Trade Blocs

Abstract

   Convey a brief yet meaningful conversation as regards the trade organizations associated with the United States.

Introduction

What is actually involved?
   Before a proper address, the topic at hand some context may be in order. The array of associations, organizations and other collectives are all organic in their growth and in their associations with others. Moreover, many of them overlap, while some are contained within others.

   The status of country to a trading bloc is various, usually holding one of the following distinctions: founded, joined, former, suspended, applicant, Associate, Observer, Full Member and Dialogue partner. The US is an Observer with SAARC and a Dialogue Partner with PIF.

   As far back as 1948, the United States was part of a supranational movement, still in existence to this day, called the OAS (the organization for American states). While not a trading bloc in its own right, the purpose of the organization all along has been to create ease and coordinate efforts on entire hemispheric basis. Therefore, its very existence has been the support to both the birth and actuation of the entities known as NAFTA and CAFTA; and may find itself part of a supra-continental organization of trade in the future.
   The United States is a member of NAFTA, along with its border countries, Canada and Mexico; established in 1993 under the Clinton administration. In 2005, the Bush administration extended the trade reach by establishing CAFTA, a special set of trade considerations reaching well into Central America. CAFTA includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
   It seems the only thing that these organizations have in common is an opportunity to open up trade. Beyond that, the way they are organized and legislated, the way policies are implemented, and all else that one might assign to such a supranational entity seems purely dictated on a case-by-case basis.
   Indeed, considerations of tariffs and taxes and the like are not even contained within these bounds. Beyond trade blocs are collective organizations such as Common markets, Economic and Monetary unions, Customs and monetary unions and Customs unions. One imagines that an exceptionally good living can be created as a consultant, a subject matter expert, if one had the ability to gain and maintain mastery over this bewildering blizzard of moving parts.

Thoughts on NAFTA

   If we step outside of ethnocentricity, one quickly realizes that questions such as "which trade bloc is most important" vanish in relativism.
   NAFTA, as it is, sought to eliminate barriers of trade, increase investment between the US, Canada and Mexico, eventually eliminate tariffs, with separate provisions to cooperate on matters pertaining to the environment and labor. The only area not negotiated trilaterally was Agriculture.
   Despite disagreement being effectively about growing the financial well-being of the countries together, issues involving bankruptcies, natural resources and the like continue. Since the advent of NAFTA there has been an increase in foreign takeovers of industry, and in some sectors, U.S. deindustrialization.
   Truly, this has insensibly been about money, and nothing more. There seems little or no political (or otherwise) convergence or advantage. Unlike the EU, the sought to make the conversations of trade a mere part of a larger conversation of unity, NAFTA clearly does not enjoy a borderless region. Indeed, the US continues a heated debate as regards its southern border, although the agreement does allow admission for temporary employment under certain circumstances.
   Despite standards having been set forth, rules and enforcement sometimes occur ad hoc. Years ago when the Brazilian cotton industry challenged the equanimity of trade, given Americans subsidizing their own, once America was threatened a negotiating team was sent to Brazil to broker a resolution. Given that the American subsidies cannot be turned on and off like a light switch the conclusion was that until America could resolve its own subsidy issue it would begin to subsidize Brazil's cotton crop as well, to the tune of $15 million a year, indefinitely.
   It seems the overarching strength of these agreements (at least the ones the United States participates in) lies in strengthening the Corporatocracy. This seems very shortsighted. Other trade blocs may not be as aggressive as the EU is (lack of borders, common currency, and the like), but most seem to be leveraging the extra-governmental neighborliness to as much good advantage as possible; usually for its citizens.

Conclusion

   The author envisions an annual e-book, web based, constantly updated and available for a nominal annual fee. Although on the one hand this effort simply scratches the surface, it is a good faith effort and a solid start on embracing an understanding of all that is involved based on the notion of trade blocs.

   It may appear to the reader that some opinion may have leaked, please be assured that the author does not have "a dog in the game". This is the authors own constructive criticism, and moving forward it becomes paramount to couch insights in as neutral a tone as possible. However, this is merely a sketch; and this document only bears facts nonetheless.
   Clearly, this inquiry has only just begun.