At the Summit of the Americas last month in Quebec City, the U.S. administration of President George W. Bush continued to push for a vast Free Trade Area of the Americas. Efforts to speed up the negotiations were defeated prior to the summit, in part because of the objections of countries, like Brazil, that feel the United States is trying to exert too much economic influence. Similar to the North American Free Trade Agreement between Canada, Mexico and the United States, the FTAA would eliminate most trade barriers in the western hemisphere, creating the world's largest trading block, with 800 million people from the Arctic to Argentina.
Brazil has the largest economy in South America, by far.
Under President Fernando Henrique Cardoso, Brazilian trade officials have indicated several objections, not the least being that the Bush administration will be unable to push true free trade through the U.S. Congress. This concern may not apply as much to furniture, where labor is the primary value-added in most imports. Nonetheless, the growing stream of Brazilian furniture exports to the United States could be impacted by the FTAA negotiations.