MercoPress. South Atlantic News Agency

FTAA negotiations postponed for a month

Countries participating in the conformation of the United States sponsored Free Trade Association of the Americas, FTAA, decided to postpone for a month the coming March 17 meeting of Deputy Chancellors to be held in Puebla, Mexico, because no minimum agreements were reached.

Argentine International Economic Relations Minister Martín Redrado made the announcement after two days of frustrating negotiations in Buenos Aires with representatives of 12 of the 34 FTAA countries. The Buenos Aires discussions were supposed to pave the way for the Deputy Chancellors meeting.

In a brief press conference, Mr. Redrado as spokesperson for Mercosur, talked about the "labyrinth" in the negotiations, which has Mercosur struggling for "market access" and the United States trying to impose "rules" in the negotiations.

However it was agreed that an intermediate reunion will be held in Buenos Aires on March 31 and April 1, and the meeting in Puebla is now scheduled for April 22,23.

In Washington the US Trade representative Robert Zoellick addressing the Senate Finance Committee said that "the US will work with creativity and flexibility" to achieve the goal of the FTAA by January 2005, "a process that won't be easy".

Mr. Zoellick also pointed out that the countries with a greater FTAA ambition "are those working with us in bilateral free trade agreements" in direct reference to Colombia and the Central American countries.

"US is in route to obtain the benefits of free trade with two thirds of the western hemisphere", highlighted Mr. Zoellick who outlined that Canada, Mexico and Chile already have free trade agreements with the US; Peru and Ecuador are in the process of negotiations while Bolivia is preparing for discussions.

Mercosur on the other hand believes that the US must be more flexible with its agriculture policy, "neutralizing internal aids" and "speeding import tariffs reduction" particularly for those commodities most protected.

Regarding services liberalization and investments protection, the United States main areas of interest, Mercosur improved its previous position proposing the "most favoured" nation treatment.

As requested by the US, Mercosur accepted changes in the FTAA discussions methodology and concepts but also insisted that the "most developed economies of the area, particularly the United States and Canada, have more to give to the agreement".

But Eduardo Sigal, Argentine American Economic Integration Secretary cautioned that if "we can't advance in agriculture, following Mercosur proposals it's senseless to keep advancing in the other areas".