Enterprise For The Americas Initiative - EAI

AAA

DEFINITION of 'Enterprise For The Americas Initiative - EAI'

A program to boost hemispheric trade unveiled by U.S. President George H. W. Bush on June 27, 1990. The primary objectives of the program were to establish a free-trade zone stretching across North and South America, expand investment and provide debt relief for Latin American and Caribbean countries.

INVESTOPEDIA EXPLAINS 'Enterprise For The Americas Initiative - EAI'

The EAI had three components:


1. The negotiation of a number of expected free-trade agreements, of which the North American Free Trade Agreement (NAFTA) was the first.


2. A loan program and a proposed five-year US$1.5 billion multilateral investment fund to be administered by the Inter-American Development Bank.


3. A program of conditional official-debt relief, with interest payments on the reduced debt to be paid in local currency and used to finance environmental projects in Latin America and the Caribbean.

RELATED TERMS
  1. North American Free Trade Agreement ...

    A regulation implemented on Jan. 1, 1994, that decreased and ...
  2. Free Trade Area

    A group of countries that invoke little or no price control in ...
  3. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  4. Trade Liberalization

    The removal or reduction of restrictions or barriers on the free ...
  5. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  6. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. Globalization: Progress Or Profiteering?
    Economics

    Globalization: Progress Or Profiteering?

  3. NAFTA's Winners And Losers
    Economics

    NAFTA's Winners And Losers

  4. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center