Compensatory Regional Policies: Within the Framework of Economic Integration: Reflections on the ALCA, the TLC and the Mercosur

• Published in: Economía, sociedad y territorio Vol. 8; no. 26; pp. 357 - 379
• Main Authors: Briceno-Ruiz, Jose, Ruiz-Uzcategui, Dyanna Maria
• Format: Journal Article
• Language: Spanish
• Published: 01-01-2008
• Subjects: Economic Policy; Finance; Regional Development; Trade; Western Society
• ISSN: 1405-8421

The main premise of this paper is related to the fact that the Free Trade Area of the Americas (FTAA or ALCA in Spanish), as an ambitious project of commercial openness, will have an enormous impact on the re-localization of productive activities. This will therefore affect the less developed regions in the member countries. That is why, as it has been demonstrated by the experience in the European Union, it is necessary to establish compensatory policies through the creation of Regional Funds. These will allow some regions to alleviate the impact of the commercial aperture. Taking into account the way in which this issue had been addressed during the FTAA negotiations, this paper examines the convenience of establishing or not a free trading zone in the Western Hemisphere. Graphs, References. Adapted from the source document.