In 2005, Chile and China signed a free trade agreement, the first agreement of its type ever signed in Latin America. Since the agreement was signed, trade between China and Chile has grown exponentially. Chile is the leading country in Latin America that has maintained good relations with China, beginning in 1970 when Chile was the first South American country to recognize the Peoples Republic of China (Jenkins 2009). Over the years their relationship has continued to develop through the many rounds of discussions that have taken place since the FTA was first established. By examining the economic implications the China-Chile FTA has had on the Chilean economy, it is seen that while both countries trade markets are benefiting, the Chilean market is facing more negative impacts than the Chinese economy. Although both countries have solid reasoning to invest with one another, China has had much more to gain from entering into this trade relationship.
In the early 1990’s, as Chile transitioned into democracy, a campaign was begun to position Chile as the “Gateway into the Americas.” This campaign focused on “openness” or better stated “open regionalism” in order to promote market growth and advance its markets diversification (China Quarterly). As a result from its new market strategy, Chile shifted its focus from trade with superpowers such as the United States and European Union towards the Asian pacific region (Heine 2005). In 1993, Chile joined the APEC organization, making them the second Latin American country to do so (Alvarez 1998). Being a part of this agreement allowed Chile to further tap into Asian markets and gave Chile the opportunity to be exposed to many more trading partners. It also further projected their trade ...
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...of Latin America, both countries envisioned they would benefit greatly from this trade agreement. This conventional wisdom that the Chile-China free trade agreement would boost all sectors of investment and trade within both countries has partly been successful, while it has also proven to have slightly failed. Although there has been booming trade between both countries, Chile increasingly feels the pressure of Chinese market competition and furthermore both countries have lost out in the advancement of foreign direct investment. With Chile’s chief exports comprising natural resources, China has a more lasting market power simply from the fact that their primary export industry is not perishable. This conjures the question of to what extent will the Chile-China free trade agreement be impacted in the future if Chile’s does not invest in new export market materials.
The Canada-China relationship has been through many fluctuations since China’s establishment in 1949. The Canadian Cabinet decided to give its recognition in the same year as China’s establishment on 16 November. However, the diplomatic relations with China was not formed until 1970, two decades from Canada’s primary consideration. Though there were many factors influencing the Sino-Canadian relations since 1949, due to the limitation in length, this essay will focus on three main reasons, how the political consideration, the attention on human rights problems and Canada’s economic interests influenced its relations with China from 1949 to the 1990s. From 1949 to the 1960s, the relationship between China and Canada was strongly influenced by Canada’s political consideration. With Canada’s gradually pursuing of independent foreign policy together with the change in international climate eventually left the room for Canada’s recognition to China. Since then, the Canadian economic interest started to dominate any other factors in this bilateral relationship, even if Canada paid attention to China’s human rights problem. Thus, the Sino-Canadian relationship after the 1970s is a balance between Canada’s economic interests and human rights issues in China.
The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural labor force of 120 million people, many of whom migrate to industrial centers to look for factory work, and drive down wages. As long as wages are low, the United States will continue to gobble up products made in China, while Chinese consumers will prefer to buy cheaper, homespun alternatives to American products. The rise in trade deficit with China has come at a cost to jobs in the United States, accordin...
In today's globalized economies, virtually every country in the world belongs to some form of regional integrated trade organization whether by direct membership, bilateral or multilateral agreement. Regional integration is a process by which sovereign states in a particular region enter into an agreement to promote economic growth through the reduction of barriers to trade restrictions and safeguard common interests such as the environment. The removal of trade barriers results in a free trade zone thus creating a single market. Sovereign nations have many differences, some may be more economically sound and others may have a greater labor force or better technology. In the end, all regional nations must find a method to work together for the common good of all parties. The development of the North American Free Trade Agreement (NAFTA) was to solidify the nations occupying the North American continent, Canada, the United States (U.S.) and Mexico. Many proponents question the success of NAFTA for these nations. This essay will examine the advantages and disadvantages of regional integration and the regional economic development of these nations as members of NAFTA.
The economy of Latin American countries such as Argentina have often focused on only one main product at a time and imported many of the other products needed. Argentina especially followed this economic strategy in the late 1800’s. Latin American countries focus on one product it does well and does not stray from that product. The countries were just following trends and taking advantage of what the market dictates is a worthwhile product. This strategy can fall short of having long-term success and lead to a land of poverty. This was the case in most every country in Latin America, and all the economy revolved around the growth of industry in each country. Technology, increased immigration, European influence, and political policy all influenced the economic state of Latin American countries and led to economic struggles.
China Enters The World Trade Organisation China has swiftly turned into a world organizer in trade and will merely develop in significance to the global economy. These particulars are established with China's up to date economic statistics raising more than 9% per year and economists' projections of the nation's upcoming China will double its gross domestic product of the year 2000 in the year 2010. The way the Chinese government attained these remarkable economic statistics are during a restoration of Chinese trade strategies. Alteration measures in the country series from concentrated trade barriers along with technical contracts intended for agriculture, to infrastructure investment strategies and enhanced values for pharmaceutical products. On the other hand, stemming from China's economic development are dilemmas for instance inflation as well as irregular progress of the country. Moreover, after fifteen years of conferences and negotiations, on November 10, 2001 at the World Trade Organisation (WTO) Ministerial Conference in Doha, Qatar, WTO members officially permitted the consent package for the People's Republic of China. China became a full member, the WTO's 143rd, on December 11, 2001. “International economic cooperation has brought about this defining moment in the history of the multilateral trading system,” said Mike Moore, WTO Director-General, at the conclusion of the meeting of the Working Party on China's Accession. “With China's membership, the WTO will take a major step towards becoming a truly world organization. The near-universal acceptance of its rules-based system will serve a pivotal role in underpinning global economic cooperation.” http://www.wto.org/english/news_e/pres01_e/pr243_e.htm To enhan...
Collins, Joseph, and John Lear. 1995. Chile’s Free-Market Miracle: A Second Look. Oakland, Cal:.Food First.
After the fall of the ISI standard, many questions began to arise in regards to how Latin American countries should move forward in its development, improve growth, and create jobs. From around the 1930s until the 1980s after many Latin American countries became independent, they wanted to have economic success and become somewhat economically independent and self-sustaining. Initially these countries thought that the best way to move forward with was Import Substitution Industrialization (ISI). However, when the 1980s came around these counties realized that ISI was not the best policy for the economy or the future. ISI lead inefficient industries because they were not exposed to international competition, the focus was not on the rural sector and lead to impoverishing the local producers, and the extreme protectionist ideals did more harm than good. The issue that has to be resolved as Latin America moves forward pertains to unemployment and the job market; many countries are trying to fix the issues that surround the job market and define who are the people that actually have jobs so that those that do not can learn what they need to in order to become employed.
It is an important thing to learn and understand a new culture from a new country. People can learn about the cultures different and similar from a daily lifestyle all the way to the global economy. Being 1st and 2nd respectively when it comes to economic, the United States and China are both leaders of the world’s economy.But both countries have inadvertently shaped into two glaringly distinct societies with cultures that possess both similarities and differences.
The main purpose of this paper is to study and analyze the effects that the U.S. Free Trade Agreement have in Colombia’s developing economy by demonstrating the effects in Colombia’s GDP after the agreement, the effects in farmers, illegal drugs, and in the internal market share...
The most influential Free Trade Agreement is the North American Free Trade Agreement (NAFTA), signed by the United States, Canada, and Mexico. Canada and the United States accounted for 90% in exports and 55% in imports. The organization for Economic Co-Operation and Development (OECD) and the World Trade Organization (WTO) position and recognize the Mexican worker as the number one-hard working citizen. In r...
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
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