The FTAA faces obstacles in both North and South America. Clinton sought to dampen suspicions in the region that the U.S. wanted to drive a wedge between the four nations, Brazil, Argentina, Paraguay and Uruguay, that form the Mercosur trade organization. Brazil, however, has urged its neighbors to proceed with caution in the free trade area, fearing that any further freeing up of trade in the short term, which is already struggling to cope with rising trade deficits, could devastate its economy.
Brazil is the largest economy in Latin America.
Increased demand for U.S. products is being fueled in part by generally lower tariffs and reduced non-tariff barriers, as well as the strength of the Brazilian currency relative to the dollar. In addition, the Brazilian government's emphasis on privatization, deregulation, and the removal of impediments to competition has increased economic opportunities for the private sector, and positioned Brazil to be one of the strongest commercial partners for the United States, according to the Commerce Department. Sectors offering great promise for U.S. firms include telecommunications, computer hardware and peripherals, electric power, pollution control equipment and transportation equipment. This page was last modified on 11 April, 2000. Please refer all comments ANSI Online .