|Free Trade Area of the Americas - FTAA
Original: English – Spanish
FTAA - COMMITTEE OF
GOVERNMENT REPRESENTATIVES ON THE PARTICIPATION OF
CONTRIBUTION IN RESPONSE TO THE OPEN AND ONGOING INVITATION
Financial Global Process Inside A Global Market Process: The Next Challenge
In 1992, European Monetary System (EMS) fell into bankruptcy because of several speculative operations performed by both local and international financiers. This shock to the system delayed European Union launch, nevertheless chancellors agreed on convergence criteria that leaded towards Euro, Central Bank Of Europe and a formidable new economy whose barriers made other countries to join its neighbor. The Americas could face a similar task if a free trade area is not getting along with certain swap instruments and financial policies, the damage for some Latin American states would not be easy to get over, but the answer is not a law against equity movements.
Some general suggestions and directives based on market, professional, corporative and the author’s comments are showed below:
* As a first view, there are two
common currencies through the area: Eastern Caribbean dollar and US
* Such currencies have helped to
enforce commerce among those guest nations; there is no external
* Such currencies have helped to enforce commerce among those guest nations; there is no external exchange rate.
* The former flows on several countries from the West Indies, the latter flows on USA (continental and associated territories), Panama, Ecuador and some countries from Central America are on their way to employ US Dollar as domestic cash. Some economies are experiencing monetary integration while commercial integration.
* As an economic fact, if it is our main interest to speed up this trading block in order to succeed as a whole market, we will achieve such goal with a few internal exchange rates and not nowadays’ mixture.
More than a trading block FTAA should evolve toward an economic union, because the Global Process demands integration of minor economies, thus, survive and compete. Furthermore, world markets tend to reward those players able to play in group, to be financially orthodox and to have efficient and fair financial markets; it would not be worth it going on FTAA without managing equally methods, procedures, levies, taxes, and additional technical regulations referred to international trade and money flows.
It is compulsory and mandatory the fact to ease and relax commercial conditions inside the Americas’ agreement.
Finally, some states have to foster and endow internal financial markets of democracy as a remarkable instrument warranting access to every investor. Foreign trade is driven by two general principles: reciprocity and cooperation,which might not work unless speakers of the house endorse two basic protocols: an economy whose engine be free enterprise and the right of all the people to reach wealth.
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