In Section II following, we present a brief description of the main features and data of the
Michigan Model. In Section III, we present brief background information on the FTAA and U.S.
FTAA negotiating proposals together with presentation of the modeling results of the potential
economic effects of the FTAA on the economic welfare, trade, output, and employment for the
United States, Canada, Chile, Mexico, and aggregates of 19 countries in Central America and the
Caribbean (excluding Cuba) and 11 countries in South America (excluding Chile). In Section IV,
we provide a broader perspective on the FTAA that takes into account the effects of the unilateral
removal of trade barriers by the aforementioned FTAA countries/regions and the effects of global
free trade in which all countries/regions covered in the model are assumed to remove their