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• W138652912 abstract "I. INTRODUCTION This Note examines how the implementation of the Rose Garden Agreement(1) between the United States of America, Brazil, Argentina, Paraguay, and Uruguay may lead to individual free trade agreements among these countries and may eventually lead to a future hemispheric free trade zone. This Note will discuss the positive and negative outcomes, to date, of the Rose Garden Agreement and will show that the United States has benefitted the Agreement economically and politically. Although in the short run the South American countries involved may be economically harmed due to the sacrificial policies necessary for market adjustment, in the long run, these countries will be helped by the Rose Garden Agreement. II. The Ideal - A Hemispheric Free Trade Zone The countries of the Western hemisphere, led by the United States, are beginning to recognize the need for open trade and common markets in the region. Indeed, President George Bush advocated the establishment of a hemispheric free trade zone that would stretch from Alaska in the North to (South America's) Tierra del Fuego in the South.(2) According to the Bush Administration, a hemispheric free trade area would link its members diverse cultures, work forces, and creative talents.(3) In the Bush Administration's view, this link would lead to new jobs, more investment opportunities, improved products and greater for all of the trade zone's members.(4) Furthermore, opening new markets in the Western Hemisphere could serve as a check against potential European and Asian protectionism.(5) According to U.S. proponents, a hemispheric free trade zone would be based on democracy and free markets(6) and would join nations that, in the words of President Bush, share an unshakable belief in the dignity and rights of man, the conviction that just government derives its power the people; the relief that men and women everywhere must be free to enjoy the fruits of their labor, and ... that the rule of law must govern the conduct of nations.(7) The Bush Administration estimated, however, that a hemispheric free trade zone in the Americas would take at least ten years to achieve.(8) A. Enterprise for the Americas Initiative In order to involve South American nations in the development of a hemispheric free trade area, the Bush Administration launched the Enterprise for the Americas Initiative (EAI) in 1990.(9) The EAI seeks to bring new jobs and better products to the region and to encourage and reward initiative, all of which are intended to inspire people in the Americas to better themselves.(10) The EAI also sets goals to combine environmental protection with bilateral debt relief, to eradicate the disease of drugs, and to prevent the proliferation of nuclear weapons in the region.(11) Because the Bush Administration felt that prosperity in our hemisphere depends on trade, not aid,(12) the EAI aims to increase trade and investment between North and South America and reduce South America's foreign debt.(13) B. The Southern Cone Common Market (Mercosur) In support of the concepts articulated in President Bush's EAI, Brazil, Argentina, Paraguay and Uruguay signed a treaty on March 16, 1991 pledging to establish the Southern Cone Common Market (Mercosur)(14) by December 31, 1994.(15) The treaty's goal is to eliminate all tariffs within the common market and to establish a common external tariff by 1994.(16) The Mercosur nations' transitions to democracy aided by the decline of the former Communist bloc countries has forced Latin American leaders to speed the rebuilding of their economies.(17) Brazil, for example, is implementing structural reforms such as selling government-owned enterprises, offering investment incentives, and reducing trade barriers, as well as implementing tax reform and economic deregulation. …" @default.
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• W138652912 date "1992-09-22" @default.
• W138652912 modified "2023-09-22" @default.
• W138652912 title "The Rose Garden Agreement: Is Mercosur the Next Step to a Hemispheric Free Trade Zone?" @default.
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