Vol. 2, Issue 5 (2015)
Globalization, and Regional Trade Agreement: A Case Study of Free Trade Area of Latin America (FTAA)
Author(s): Abdulmajeed Aminu Mahmoud, Dayyabu Ahmed, Mahmud Sulaiman
Abstract: The trend towards regional integration has produced organizations and agreements based on regional trade agreements such as the Free Trade Area of Latin America (FTAA) to allow member countries to unite their economies as well as allowing members to attain more power in their trade policies by acting collectively so that all member countries could benefit from such an agreement. The United State of America has done little to expand its trade relations with member countries under the FTAA. The negotiations of the FTAA and the establishment of a common market in the western hemisphere, which will be the largest trade group in the world is one of the most ambitious agreement to come into reality. There are various objections by member countries most especially Brazil over agricultural subsidies given by US to its farmers which helped the farmers to capture and dominate the markets of Latin American counties. This paper seeks to explain the role of FTAA in what is trying to achieve in Latin America as well as the challenges encountered.