U.S. Begins Talks for Trade Pact With Central Americans

[Joe Smith]

Here's a rambling set of questions that come immediately to mind... What is the liklihood that Mercusor could emerge as a viable alternative project to the FTAA?  This seems like a distinct possiblity since (a) Lula was elected in Brazil (Mercusor's largest economy) on the back of rising anti-FTAA / anti-neoliberal sentiment, and, (b) the Mercusor pact countries recently agreed to allow free movement of labor, something the FTAA does not permit.  Would a EU free trade pact undermine Mercusor by essentially dividing LA into economic spheres (one dominated by the US the other by the EU) or would such an agreement give the Mercusor countries more independence from US imperialism?  Or both?

joe

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"And the initiative intensifies competition between Washington and the
European Union for access to the Latin American market, where Europe is
the second-largest trading partner after the United States. European
officials in Brussels have taken note of Mr. Zoellick's Latin American
push since Congress granted trade promotion authority ·once called fast
track ·to President Bush in August. And now the Europeans are working to
complete negotiations for a similar free trade agreement with Mercosur,
the world's third-largest trade group, comprising Argentina, Brazil,
Paraguay and Uruguay as well as Bolivia and Chile as associate members.

"It is obvious we are in stiff competition right now," a European
representative in Washington said. "Our agreement with Mexico came after
Nafta, and we don't want to lose out again, especially not with Mercosur."