Essay about Free Trade in South America: Mercosur and Other Groups

Essay about Free Trade in South America: Mercosur and Other Groups

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Over the last 75 years, South America has done a large amount of economic development. This economic development has been done to try and enhance the relations with other economic superpowers. The European Union was created after the Second World War as a way for European countries to trade without duties or tariffs, and as a way to share knowledge of industrial development. After the EU was created, it was clear that if South America wanted to compete on a world stage, they would need to implement a common market. South America has had plenty attempts at common markets, Latin America was first with the Central American Common Market, which they followed with Latin American Free Trade Association. The Latin American Free Trade Association included some countries from South America, making it South America’s first try at a free trade area. Soon after, a sub group called the Andean Community of Nations was created, which was strictly for South America.
In the 1950’s, Latin America was looking to create free market trading as a way to boost the local economy. The first attempt to do this was the Central American Common Market (CACM). The CACM was created by El Salvador, Guatemala, Honduras, and Nicaragua. The group began meeting in 1958 but wasn’t official until the signing of the General Treaty on Central American Economic Integration in December 1960. Costa Rica joined CACM two years later in 1962. The main agenda of CACM was to “create a free trade area among these five nations and to share insight on industry organization” (Editors). This was unfortunately hindered by “The Soccer War of 1969.” The Soccer War was a conflict between Honduras and El Salvador over economic issues that was enflamed by a semifinal for the 1970 World...

... middle of paper ...

The Editors of Encyclopædia Britannica. "Central American Common Market (CACM)." Encyclopedia Britannica Online. Encyclopedia Britannica. Web. 08 May 2014. .
"The Latin-American Integration Association (ALADI)." International Transport Workers Federation. Web. 08 May 2014.
Ramos, Victor A. "Trade." Encyclopedia Britannica Online. Encyclopedia Britannica. Web. 08 May 2014. .
We Are Andean Community. San Isidro: Comunidad Andina. Print. Accessed at:
"The Soccer War 1969 - Kapuscinski." The Soccer War 1969 - Kapuscinski. Web. 08 May 2014. .

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