Economics Project Abstract
FREE TRADE AREAS OF THE AMERICAS (FTAA): WHAT INTERNATIONAL CONCORDS DICTATE FOR THE GLOBAL CONSUMER MARKET
Presenter:
Nikhil Agarwal, Illinois Mathematics and Science Academy, 1500 W. Sullivan Road, Aurora, IL 60506; nagarwal@imsa.edu
Mentor:
Fred L. Fleischbien, Global Business Alliance, Inc., 445 W. Erie, Suite 109, Chicago, IL 60610
Abstract:
Following the signing of the North American Free Trade Agreement (NAFTA) in 1993, the American economy has grown substantially, as seen with the 4.3% increase in GDP in 1999. Unemployment has also substantially declined, as people have been able to find jobs in the new industry created by trade between NAFTA partners. With the success of NAFTA and other trade agreements in the Western Hemisphere, there is now an initiative to reach a concord that will work towards a free-trade zone encompassing the majority of the Western Hemisphere. This proposed agreement, termed Free Trade Areas of the Americas (FTAA), had talks launched in December of 1994 during the Summit of Americas. While there are some problems that must be overcome before the agreement can be signed, such as environmental and labor concerns, and the reinstating of fast-track authority for the United States, FTAA could potentially unite the economies of the Western Hemisphere with a combined GDP of $11 trillion (U.S.) and create the largest free trade zone in the world.