At the end of Seventh Ministerial Meeting of the Free Trade Area of Americas in Quito, Ecuador, trade ministers from the Western Hemisphere's 34 democratically governed nations, have established "a good framework" for creating the FTAA, said the U.S. Department of State.
But, leaders from Latin America and the Caribbean called on the United States to drop agricultural subsidies and import tariffs as part of the hemisphere-wide free trade agreement.
Minister of Trade and Industry Leslie Miller led the Bahamas' delegation, in the process of negotiation and discussion towards the establishment of a free trade zone in 2005 throughout the Americas, excluding Cuba.
The Bahamas was among the 34 democratic nations at the first Summit of the Americas in 1994,during which leaders agreed to pursue the establishment of FTAA. And on November 1, 2002, the trade ministers from these countries convened in Quito, Ecuador, to continue their efforts to create a hemispheric free trade zone by 2005 that will comprise more than 800 million consumers.
At the conclusion of the Quito ministerial, the trade ministers released a 40-point declaration that outlines the objectives and importance of the FTAA. "We consider that the establishment of the FTAA, through increased trade flows, trade liberalisation and investment in the hemisphere, shall contribute to growth, job creation, higher standards of living, greater opportunities and poverty reduction in the hemisphere."
The declaration also establishes guidelines and for the ongoing negotiations and provides "a good framework to go forward," according to U.S. Trade Representative Robert Zoellick.
The ministers also agreed to launch a Hemispheric Cooperation Programme (HCP) as part of the FTAA negotiating process. The HCP is aimed at strengthening the ability of the region's smaller and less developed economies to participate in FTAA talks and benefit from hemispheric trade.
As the declaration explains, "The programme is intended to strengthen the capacities of those countries seeking assistance to participate in the negotiations, implement their trade commitments, and address the challenges and maximise the benefits of hemispheric integration."
The U.S. trade representative said that he hoped the HCP would serve as a model for other trade negotiations, particularly World Trade Organisation (WTO) talks." This is a vital effort, and frankly we need to do it in the WTO as well, and I hope that the Western Hemisphere can show the way," he said.
The declaration also reaffirms the ministers' commitment to transparency in the FTAA process.
The United States and Brazil assumed co-chairmanship of FTAA talks at the close of the Quito ministerial. The United States would host its ministerial meeting in Miami at the end of 2003, and Brazil will host its ministerial in 2004, the final year of negotiations.
In the Quito declaration, the ministers ratify the importance of agriculture for the economies of the region and reaffirm the hemispheric commitment to the elimination of agricultural export subsides and other practices that distort trade in agricultural products, such as domestic agricultural subsidies. The declaration also acknowledges the importance of addressing agricultural subsidies globally via WTO talks as well as regionally as part of FTAA negotiations.
The USTR noted that United States favours the elimination of agricultural export subsides globally and has also introduced a proposal before the WTO that would eliminate $100 thousand million in trade-distorting domestic agricultural subsidies around the world, including a 50 percent reduction in U.S. domestic agriculturalsubsidies.
In addition to the important issue of agriculture, hemispheric leaders must also address the concerns of the region's civil society to ensure the success of the FTAA negotiations.
In the Quito declaration, the ministers reiterate the importance of increasing the participation of the various hemispheric civil society sectors in the FTAA initiative, and agreed to "foster a process of increased and sustained two-way communication with civil society to ensure that it has a clear perception of the development of the FTAA."
By Lindsay Thompson, The Nassau Guardian
