FTAA FIFTH MINISTERIAL

  
Trade ministers of the 34 countries of the hemisphere participating in the Free Trade Area of the Americas (FTAA) negotiations met in Toronto on November 3-4, 1999 for their fifth ministerial meeting. The ministers welcomed the considerable progress achieved during the past 18 months under Canada’s chairmanship since the FTAA’s inception in Miami and agreed they are well on their way to completing work by 2005.

They reiterated:

• the importance of trade liberalization and the corresponding deepening of economic integration to achieve growth and prosperity

• the commitment to avoid policies and practices that adversely affect trade and investment

• that negotiations should take into account the broad social and economic agenda contained in the Santiago and Miami Declarations of Principles and Plans of Action to raise living standards, improve working conditions and protect the environment

• that the FTAA should take into account the differences in size and level of development of the different economies of the hemisphere

• the benefits already accruing from the FTAA process, such as increased networking and information sharing among governments, business and civil society.

Progress and Next Steps

The trade ministers noted the preparation of outlines of chapters for the FTAA by the nine Negotiating Groups (NGs) and progress on their work programs and instructed them to prepare drafts of their respective chapters for the next ministerial (in Argentina in April 2000). They instructed the Trade Negotiating Committee (TNC) to prepare a report on these texts indicating areas where their guidance is needed and to begin discussing the general and institutional aspects of the agreement. They also mandated three meetings of the TNC: in Guatemala in April 2000, and later in Barbados and Peru.

Structure and Organization

The ministers reaffirmed the central role of the TNC in managing the FTAA negotiations by guiding the negotiating groups and committees, ensuring transparency, overseeing administration, implementing business facilitation measures, addressing unresolved issues and ensuring that the NGs carry out their mandates and report to the TNC by December 2000. The ministers acknowledged and appreciated the work of the chairmen and vice chairmen of the NGs, committees and Consultative Group during the first 18-month period and published the list of new chairs and vice chairs for the next period.

Business Facilitation

The ministers agreed on a number of specific business facilitation measures, with initial work concentrating on customs procedures and transparency. New measures will be recommended by the TNC at the next ministerial. The IDB/IMF will finance technical assistance for implementation of the measures. Eight specific measures in the customs area will be implemented beginning January1, 2000. Transparency measures were included as an annex to the meeting’s declaration.

Relationship between the FTAA and the WTO

Support was extended for launching multilateral trade negotiations at the WTO Third Ministerial Conference in Seattle on December 3. The FTAA is consistent with WTO provisions and its negotiation will be pursued closely. The ministers agreed to work toward the following goals: agreement at the WTO Multilateral Negotiations on Agriculture on elimination of export subsidies; earliest compliance with all commitments under the Uruguay Round Agreement on Agriculture; and disciplines on other trade-distorting practices at the next WTO MNA. It was agreed that the interests of developing countries, especially small economies, would be furthered through enhanced attention to effective implementation of special and differential treatment so they might benefit from the WTO.

Other Issues

Commitment to transparency in negotiations was reaffirmed. The ministers noted the establishment of the Committee of Government Representatives on the participation of Civil Society and welcomed its report on a range of views. They also acknowledged the recommendations of the Fifth Americas Business Forum and thanked the Joint Government-Private Sector Committee of Experts on Electronic Commerce for its detailed report, encouraging it to develop recommendations for the next ministerial. The ministers also considered the report of the Consultative Group on Smaller Economies and agreed with the TNC’s acceptance of its recommendations for further work in the next stage of negotiations. The Tripartite Committee (OAS, IDB and ECLAC) was asked to disseminate an inventory of training opportunities in trade policy, explore opportunities for technical assistance to improve statistics and measures that affect trade in services, establish national contact points for information on national laws affecting this area, and maintain a calendar of deadlines established by NGs.

Finally, the ministers expressed appreciation for the support provided by the member organizations of the Tripartite Committee (TC) and the logistical support of the Administrative Secretariat. They also appreciated the support of the government and people of Florida for the Secretariat and asked the TC to support the relocation and operation of the Secretariat in Panama when its stay in Miami is finished.

 

www.sice.oas.org and www.ftaa-alca.org/view_e.asp