MercoPress. South Atlantic News Agency

Chile: Blame Congress

In spite of progress in the last round of free trade talks between United States and Chile, held in Santiago, the lack of the Trade Promotion Authority, TPA, (the former “fast track”), is becoming a growing hurdle for a definitive agreement.

Chile's leading negotiator Osvaldo Rosales said that results of the eleventh round were encouraging but without the TPA, "sensitive issues regarding labor, environment and certain aspects of agriculture, remain unchanged".

"Therefore the difficulties can't be blamed on the Chilean authorities, or US President George Bush's willingness, but in the US Congress that in spite of White House prodding refuses to grant TPA, which enables the American government to negotiate trade agreements", indicated Mr. Rosales.

Mr. Rosales pointed out that in spite of the US and Chilean governments intention of signing the free trade agreement in the first half of 2002, as November approaches chances will evaporate because of mid term elections and the unpopularity of these agreements in the American electorate.

However Mr. Rosales said the overall result of the eleventh round was positive since Washington's initiative included market access both for agricultural commodities and industrial goods.

Another round is scheduled in May.

Opposition to a free trade agreement is also strong in certain sectors of the Chilean economy. Christian Democrats, junior partners in the Chilean ruling coalition, have warned they will not support an agreement that does not contemplate safeguards for small and medium farmers, who represent over 30% of the country's working force.