Table Of ContentSTUDIES OF THE AMERICAS
edited by
Maxine Molyneux
Institute for the Study of the Americas
University of London
School of Advanced Study
Titles in this series are multidisciplinary studies of aspects of the societies of the hemisphere, 
particularly in the areas of politics, economics, history, anthropology, sociology, and the 
 environment. The series covers a comparative perspective across the Americas, including 
Canada and the Caribbean as well as the United States and Latin America.
Titles in this series published by Palgrave Macmillan:
Cuba’s Military 1990–2005: Revolutionary Soldiers during Counter-Revolutionary 
Times
  By Hal Klepak
The Judicialization of Politics in Latin America
  Edited by Rachel Sieder, Line Schjolden, and Alan Angell
Latin America: A New Interpretation
  By Laurence Whitehead
Appropriation as Practice: Art and Identity in Argentina
  By Arnd Schneider
America and Enlightenment Constitutionalism
  Edited by Gary L. McDowell and Johnathan O’Neill
Vargas and Brazil: New Perspectives
  Edited by Jens R. Hentschke
When Was Latin America Modern?
  Edited by Nicola Miller and Stephen Hart
Debating Cuban Exceptionalism
  Edited by Bert Hoffman and Laurence Whitehead
Caribbean Land and Development Revisited
  Edited by Jean Besson and Janet Momsen
Cultures of the Lusophone Black Atlantic
  Edited by Nancy Priscilla Naro, Roger Sansi-Roca, and David H. Treece
Democratization, Development, and Legality: Chile, 1831–1973
  By Julio Faundez
The Hispanic World and American Intellectual Life, 1820–1880
  By Iván Jaksic´
The Role of Mexico’s Plural in Latin American Literary and Political Culture: From Tlatelolco 
to the “Philanthropic Ogre”
  By John King
Faith and Impiety in Revolutionary Mexico
  Edited by Matthew Butler
Reinventing Modernity in Latin America: Intellectuals Imagine the Future, 1900–1930
  By Nicola Miller
The Republican Party and Immigration Politics: From Proposition 187 to George W. Bush
  By Andrew Wroe
The Political Economy of Hemispheric Integration: Responding to Globalization in 
the Americas
  Edited by Diego Sánchez-Ancochea and Kenneth C. Shadlen
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Ronald Reagan and the 1980s: Perceptions, Policies, Legacies
  Edited by Cheryl Hudson and Gareth Davies
Wellbeing and Development in Peru: Local and Universal Views Confronted
  Edited by James Copestake
The Federal Nation: Perspectives on American Federalism
  Edited by Iwan W. Morgan and Philip J. Davies
Base Colonies in the Western Hemisphere, 1940–1967
  By Steven High
Beyond Neoliberalism in Latin America? Societies and Politics at the Crossroads
  Edited by John Burdick, Philip Oxhorn, and Kenneth M. Roberts
Visual Synergies in Fiction and Documentary Film from Latin America
  Edited by Miriam Haddu and Joanna Page
Cuban Medical Internationalism: Origins, Evolution, and Goals
  By John M. Kirk and H. Michael Erisman 
Governance after Neoliberalism in Latin America
  Edited by Jean Grugel and Pía Riggirozzi
Modern Poetics and Hemispheric American Cultural Studies
  By Justin Read
Youth Violence in Latin America: Gangs and Juvenile Justice in Perspective
  Edited by Gareth A. Jones and Dennis Rodgers
The Origins of Mercosur 
  By Gian Luca Gardini
Belize’s Independence & Decolonization in Latin America: Guatemala, Britain, and the UN
  By Assad Shoman
Post-Colonial Trinidad: An Ethnographic Journal
  By Colin Clarke and Gillian Clarke
The Nitrate King: A Biography of “Colonel” John Thomas North
  By William Edmundson
Negotiating the Free Trade Area of the Americas
  By Zuleika Arashiro
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Negotiating the Free Trade 
Area of the Americas
Zuleika Arashiro
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NEGOTIATING THE FREE TRADE AREA OF THE AMERICAS
Copyright © Zuleika Arashiro, 2011.
All rights reserved. 
First published in 2011 by
PALGRAVE MACMILLAN®
in the United States—a division of St. Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the 
world, this is by Palgrave Macmillan, a division of Macmillan Publishers 
Limited, registered in England, company number 785998, of Houndmills, 
Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies 
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States, 
the United Kingdom, Europe and other countries.
ISBN: 978–0–230–11279–7
Library of Congress Cataloging-in-Publication Data is available from the 
Library of Congress.
A catalogue record of the book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd., Chennai, India.
First edition: May 2011
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
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To my parents, Hiroko and Jorge, my tree.
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But the examination of the object is not an isolated act; it takes place in a context 
which is coloured by values and collective-unconscious, volitional impulses.
(Karl Mannheim, Ideology and Utopia, 1936)
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Contents
List of Tables and Figure  viii
List of Abbreviations  ix
Acknowledgments  xi
Map of the Americas  xii
Part I  Analytical Framework
Introduction  3
Chapter 1 
Trade Cooperation as a Policy Idea  11
Part II  The FTAA Negotiations
Chapter 2 
The FTAA Negotiations  23
Part III  Background
Chapter 3 
Economic Paradigms and Trade Regionalism in Latin America  51
Chapter 4 
Lessons from Economic Cooperation in the Americas  65
Part IV  Case Studies
Chapter 5
U.S. Foreign Trade Policy: Leadership in a Constrained System  79
Chapter 6
Brazilian Foreign Trade Policy: Instrument for 
  an Autonomous Nation  109
Part V  Conclusion
Conclusion  143
Appendices  151
Notes  171
References  235
Index  267
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Tables and Figure
Tables
2.1   Bilateral trade flow between the United States and 
selected countries, 1992 (%)  25
2.2   Structure of exports by integration group, 2002 
and 2009 (% distribution)  29
3.1  Price variation of selected commodities (index 1985=100)  58
5.1  U.S. Free Trade Agreements, through July 2010  105
Figure
1.1  Analytical framework  19
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Abbreviations
AFL-CIO American Federation of Labor and Congress of 
Industrial Organizations
APEC Asia Pacific Economic Cooperation
BRIC Brazil, Russia, India, and China
CAMEX Câmara de Comércio Exterior
CACM Central American Common Market
CARICOM Caribbean Community
CEB Coalizão Empresarial Brasileira
CEPAL/ECLAC Comisión Económica para América Latina y el 
Caribe/Economic Commission for Latin America 
and the Caribbean
CNBB Confederação Nacional dos Bispos do Brasil
CNI Confederação Nacional das Indústrias
CUSFTA Canada–U.S. Free Trade Agreement
CUT Central Única dos Trabalhadores
EAI Enterprise for the Americas Initiative
EU European Union
FTAA Free Trade Area of the Americas
GATT General Agreement on Tariffs and Trade
GSP General System of Preferences
IDB Inter-American Development Bank
IMF International Monetary Fund
ISI Import Substitution Industrialization
ALADI/LAIA Asociación Latinoamericana de Integración/Latin 
American Integration Association
LAFTA Latin American Free Trade Area
MDB Movimento Democrático Brasileiro
MERCOSUR Southern Common Market
NAFTA North American Free Trade Agreement
PMDB Partido do Movimento Democrático Brasileiro
PSDB Partido da Social Democracia Brasileira
PRI Partido Revolucionario Institucional
PT  Partido dos Trabalhadores
OAS Organization of American States
SAFTA South American Free Trade Area
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Description:The first detailed historical account of the Free Trade Area of the Americas (FTAA) negotiations, this book covers the genesis of the project in the early 1990s to its demise in late 2003. It examines how the FTAA, an Inter-American policy idea, was incompatible with the predominant ideas and belief