MercoPress. South Atlantic News Agency

US-Chile trade talks

United States and Chile held this week in Santiago the eleventh round of talks in the framework of a future free trade agreement between both countries.

According to Chilean sources talks focused on "conflicting" issues such as labor, environment and market access for agricultural and agro-industrial produce. Chile and the US have been holding talks since December 2000 and US Ambassador in Santiago, William Brownfield warned that there should be no immediate expectations since "this meeting and the following rounds are the most difficult". However both sides expect to conclude discussions during the current year. Much will depend on President's George Bush ability to convince US Congress in a mid term election year, to grant the Executive the "Trade Promotion Authority", TPA, previously know as "fast track". This mechanism gives the White House authority to negotiate trade agreements that must be fully approved or rejected by Congress in a given period. United States is the main foreign investor in Chile with over 6 billion US dollars. Although Chilean officials have great expectations about a free trade agreement with the United States, Chilean farmers are not convinced fearing the country could have to allow imports of US subsidized commodities.