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. Nordic Model

    The social welfare and economic systems adopted by Nordic countries.
RELATED FAQS
  1. What does a positive capital account balance mean?

    A positive capital account balance indicates that more money is flowing into, rather than out of, a country. A country's ... Read Full Answer >>
  2. What does a negative balance in the capital account mean?

    A negative capital account balance indicates a predominant money flow outbound from a country to other countries. The implication ... Read Full Answer >>
  3. How does a capital account illustrate the strength of investment markets for a country?

    A nation's capital account can be a major indicator of how much interest the nation generates among foreign investors. A ... Read Full Answer >>
  4. Why would a company have a subsidiary in a different sector from its main source ...

    A company would have a subsidiary in a different sector from its main source of business if it is looking to increase its ... Read Full Answer >>
  5. What is the difference between cyclical and non-cyclical stocks?

    The difference between a cyclical stock and a non-cyclical stock is that a cyclical stock is highly correlated with movements ... Read Full Answer >>
  6. What are the benefits of investing in a cyclical stock?

    Cyclical stocks tend to be highly correlated with the overall business cycle, so an investor can invest in a cyclical stock ... Read Full Answer >>
Related Articles
  1. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  2. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  3. Economics

    What Is The World Trade Organization?

    The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it?
  4. Economics

    NAFTA's Winners And Losers

    Read on to find out who this free-trade agreement helped, and who it hurt.
  5. Economics

    Countries Most Affected By A Strong U.S. Dollar

    The U.S. dollar is still the most important currency in the world. It's used for trade, foreign reserves, and as a substitute for the gold standard. As the U.S. dollar continues to grow stronger, ...
  6. Economics

    How Is The GDP Of India Calculated?

    India is a front-runner among developing economies. Investopedia explains how India calculates its GDP, an indicator of economic health and performance.
  7. Stock Analysis

    Today's Top ETFs: Worth a Bet or Should You Pass?

    ETFs can be profitable and dangerous. Here's a list of today's most popular funds and what you should watch about them.
  8. Economics

    What is Productivity?

    Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs.
  9. Economics

    Who Produces The World's Food

    We look at the top producers of the world's food basket.
  10. Investing

    How To Play Potential Market Opportunities In 2Q?

    The first quarter played out as expected, but there were a few surprises, including a strengthening dollar and how far interest rates have fallen.

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Ghosting

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

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  4. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  5. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
Trading Center