Over the past year, the United States and Canada, who
have already formed a free trade agreement (the CFT A), have
begun negotiations with Mexico to create a North America
Free Trade Area (NAFTA). The European Community (EC) is
pushing ahead with plans to harmonize its internal market by
January 1, 1993, and joined with the 7 countries of the European
Free Trade Association in October 1991 to create the
European Economic Area. Australia and New Zealand have
further integrated the ties between their economies under the
Closer Economic Relations (CER) agreement. Many Latin
American countries are aggressively pursuing regional economic
integration, with an eye on eventually forming free
trade areas with the United States. In January of this year, the
6-member Association of Southeast Asian Nations (ASEAN),
until now a primarily political grouping, announced their
intention to form a free trade area.
At the same time, the Uruguay Round being conducted
under the auspices of the General Agreement on Tariffs and
Trade (GATT) has experienced great difficulties and delays. It
nearly collapsed in December 1990 largely over the question
of agriculture and was stalled most of 1991 and into 1992.
Such developments lead to this question, "Do regional trading
arrangements have a positive effect on liberalizing the
trading environment for agricultural products?" Some experts
and observers respond yes; others say no. Here Goodloe will
summarize the pro arguments and Raney will counter with the
con, leaving you to reach your own conclusion
