The agreement would have brought together a trade zone for about 972 billion people, which would generate $25.4 trillion in gross domestic product from 2014. Like NAFTA, it would have given the United States a comparative advantage in terms of world trade with the European Union and China`s many trade agreements in the Pacific region. After a year of work in 2017 with the signing of CETA between the EU and Canada, many bilateral negotiations are on the agenda this year. These include concluding trade negotiations with Mexico and Mercosur (Argentina, Brazil, Paraguay and Uruguay) and finally ratifying important trade agreements with Japan, Singapore and Vietnam. After NAFTA was signed, the United States hosted the U.S. Summit in Miami in December 1994. At the time, most American countries wanted to use an agreement that would help the region compete with the EU. Following the outcome of the meeting, it was agreed to continue close cooperation, including the agreement to implement the agreement. That is why the dialogue on deepening cooperation between customs services has already been initiated; trade dialogue is established in accordance with the agreement, while its working format has now been agreed. The free trade agreement would have been much smaller than other regional trade agreements such as NAFTA.
It would have been relegated to the background by the Transatlantic Trade and Investment Partnership between the United States and the European Union. It would also have been smaller than the Trans-Pacific Partnership that the Trump administration abandoned. If approved, the free trade agreement would have been chartered among all of these countries. But many of them have signed bilateral trade agreements or investment agreements with the United States, which are outlined below with links to those agreements. This concept, known as « bolivarism, » was proposed by Venezuelan President Hugo Chavez. It was strongly supported by Bolivian President Evo Morales and Argentine President Nestor Kirchner. It received moderate support from Brazilian President Luiz Inacio Lula da Silva. These countries took the lead in the creation of the Mercosur Trade Pact and the Banco del Sur Development Bank.
After 16 years of entry into force, on 7 June 2010, the two countries decided to dissolve ACE 31 and replace it with a new complementary economic agreement (ECA 66) that would maintain the free movement of goods without changing the preferential tariff treatment agreed in the free trade area denounced. The new agreement came into force on June 7, 2010. Growing uncertainty over US trade policy is prompting the European Union and its trading partners to accelerate the conclusion of negotiations on free trade agreements in October 2014. This last point became necessary following the Court of Justice`s decision in May 2017 that any trade agreement including an out-of-court system for the settlement of disputes and non-direct foreign investment is a « mixed agreement » that must be ratified by the 38 EU national and regional authorities.