|| Author: Duncan Riley|

Asuncion Agreement

These trade agreements are good examples of the impact that international cooperation can have on the economies of developing countries. The continued promotion of free trade, both within Latin America and with other nations, will foster growth and opportunities for the entire Latin American population. Founded in 2011, the Peaceful Alliance is a Latin American trading bloc comprising four member countries: Chile, Colombia, Mexico and Peru. Its objective is to establish a comprehensive trade relationship between their member states, promote the free movement of capital, goods, people and services and further develop this relationship with Asia-Pacific trade. Under this agreement, Member States undertake to reduce customs duties to 10%. This type of international trade benefits the development of Latin America. NAFTA is the largest free trade agreement in the world. In any case, this is a sector in which integration under the regional agreement system has created significant trade flows that play an important role in countries` economic activities. Argentina specializes in the export of foodstuffs (64% of the total turnover of these products within the block) and Brazil in producers of agricultural origin (56%). Argentina is also the leader in oil and fat exports (63%); and Brazil for beverages and tobacco (44%). Today, 90% of wine exports come from Argentina and 71% of beer exports come from Brazil. Since 1991, Mercosur has increased intra-bloc trade from $5.1 billion to $58.2 billion, while world trade growth has been only five times higher. – No HTML tag allows – Website URLs are only displayed as text – lines and paragraphs stop automatically – Annexes, images or tables are not allowed From Mercosur to the Pacific Alliance, international trade benefits the development of Latin America in a very significant way.

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