A History of the FTAA

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1 A History of the FTAA

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3 A History of the FTAA From Hegemony to Fragmentation in the Americas Marcel Nelson

4 A HISTORY OF THE FTAA Copyright Marcel Nelson, Softcover reprint of the hardcover 1st edition All rights reserved. First published in 2015 by PALGRAVE MACMILLAN in the United States a division of St. Martin s Press LLC, 175 Fifth Avenue, New York, NY Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN ISBN (ebook) DOI / Library of Congress Cataloging- in- Publication Data Nelson, Marcel. A history of the FTAA : from hegemony to fragmentation in the Americas / Marcel Nelson. pages cm (hardback) 1. Free Trade Area of the Americas (Organization) History 2. Neoliberalism United States History 3. United States Foreign relations Latin America History 4. Latin America Foreign relations United States History I. Title. HF1776.N '.917 dc A catalogue record of the book is available from the British Library. Design by Scribe Inc. First edition: February

5 To Yelena, Ronald, Jeannine, Céline, and Abbie

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7 Contents Acknowledgments Abbreviations ix xi Part I: Theoretical Framework 1 Introduction 3 1 Gramsci, Hegemony, and Global Governance 27 Part II: The Evolution of the FTAA Negotiations 61 2 The FTAA Negotiations: Context and History 63 Part III: Case Studies Venezuela and the Evolution of the FTAA Brazil and the FTAA Negotiations 147 Part IV: Regionalism after the FTAA Regionalism in the Americas after the FTAA 183 Conclusion 201 Notes 209 Bibliography 247 Index 267

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9 Acknowledgments First and foremost, I would like to thank my doctoral supervisor, Dr. Abigail Bakan, for her guidance and support. Without her encouragement, this book would have never become a reality. I am indebted to all the professors that I have encountered over the years at the University of Ottawa, York University, and Queen s University, who have all, in their own way, contributed to my love of knowledge. I would like to single out Dr. Grant Amyot, Dr. Eunice Sahle, and Dr. Steve Ellner, who have particularly been helpful these last few years. I am grateful to the purveyors of the R. S. McLaughlin Fellowship, the Timothy C. S. Franks Research Travel Fund Award, and the Graduate Dean s Travel Grant for Doctoral Field Research at Queen s University, whose financial contributions allowed me to conduct field research. I want to thank Angela Pietrobon for having reviewed an early version of this document and everyone at Palgrave Macmillan who helped during the process of finalizing this book. Further, I want to thank my friends and family, Rick Ficek, Cathy Thomson, Simon Kiss, Kelly Foyle, Rob Lawson, Robert and Cathy Leblanc, Andrew Stevens, Donald Sackey, Christopher Canning, Laura McGavin, Mira Bachvarova, Nick Hardy, Dan Wolski, Paul Kellogg, Dale Gago, Mohammed Ali Kessentini, Dan Pfeffer, Gail Adler, Frank and Katarina Molnar, and Élisabeth and Serge Morneau, for their support and, in some cases, willingness to engage in interminable debates throughout the years. Finally, I would like to thank my father, Ronald, my mother, Jeannine, and my sister, Céline for their support and whose dedication to education marked me for life. Finally, I would like to end by expressing my gratitude to my wife, Yelena, whose love and encouragement made this process a brighter one.

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11 Abbreviations AD Acción Democrática, Democratic Action (Venezuela) AFL- CIO American Federation of Labour and Congress of Industrial Organizations ALADI Asociación Latinoamericana de Integración, Latin American Association for Integration ALALC Asociación Latinoamericana de Libre Comercio, Latin American Free Trade Association ALBA Allianza Bolivariana para los Pueblos de Nuestra América, Bolivarian Alliance for the Peoples of Our America ARENA Aliança Renovadora Nacional, Alliance for National Renovation (Brazil) BNDES Banco Nacional de Desenvolvimento Economico e Social, National Bank for National and Social Development BRIC Brazil, Russia, India, and China CA Communidad Andina, Andean Community CACM Central American Common Market CAMEX Câmara de Comércio Exterior, Chamber of Foreign Trade (Brazil) CARICOM Caribbean Community CGSE Consultative Group on Smaller Economies CIA Central Intelligence Agency CONINDUSTRIA Confederación Venezolana de Industriales, Venezuelan Industrial Confederation CNI Confederación Nacional de la Industria, National Confederation of Industry (Brazil) CONEX Consultative Council of the Private Sector (Brazil) CONINDUSTRIA Confederación Venezolana de Industriales, Venezuelan Industrial Confederation

12 xii COPEI CTV EAI ECLAC EU FARC FCV FEDECAMARAS FIESP FTA FTAA GATT G3 HCP HSA IBSA IDB IESA IFI IIRSA IMF ISI ITP MAI MAS MDIC Abbreviations Partido Social Cristiano de Venezuela, Social Christian Party of Venezuela Confederacion de Trabajadores de Venezuela, Venezuelan Workers Confederation Enterprise for the Americas Initiative Economic Commission for Latin American and the Caribbean European Union Fuerzas Armadas Revolucionarias de Colombia, Revolutionary Armed Forces of Colombia Federación Campesino de Venezuela, Peasant Federation of Venezuela Federación de Cámaras y Asociaciones de Comercio y Producción de Venezuela, Federation of Chambers of Commerce and Industry of Venezuela Federación de Industrias del Estado de Sao Paulo, Industrial Federation of the State of Sao Paulo free trade agreement Free Trade Area of the Americas General Agreement on Tariffs and Trade Group of Three (Venezuela, Colombia, and Mexico) Hemispheric Cooperation Program Hemispheric Social Alliance India, Brazil, and South Africa Inter- American Development Bank Insituto de Estudios Superiores de Administracion, Institute of Advanced Studies in Administration (Venezuela) International Financial Institution Initiative for the Integration of the Regional Infrastructure of South America International Monetary Fund import substitution industrialization interim trade program Multilateral Agreement on Investment Movimiento al Socialismo, Movement for Socialism (Venezuela) Ministério do Desenvolvimento, Indústria e Comércio Exterior, Ministry of Industry and Foreign Trade (Brazil)

13 Abbreviations xiii MERCOSUR MFN MIF MPC MVR NAFTA NATO NEC OAS OPA OPEC ORIT PCV PDVSA PICE PSUV PT REBRIP SADC SCF SENALCA SOC Mercado Común del Sur, Southern Common Market most favored nation multilateral investment fund Ministerio de la Producción y el Comercio, Ministry of Production and Commerce (Venezuela) Movimiento V [Quinta] República, Fifth Republic Movement (Venezuela) North American Free Trade Agreement North Atlantic Treaty Organization National Economic Council (United States) Organization of American States Operaçao Pan Americana, Operation Pan- America (Brazil) Organization of Petroleum Exporting States Organización Regional Interamericana de Trabajadores, Inter- American Regional Organization of Workers Partido Comunista de Venezuela, Communist Party of Venezuela Petroleos de Venezuela, S.A.; Petroleum of Venezuela Programa de Integraçao e Cooperação Econômica, Program for Economic Integration and Cooperation (Brazil and Argentina) Partido Socialista Unido de Venezuela, United Socialist Party of Venezuela Partido dos Trabalhadores, Workers Party (Brazil) Red Brasileña por la Integración de los Pueblos, Brazilian Network for the Integration of the Peoples South American Defense Council Structural Convergence Fund Fondo de Convergencia Estructural, Structural Convergence Fund Secrataria Nacional de Coordenação dos Assuntos relativos à ALCA, National Secretariat for the Coordination of Matters Pertaining to the FTAA (Brazil) Committee of Government Representatives on the Participation of Civil Society

14 xiv SUCRE TCP TNC TPA USAID UCV UNASUR URD USB USTR WTO Abbreviations Sistema Único de Compensación Regional, Unified System for Regional Compensation Tratado de Comercio de los Pueblos, Peoples Trade Treaty Trade Negotiations Committee trade promotion authority United States Agency for International Development Universidad Central de Venezuela, Central University of Venezuela Unión de Naciones Suramericanas, Union of South American Nations Unión Republicana Democrática, Republican Democratic Union (Venezuela) Universidad Simon Bolivar, Simon Bolivar University (Venezuela) United States Trade Representative World Trade Organization

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