Economic motivations are usually the main driver of concluding free trade agreements between countries, but there are other reasons why countries conclude free trade agreements, including political and security factors. One of Mexico`s main motivations for its unilateral trade liberalization efforts in the late 1980s and early 1990s was the improvement of economic conditions in the country, which policymakers hoped would boost investor confidence, attract more foreign investment and create jobs. Mexico could also have other reasons to enter into free trade agreements, such as. B the extension of market access and the reduction of its dependence on the United States as an export market. The slow pace of multilateral trade negotiations can also contribute to increasing global interest in bilateral and regional free trade agreements within the framework of the World Trade Organization (WTO). Some countries may view minor trade agreements as “building blocks” of multilateral agreements. The Asahi Shimbun, “Japan: Free Trade with Mexico,” March 12, 2004. The Alliance`s approach to trade integration is often seen as a pragmatic path to deepening economic relations. It is more outward-looking than other regional initiatives such as the Common Market of the South (Mercosur). Another distinguishing feature is that the four Member States share similar economic and political ideals and are moving quickly to achieve their goals.
Member States have signed various agreements to share their institutions or embassies and consulates in order to pursue the objectives of the integration process. In February 2014, the presidents of the Pacific Alliance countries signed the additional protocol to the framework agreement, which immediately eliminated 92% of tariffs between members. Some analysts see the Pacific Alliance as a potential rival to Mercosur and have found that it could put pressure on other Latin American countries to pursue a policy of market opening. The alliance is broader than free trade agreements, as the alliance involves the free movement of people and includes measures to integrate Member States` stock markets. While supporting the establishment of the EEC, other European countries feared that their economic interests would suffer, as their exports to these six countries would be discriminated against in relation to the sales of EEC members. As a result, the United Kingdom, Austria, Denmark, Norway, Portugal, Sweden and Switzerland launched the European Free Trade Area in 1960, which would eliminate trade tariffs between them and allow each to maintain its own external right. Roosevelt`s foreign minister, Cordell Hull, found a brilliant solution. Working with Congress, he drafted legislation — the Reciprocal Trade Agreements Act (RTAA) — to give the president the power to negotiate trade agreements that would shrink the United States.