章 166: League of American Nations

The charter for the League of American Nations consisted of two important parts that led to some of the founding nations to sign the document. The first part (from Article 1 to 3) consisted of an economic treaty that tied the nations together. Under the terms of the LAN charter, a common market was developed between the member states, creating the freedom of movement of factors of production (capital and labor) and enterprises, and promoting free trade areas with no tariffs.* Additionally, the LAN charter affirmed America's commitment to the League and granted economic aid to its member states. These terms allowed companies and workers in the LAN to move between the member states freely and formed incentives for local investors to support companies and projects elsewhere. After the ratification of the treaty, the United States designated Sovtaj and New Orleans as the free trade areas, while other nations followed with one or two specific regions/cities as their free trade zones. This immediately led to American companies expanding their operations into the LAN members and developing the economies of said nations (mainly in Mexico and Central America). Haiti, which already had close economic ties with the United States and its close proximity to a hostile power (see The French Empire) saw little economic change after the ratification of the charter. However, the other members of the LAN benefitted extensively from the economic pact signed between them and the United States. The Republic of Colombia, which relied heavily on its exports of cocoa for its economy, found eager buyers in the United States, which allowed them to recover economically after the destructive Venezuelan Revolution and the First and Second Invasions of New Granada. It also bought time for the nation to develop its agricultural and industrial sectors, with the help of American investors and experts. Similarly, Mexico managed to recover from the fallout of its own independence war (the Mexican Independence War) rapidly due to American investments and aid (though, at the cost of its own domestic industry for the first two decades). After railroads from the American East Coast started to move westward, Mexico saw the development of its own railroad industry due to American efforts. This, in turn, connected the two nations closer than ever...