The Americas

Part 6

Trade and Energy

Trade

Millions of Americans and

Canadians work in

manufacturing. It is not as

common an occupation in Latin America.

Latin America is loaded with a wide variety of natural resources. Larger countries such as Mexico, Brazil, and Argentina have been successful in using their natural resources to better their economies, and the lives of their citizens. Venezuela has benefitted

from its large oil deposits, and Chile is the world’s largest producer of copper. The countries of Central America are not as

blessed with natural resources, and must rely more upon agriculture for economic

success.

The United States and Canada are quite INTERDEPENDENT on each other in the products they trade. In fact, each country is the other’s largest trading partner.

Historically, many countries had protective TARIFFS, or taxes on foreign goods that tried to encourage people to support buying products from their own country.

That began to change in the late 20th century as many countries merged into a more global economy.

In 1993, the U.S. and Canada, along with Mexico, signed NAFTA (North American Free Trade Agreement).

NAFTA worked to eliminate trade barriers and restrictions. It has worked in some areas, but some people feel American workers have been hurt. Companies have moved to Mexico where labor costs are cheaper. Plus, there is a fear that cheap products might flood the market, causing people to not buy American-made products.

There are also movements to extend FREE TRADE (trade with low, or no taxes) throughout all of the Western Hemisphere.

Some nations have been able to attract investors from countries like the U.S. Cheaper labor is an

attraction for some corporations.

Many Americans are against the

globalization of the economy.

-Millions of

manufacturing jobs have been lost in the U. S. the last

30 years.

CAFTA or Central America Free Trade Agreement, was implemented in the 2000s, as a trade agreement

between the U. S. and 5 Central American nations. The Dominican Republic also eventually joined.

CARICOM The Caribbean Community

This is an economic pact or agreement

between nations of the Caribbean

region.

The 12 Members of the Union of South American Nations

In 2008, an economic pact between most nations in South America formed, called the UNION OF SOUTH AMERICAN NATIONS.

One of the goals is to create a single market for trade goods and the elimination of TARIFFS.

They may even merge into using a single currency, that would be accepted across international borders.

They would also like to improve infrastructure, and create easier travel between member states.

Minerals and Fossil Fuels

The Americas have large quantities and varieties of minerals.

There are also large deposits of fossil fuels, including coal, oil, and natural gas.

These resources helped the U. S. and Canada industrialize rapidly.

The nations of Latin America are all at different stages of industrialization. Some like Brazil are advancing, while others have hardly started.

The U. S. is currently the

largest energy user in the world. We provide much

of our own energy, except in

the area of oil where our

consumption heavily outweighs

our production.

Oil deposits are found in many

countries of the

Americas.

Oil may be obtained by drilling from the land, or sea floor.

Some people favor expanding our oil drilling on our own territory and in the

continental shelf off the coast. Environmentalists

fear the damage from potential spills/accidents, or

the disruption of animal habitats.

The U. S. and Canada have some of the world’s biggest coal deposits. The burning of coal accounts for about

half of all electricity produced in the U. S.

Surface coal mining

Underground coal mining

Natural Gas Deposits

Natural Gas Wells

HydroelectricPower

-Hoover Dam

Flowing water goes through the dams,

turning large turbines, that create electricity.

Itaipu Dam, on the Parana River between Brazil and Paraguay, has the highest

electric output in the world.

“Fish Ladders” like this one at Bonneville Dam on the

Columbia River between Oregon and Washington,

allow fish like the salmon to make it around the dams to travel back to their spawning

areas.

Nuclear Power It supplies hundreds of millions of people around the world with energy. However, there are some

concerns about its potential environmental impact, especially in places where natural

disasters are more likely to happen.