Home > Programs > 2002 Ministerial on the FTAA > FTAA Ministerial Sets Negotiating Schedule

FTAA Ministerial Sets Negotiating Schedule Despite Differences on Agriculture

November 07, 2002
BRIDGES Monthly Review Volume 6 no. 38

During a meeting of the trade ministers of the 34 member states of the Free Trade Area of the Americas (FTAA) in Quito, Ecuador on 1 November, the US, Canada, and Latin American countries established a timeline in which to negotiate the Western Hemispheric free trade zone by 2005. Despite disputes -- over agricultural subsidies, for instance -- that some countries claim could halt the entire process, the US urged Latin American governments to continue developing the deal despite the political and economic problems gripping the region. "I recognise that this is a time of economic, and indeed political, uncertainty in this region and indeed the world. And I know the courage of many of you taking on this task...But this is the time," stated US Trade Representative (USTR) Robert Zoellick.

At the conclusion on the Ministerial, the second draft consolidated text of the FTAA was released, and is publicly accessible at either http://www.ftaa-alca.org/alca_e.asp or at http://www.ustr.gov/new/ftaa-quito.htm.

It was agreed that all members must submit draft trade proposals by 15 February 2003 that outline tariff reductions. The following two years have been scheduled for revisions, with the target being to establish a final accord during a summit in Brazil at the end of 2004. While the agreement around these dates came as little surprise, ministers felt they had provided a strong signal that the trade talks were still very much in motion.

Agricultural subsidies: a major obstruction

During the meeting, the member countries reaffirmed the need to end export subsidies and other practices that affect agricultural products and farm trade. Venezuelan trade Minister Ramón Rosales saw the inclusion of this issue in the Quito Declaration as a major achievement, as it had been excluded from the Buenos Aires FTAA Ministerial Declaration in April 2001. He went on to say that, "the agricultural issue is no longer part of an annex to the document. Now there is explicit recognition that we will not begin cutting farm commodity tariffs without previously resolving the problem of subsidies and other forms of domestic assistance to the farming sector." His comments were directed most explicitly at the US, which raised subsidies to its farm sector in May 2002 by 80 percent (see BRIDGES Weekly, 15 May 2002). Another Latin American trade minister added that the Latin American countries were prepared to "fight any agreement" that did not protect peasant farmers from unfair competition.

Responding to the farm subsidy question, US Trade Representative Robert Zoellick expressed his interest in the elimination of agricultural export subsidies worldwide. He noted that the US had already proposed a plan to the WTO that would eliminate USD 100 billion in domestic agricultural subsidies globally, and in the process reduce US domestic agricultural subsidies by 50 percent. However, other countries stated that the entire FTAA process was at risk if the US did not act in accordance with these statements.

Brazil, which represents almost 50 percent of Latin American economic activity, indicated that it might not sign the FTAA if reciprocal benefits were not forthcoming. Brazilian Trade Minister Sergio Amaral said that Brazil would consider joining a free trade arrangement with other Latin American countries, excluding the US, if the Americans refused to make key concessions, including cutting import tariffs and farm subsidies. He went on to say that if such concessions were not made then "there is, obviously, no reason to have an FTAA".

Civil society groups bring message of dissent to ministers

In an unprecedented sequence of events, on 2 November, following protests and pressure from civil society and campesino groups -- who were eventually joined by Ecuadorian police -- trade ministers agreed to allow a group of 50 protestors to enter the Ministerial venue, where they delivered a declaration of opposition to the FTAA. Representatives from campesino groups told trade ministers that they had no desire for their countries to become US colonies, while Peter Rossett of non- governmental organisation (NGO) Food First told US Trade Representative Robert Zoellick that he should be ashamed for pushing an agreement that would impoverish Latin Americans, not to mention many US citizens. Trade ministers also heard a speech from parliamentarians of 11 countries calling on their respective ministers to "reject the FTAA and recall their negotiators at once."

FTAA IPR Chapter unbalanced

At a 29-30 October civil society forum on intellectual property rights (IPRs) and biodiversity in the Americas in Quito, participants agreed that the draft FTAA Chapter on IPRs as currently written was essentially unbalanced for developing countries and ignored many civil society concerns in relation to IPRs. It was concluded that the chapter would run counter to sustainable development principles if issues such as the relationship between IPRs and genetic resources, the protection of traditional knowledge, and competition regulations inside intellectual property systems were not appropriately included. One participant felt that these conclusions reflected the urgent need for deep reform of the intellectual property chapter of the FTAA and the international IPR system so as to respond to environmental, developmental and public interest concerns.

Labour

Previous to the Ministerial, non-governmental group Human Rights Watch released a briefing paper that demanded the FTAA include effective workers' rights protections. According to Human Rights Watch Researcher Carol Pier, "free trade won't lift lives if it rewards, rather than discourages, harmful child labour, sex discrimination and anti-union conduct". The group suggested that one way an appropriate reward system could be implemented would be to insist that the FTAA guarantee labour rights protections above and beyond those set in the US. The NGO also released a second briefing paper that demanded FTAA members not support any agreement that would strengthen HIV/AIDS drug patents and thereby degrade public health measures allowed under existing global trade rules.

Other Results

In Quito, Ministers also launched Hemispheric Cooperation Program (HCP) meant to be a comprehensive trade capacity-building program to assist small and developing countries in the region in obtaining the potential benefits of the FTAA. USTR Robert Zoellick indicated that the US would seek a to increase the amount dedicated to this initiative by 37 percent, to USD 140 million.

It was decided that Brazil and the US would co-chair the FTAA process through to January 2005, when negotiations are scheduled to conclude. Ministers agreed that their next meeting would be in Miami in late 2003, with another meeting set for Brazil in 2004. Ministers also announced three meetings of the FTAA Trade Negotiations Committee for next year, in Trinidad and Tobago, El Salvador, and Mexico.

For further information, visit: http://www.foodfirst.org/progs/global/trade/quito2002/2002-11-01-update.php or http://www.ftaa-alca.org/