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Free Trade Agreement - FTA membership

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With regards to the various agreements/treaties discussed, EU, WTO, NAFTA, CARICOM, APEC, MERCOSUR and ASEAN:
 Discuss any pending applications, candidate countries, or associate members.
 What are the advantages/implications for trade within the trading group and for the United States?
 Determine the GDP and GNP of those pending countries.
 Based upon your assessment, do you think these countries should become full members of the FTAs they have applied to? Why, or why not?

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Solution Summary

This solution explains issues related to associate members of a free trade agreement. The sources used are also included in the solution.

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Step 1
One of the agreements discussed is MERCOSUR, this agreement has been signed among Argentina, Brazil, Paraguay, Uruguay and Venezuela to promote free trade fluid movement of goods, people, and currency. MERCOSUR is now recognized as a customs union and a trading bloc. The current associate members of MERCOSUR are Chile, Bolivia, Colombia, Ecuador, and Peru. These countries do not have full voting rights nor do they have full access to the markets of full members of the bloc. The benefits these countries receive are tariff reductions (c). The forerunner for full membership in MERCOSUR is Bolivia. The main barrier is that Bolivia does not agree to the common external tariff.

Step 2
The main advantages for trade within the group are that member countries have obtained good results from MERCOSUR both in terms of ...

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