QUEBEC (AP) - If the devil is in the details, the next four
years promise to be fiery torture for negotiators who have to
hammer out thousands of disputed clauses before the world's
most ambitious free-trade zone opens for business in 2005.
The rough draft of the hemisperic trade pact, 458 pages
long in its English version, consists mostly of bracketed
material that nobody has agreed on yet. Taking away those
brackets and filling in the blanks will require painful
concessions for the 34 Western Hemisphere countries involved.
President Bush (news
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sites) says the plan will open markets and spread
prosperity across the Americas. But smaller nations fear they
could be steamrolled into accepting proposals of the United
States and Canada, the region's two richest countries.
Countries such as El Salvador (news
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sites) in Central America and St. Lucia in the Caribbean
want special treatment to protect vulnerable sectors of their
economies. South America's giant, Brazil, is insisting the
United States give ground on farming subsidies and
anti-dumping rules that keep out Brazilian (news
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sites) products such as steel, sugar and orange juice.
The United States wants Latin American countries to lower
their generally high tariffs.
``Right now, Brazil's average tariff is about 17 or 18
percent. Ours is about 2 or 3 percent,'' U.S. Trade
Representative Robert Zoellick said. ``So it doesn't surprise
me that Brazil wants to try to reduce barriers to its trade.
We want to try to reduce barriers to our trade.''
Leaders at the Quebec summit pledged to complete
negotiations on the treaty by Jan. 1, 2005, and ratify the
deal by the end of that year.
That will put into place the Free Trade Area of the
Americas, a duty-free zone stretching from Alaska to Argentina
that encompasses 800 million consumers and economies that
produce about $13 trillion a year.
Under the pact - billed as a natural expansion of the North
American Free Trade Agreement that currently links the United
States, Canada and Mexico - import duties on goods traded
across members' borders will be gradually reduced to zero.
As in other international trade agreements, members will be
able to negotiate protection for some products they consider
especially important - orange juice in Florida, chemical
products in Brazil, corn syrup in Mexico. But generally these
goods should not account for more than 15 percent of the total
covered by the agreement.
``We have a choice to make,'' Bush said. ``We can combine
in a common market so we can compete in the long term with the
Far East and Europe, or we can go on our own. Going on our own
is not the right way.''
Many countries back Bush's view, but some are worried the
United States will get the upper hand in negotiations and
force them to give more than they will get in return.
Now, negotiators must reach agreements in nine main areas:
access to markets, investment, services, government
procurement, how to resolve disputes, intellectual property
rights, subsidies, antidumping rules and competition policy.
That will involve an army of negotiators from various
ministries who will spend the next four years swapping
information, evaluating each others' proposals and making
their own recommendations in emails, faxes and airplane
flights up and down the continent.
A coordinating committee will meet at least twice a year,
each time in a different country, to monitor progress.
No major progress is expected anytime soon because until
May 2002, negotiators will be debating only procedure. Also,
Bush still needs to win special negotiating powers from the
Congress known as ``fast track'' which are seen by Latin
Americans as a symbol of the president's commitment to the
pact.
On the sidelines of the summit, the legions of delegates,
trade representatives and diplomats were discussing their
negotiating strategies.
``Two thousand and five is not that far away. We think it
gives us a very short negotiating period,'' said Lytha
Spindola, a Brazilian foreign trade secretary.
To prepare her ministry's small team - Brazil counts only
about 15 trade negotiators spread among the foreign, trade and
agriculture ministries - Spindola will be recruiting 80 new
analysts next week.
``They will help us get more information and allow us to
formulate a better strategy,'' Spindola said.
``We need more people,'' said Roberto Gianetti da Fonseca,
head of Brazil's Foreign Trade Chamber. ``I mean what happens
if, in the middle of the talks, one of our negotiators gets
stomach ache or diarrhea? Do we have to stop the whole round
and wait for him to get better?'' |