What role is played by the Central American Free Trade Agreement (CAFTA)?
The USA is using CAFTA to extend NAFTA s scope to the south. If you consider the countries involved, you will see the asymmetric nature of their economic relations. The majority of the exports from central-American countries go to the north but conversely the countries on the isthmus are of secondary economic importance to the USA. Even in Mexico, only the north has benefited from NAFTA so far, because of its economic proximity to the USA. What do you think of the free trade agreement announced between Mercosur and the Andean Community? The Andean Community and Mercosur have been having talks for a long time. The fact that they have now reached a real agreement is down to the commitment of Brazil. The market of Mercosur alone is too small for its expanding economy, so Brazil is taking steps to create a south-American market. Since there has been little trade integration until now, Brazil is funding many joint infrastructure plans to create the physical conditions needed for trade. What
