, others, such as the President-elect of Brazil, have stated that signing the deal would effectively annex Brazil to the United States. With Brazil constituting 40% of the South America’s economy, a deal would have to consider Brazil’s interests. All of these factors, in addition to popular support against the trade agreement, cast doubt on the viability of a pan-American agreement. – YaleGlobal