|
|
|
WORKING
TOWARD AN INTEGRATED AMERICAS
OUR OPINION: VISION OF A HEMISPHERIC FTAA IS A GOAL WORTH PURSUING
Publication:
The Miami Herald
Printed: Sunday, November 16, 2003
Editorial |
Nearly all governments protect agriculture in one
form or another. More than
110 countries produce sugar, all with some government assistance, for
example -- and very little of it is traded on the open market. For one
region to try to resolve this alone would only create new market distortions
and inequities. Thus, reducing farm subsidies should be thrashed out
in the
World Trade Organization, as U.S. negotiators argue.
Florida's citrus industry, which generates 90,000 jobs and a $9 billion
economic impact for the state, also makes a compelling argument for
anti-monopoly measures. Brazil's citrus industry, which is controlled
by
five big processors, is the low-cost producer. Together the two produce
85
percent of the world's orange juice. Without some protection, Florida
citrus
could be put out of business; and Brazilian producers could gain a worldwide
monopoly. That would eliminate competition and thus harm consumers.
— Excerpt from The Miami Herald editorial below.
Let's be clear. The pursuit of a Free Trade Area of
the Americas, which
continues in earnest this week in Miami, is an eminently worthwhile effort.
But everyone should keep this much in mind: So far, there is no FTAA
agreement. The Miami meeting is one in a long series of discussions.
No one,
not even negotiators, now knows what an FTAA might be in final form,
nor
should they state categorically what it will mean or do. We simply don't
know. We can discuss FTAA goals and the process. But an actual trade
agreement is, optimistically, more than a year away.
World is shrinking
By creating the Free Trade Area of the Americas, the United States and
our
hemispheric neighbors have a historic opportunity to shape open markets
for
our collective benefit. The 34 trade ministers meeting this week in Miami
can play a pivotal role in moving the process forward. They must focus
on
the prosperity that an integrated hemispheric market could ultimately
bring
to each nation and work constructively through the disagreements that
naturally exist.
The reality is that the world already is globalizing. No one can turn
back
that tide. Nor should they want to. Our best hope is to prepare for the
inevitable future -- and do so before our economies are pounded by other
trading blocs and low-cost China.
We welcome discussion on how best to do so by all sides. Free speech
is
alive and well in Miami, and we should see it in many peaceful debates
and
demonstrations this week. It will include, for example, the participation
for the first time of civil-society groups as a part of the official
FTAA
conference.
The meeting also will be an opportunity for Miami to shine and remind
visiting dignitaries of how good it would be for an FTAA headquarters
to be
located here, if there were to be an FTAA agreement -- even though site
selection isn't a central focus of this week's agenda.
Ideally the FTAA could spur economic growth throughout the hemisphere.
Industries and firms with strong competitive advantages would have ample
opportunities to profit from access to the world's largest open marketplace:
More than 800 million people in 34 countries, from Canada's Northwest
Territories to Argentina's Patagonia.
Hard work ahead
The FTAA would offer poor countries the opportunity to prosper from exports
and foreign investments. U.S. consumers would benefit from cheaper goods
and
new trade-related jobs. The FTAA could raise living standards throughout
the
region as well as improve health, labor and environmental protections.
To realize that vision, however, ministerial negotiators will have to
work
hard to reconcile some very tough issues. Brazil, for example, looks
favorably on trade talks, but prefers first to form a South American
trading
bloc that could then negotiate more forcefully with the United States.
We
believe this means that Brazil would support an FTAA, but not for many
years
yet. If that happens, it would leave in question whether the FTAA is
an idea
whose time has come -- or still is years away from arriving.
In any case, letting go of protectionist policies, reconciling differences
in policies and priorities, gaining consensus on rules and standards
will
require tough decisions for all the countries involved. As is the nature
of
every free-trade deal, there will be FTAA winners and losers. Ultimately,
any FTAA agreement should ensure that long-term benefits will outweigh
individual losses.
This week, negotiators should push closer to that goal. Perhaps the biggest
hurdle would be agricultural subsidies. Brazil, South America's biggest
economy, is pushing for the United States to lower farm subsidies and
cut
anti-dumping rules against below-cost imports. The United States eventually
may have to phase out such supports, but how it does so is critical.
Some goals achievable
Nearly all governments protect agriculture in one form or another. More
than
110 countries produce sugar, all with some government assistance, for
example -- and very little of it is traded on the open market. For one
region to try to resolve this alone would only create new market distortions
and inequities. Thus, reducing farm subsidies should be thrashed out
in the
World Trade Organization, as U.S. negotiators argue.
Florida's citrus industry, which generates 90,000 jobs and a $9 billion
economic impact for the state, also makes a compelling argument for
anti-monopoly measures. Brazil's citrus industry, which is controlled
by
five big processors, is the low-cost producer. Together the two produce
85
percent of the world's orange juice. Without some protection, Florida
citrus
could be put out of business; and Brazilian producers could gain a worldwide
monopoly. That would eliminate competition and thus harm consumers.
Trade ministers aren't likely to resolve these and other thorny issues
this
week, but they should focus on areas amenable to agreement, such as
anti-corruption rules, and push the FTAA process forward. Otherwise,
U.S.
negotiators may turn to subregional trade deals to the detriment of those
countries left out.
Not a cure-all
A successful, well-crafted FTAA deal would:
•
Provide mechanisms to soften the blow for workers and industries that
might be adversely affected.
•
Promote modern, effective business practices and strengthen behaviors
that
spur long-term economic health: property rights, investor rights, health
and
labor standards, environmental protections and judicial systems that
effectively enforce the rule of law.
•
Discourage bureaucratic red tape that fosters corruption and prevents
fair
competition.
•
Invite civil society to monitor progress.
•
Not allow foreign-investor rights to inhibit national, state and
provincial authorities from protecting human health and the environment.
Even if these ideas are achievable, it should be remembered that no trade
agreement can be a cure-all for poverty and social ills. Each government
would still have to craft the right policies and institutions to leverage
the wealth created by commerce into healthy economic development. |
|