7.4. Prospects for the integration development of Latin America

Integration processes in Latin America related  associated with some new phenomena in the area. The fact that in the first half of the 90's prevailing tendency to expand cooperation at sub-regional associations - (MERCOSUR - Andean Pact). It was assumed that in the second half of 90's special attention will be given to measures aimed at integrating the existing blocks to create a unified free trade zone within the entire South American continent.

In any case, Brazil has advocated in 1993 the initiative to create a South American free trade zone. Moreover, she suggested, as the strengthening position MERCOSUR, to start negotiations with other countries to eliminate tariffs and nontariff bar - interiors on the continent.

Given the geopolitical theories of modern world economic processes, the Brazilian model of integration of the Western Hemisphere based on the principles of "open regionalism" and "concentric circles". According to the logic of this approach, the core of the integration process is MERCOSUR, first Integral circle form, the principle of equality, neighboring countries - Chile, Bolivia, Suriname, Guyana and other ment on the third - about  union with the Andean group on the basis of the South American common market and finally, at the final stage - at connection with NAFTA in the Americas Free Trade Association - ALCA.

For Brazil, Latin American integration - not an end in itself and not simply the pursuit of economic diplomacy. For her, integration with neighboring countries is, above all, an important means of development. Obviously, the result of the Brazilian initiatives on signing agreements on trade tariffs on South American partners should be enhancing trade between the regions of the country and Latin American markets. Export growth leads to job creation, increased incomes, and consequently - to improve material well-being. And all this - based on a combination of regional and national interests. And finally, MERCOSUR - a tool for becoming its undisputed leader of Brazil as a world power.

Since the mid 90's century. Latin American countries involved in the intercontinental integration process in the Western Hemisphere. The impetus for it was the "Summit of the Americas, 94 in Miami, held in December 1994 on the initiative of U.S. President Bill Clinton. The Summit, the Heads of States and Governments of 34 countries, the Western Hemisphere unanimously approved the proposal on the establishment of the United States before 2005, the prerequisites for forming a Free Trade Area Americas - ALCA *. They spoke about the possibility of a single economic space in the 42 million km2, a population of about 850 million citizens, consumers, the aggregate GDP exceeds $ 10.5 trillion. And turnover of about $ 2.4 trillion.

* ALCA=FTAA

In November 2005 in the Argentine resort town of Mar del Plata hosted the IV Summit of Heads of States and Governments of 34 countries of the Western Hemisphere - Summit of the Americas - 2005. The main considered the future of FTAA-Free Trade Zone Americas. However the project from January 2006 to come into force on pinned hopes that U.S. President George W. Bush.

Leaders of five Latin American countries, the summit - blocked a positive decision. Venezuela, Argentina, Brazil, Paraguay and Uruguay motivate their negative attitude that, first, during the 1994 does not

* ALCA = FTAA

created the preconditions for transforming relations in the regime of free trade in the hemisphere-wide, and secondly, the U.S. does not have undertaken serious commitments on opening its own market for producers of agricultural exporting countries of Central and South America.

Following the 2005 Summit of the Americas Chapter 29 countries signed a communiqué on the need to compromise to continue negotiations on FTAA. Leaders of five opponents abstained. The issue of free trade zone from Alaska to Tierra del Fuego left open indefinitely.

Control questions and practical tasks:

1. What features the Latin American integration process can be characterized?

2. EKLAK role in the development of international economic integration in Latin America.

3. Mechanism (model) of economic integration Andean Pact.

4. Provide economic characteristics of the integration union MERCOSUR.

5. The Chilean model of economic integration.

6. The problems of international economic integration in Central America.

7. Caribbean in the Latin American integration process.

8. Historical perspective of Latin American integration process.