MercoPress. South Atlantic News Agency

Future FTAA members try to iron differences

Chile, Mexico, United States and ten other countries presented a new proposal with the issues to be discussed in the achievement of a common base for the Free Trade Association of the Americas, to which 34 countries of the three Americas are committed as of January 2005. The meeting of minister is being held this week in Puebla, Mexico.

In the paper under the pompous title of "negotiations for joint common rights and obligations applicable to all countries" the sponsoring countries support an "FTAA compatible with the WTO" and that negotiations should point towards achieving a balanced accord taking into account differences between country economies.

The draft considered a "minimum discussion base for FTAA" is one of four proposals circulating among delegations of the 34 countries, (all hemispheric members with the exception of Cuba). Another originated in Mercosur. However both proposals don't differ much according to Mexican sources hosting the meeting.

From this minimum base, "more ambitious chapters and commitments can be added", by those countries wishing to climb to a second floor, as was agreed in the previous meeting held in Miami last November.

The document in the fourth point indicates that according to what is agreed among countries, "additional provisions can be added to the joint common rights and obligations". Regarding agricultural and non agricultural commodities, the text suggests that "all the universe of tariffs will be subject to negotiations".

"Tariff elimination will be substantially over all trade, so as to achieve an adequate balance of rights and obligations where countries can achieve benefits in accordance with their own levels of commitment".

Regarding the controversial investments and government procurement chapters G-13 text suggests discussing "transparency" and "procedure provisions".

For those countries with an interest in the "second floor" or a more committed FTAA, the different proposals have listed procedures but no specific issues.

However the listed procedures has become a most controversial issue, since Mercosur argues that countries in the "ground floor" should participate in the "second floor" negotiations, "but Mexico and other countries don't accept it"

"They are only willing to grant them observer status", said a Mexican diplomatic source.