New South American Union Formed. Twelve countries signed May 23 in Brazil a treaty establishing a new Union of South American Nations. The so-called Unasur is modeled on the European Union and designed to give the region more clout on the world economic and political stage. But some observers say that given the varying ideological leanings and development levels of the participating countries, and the fact that they were initially unable to agree to develop joint customs and defense policies, the new bloc is likely to have little practical effect. Press reports indicate that the agreement, which must still be ratified by each signatory, envisions regional integration on environmental, energy, transportation and other issues.
Australia, Chile Conclude FTA Negotiations. Australia and Chile announced May 27 that they have concluded negotiations on a bilateral free trade agreement. The FTA is slated to remove tariffs on 97 percent of all two-way trade in goods when it takes effect Jan. 1, 2009, and 100 percent by 2015. Trade Minister Simon Crean called the agreement, which also includes provisions on services and investment, the most comprehensive FTA Australia has ever signed.
World Trade/Interactive
