The FTAA and Hemispheric Integration
Summary
This policy brief, released in April 2001, proposes a 'triple-win strategy' to integrate trade liberalisation, environmental protection, and social development within the Free Trade Area of the Americas (FTAA) process. It argues for moving away from a sanctions-based approach toward a cooperation-driven model to overcome protectionist fears and civil society opposition.
Key insights
- The document proposes a three-pillar strategy to align trade and sustainability in the Americas: incorporating environmental provisions into the FTAA, strengthening hemispheric environmental cooperation, and establishing a High Level Hemispheric Experts Group on Trade and Sustainability for dialogue with industry and civil society.
- Negotiations for the FTAA have been hindered by fears, particularly in Latin America, that environmental standards would be used by the United States and Canada as justifications for protectionism or would reduce the competitiveness of businesses in the Caribbean and Latin America.
- The authors argue that existing agreements like NAFTA and MERCOSUR demonstrate that environmental provisions do not necessarily limit trade; for instance, NAFTA intra-regional exports grew 92% between 1993 and 1999, and intra-Mercosur trade increased fourfold since 1990.
- To make the FTAA sustainable, the brief recommends specific general provisions, including a preamble mentioning sustainable development, the discouragement of trade sanctions in favor of fines, and the establishment of the paramountcy of trade measures adopted under specific Multilateral Environmental Agreements such as CITES, the Montreal Protocol, and the Basel Convention.
- The brief suggests specific technical additions to the FTAA negotiating groups, such as a 'pollution havens clause' to prevent the lowering of environmental standards to attract investment and the removal of environmentally damaging subsidies in the agricultural and fisheries sectors.
- The document identifies a need for a new 'Americas Ecological Accord' (AEA) to serve as a legal and policy coordination body to address three primary environmental pressures: deforestation, the deterioration of the urban environment, and increased vulnerability to natural events.
- The authors recommend the creation of a High Level Experts Group by 2002 to act as an independent bridging mechanism for policy dialogue, involving institutions such as the OAS, ECLAC, the IDB, and the FTAA Secretariat.
Cite the original document
- APA
- International Institute for Sustainable Development (n.d.). The FTAA and Hemispheric Integration. https://www.iisd.org/system/files/publications/trade_qc_policy_en.pdf
- Chicago
- International Institute for Sustainable Development. The FTAA and Hemispheric Integration. n.d. https://www.iisd.org/system/files/publications/trade_qc_policy_en.pdf.
- Wikipedia
- {{cite report |author=International Institute for Sustainable Development |title=The FTAA and Hemispheric Integration |url=https://www.iisd.org/system/files/publications/trade_qc_policy_en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{internationalinstituteforsustainabledevelopmentndftaa, author = {{International Institute for Sustainable Development}}, title = {{The FTAA and Hemispheric Integration }}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/trade_qc_policy_en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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