The “new regionalism” and the Free Trade Area of the Americas: A less benevolent view

This paper examines the pros and cons of the “new regionalism”, taking as a landmark the negotiations for a Free Trade Area of the Americas (FTAA). It summarizes the main features of the “new regionalism” and reviews some of the challenges and opportunities opened up by North-South preferential trade agreements (a category that includes many of the new vintage of such agreements). It underlines the role of domestic policies as a complement to trade liberalization, an aspect generally overlooked in the debate about trade negotiations and preferential trade agreements. It reviews the record of the FTAA negotiations, emphasizing recent trends and prospects. Lastly, it summarizes the main points raised and emphasizes the problematic features of the FTAA that is starting to emerge after a decade of negotiations.