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US insists with FTAA

President Bush's administration Foreign Trade representative Robert Zoellik during his Senate confirmation hearings insisted United States will push ahead for the Free Trade of the Americas Association, FTAA, and if "someone does not want to sit in the talks, they will be left behind". Mr. Zoellik said that president Bush wants to work closely with the Democrat opposition in foreign trade issues and would like to arrive to the coming heads of state and government all Americas summit in Quebec with a "fast track" consensus. US Trade representative emphasized that a free trade area from Alaska to Tierra del Fuego is a top priority for the recently inaugurated government. But Zoellik's strong message was directed to Brazil that on several occasions has declared that the country is in no rush to discuss FTAA until Mercosur is fully consolidated. However Mr. Zoellik admitted in Congress that US will have a "more flexible attitude" towards Mercosur, but even if some countries want to postpone negotiations, "we will still go ahead". Furthermore Mr. Zoellik's aspiration for a bipartisan foreign trade policy won't be easy, environmentalists and trade unions working closely with Democrats want to ensure conservation and labor regulations are included in any treaty signed by Washington. Mr. Zoellik as many of the current Bush administration played a key role in the NAFTA trade talks with Mexico and Canada in the early nineties with the Bush father administration.

Relief from the Federal Reserve

The United States Federal Reserve decision at the end of January to cut the basic interest rate half a point to 5,5%, and the prospects of further reductions, comes as a relief to financial markets and emerging countries. The reduction is particularly convenient both for Argentina and Uruguay that are struggling to overcome almost two years of recession. Uruguay received an immediate bonus of 30 million US dollars in its foreign debt interest bill and Argentina 22 million, although the benefit is expected to increase several fold as the "risk factor" of Argentine bonds and credits drops dramatically. The flattening of US economy growth, plus the drop in consume