Common Market For Latin America

Press, Volume XCVI, Issue 28399, 4 October 1957, Page 12

Common Market For Latin America

The publicity given to the European Common Market and Free Trade Area and to the suggestion of a BritishCanadian free trade area has diverted attention from another

common market proposal that may have far-reashing effects. The endorsement given at the September conference in Buenos Aires of the “ inter-American ” countries—Latin America and North America—of a common market plan for Latin America was the climax to a year of preparation. The Latin American countries were perturbed by the threat that the European Common Market might reduce their trade with Europe and divert some of it tq European colonies in Africa. For instance, the European demand for coffee could be channelled more towards Africa and less towards Latin America.

This threat to the individual trade of countries in Latin America was bad enough, but there were other and more compelling reasons for the decision to set up a common market. As communications improve, trade and finance in the countries in a single geographic area tend to become interwoven. In Latin America there are now 20 separate entities—from huge countries such as Brazil and Argentina

down to such small areas as Colombia. Each pursuing a separate trade policy, with barriers against the others, has been a brake on expansion and development. Economists in the United States have ascribed the remarkable development of their country as much to the early decision of the individual states to abolish customs and tariff barriers throughout the country as to any other single factor; and this example must have played a big part in the decision taken at Buenos Aires. The advantages of economic production for one huge consumers’ market are obvious. Even limited progress towards this goal would strengthen greatly the economic structure of all Latin America. Obviously, in view of political rivalries, of local jealousies, and of the conflicts inevitable between small dictatorships, a common market will not easily or quickly be established. The endorsement of the plan by the Buenos Aires conference is at least a good start, in a project which could bring economic stability and ' progress to a potentially rich area. Everyone would benefit if development was based on the needs of the whole continent rather than on individual, and often conflicting, plans.