Positions and Perspectives on the FTAA at the Quebec City Summit

 
As expected, the buzz words at the Third Summit of the Americas were "democracy" and "economic integration." Other themes, including "connectivity," empowerment of women, and counternarcotics efforts also came under discussion, but the main focus of media and public attention was the adoption of the so-called Democracy Clause and the Free Trade Area of the Americas (FTAA).

The Declaration of Quebec City stresses the importance of free and open economies. It describes the FTAA as "a key element for generating economic growth and prosperity in the Hemisphere" and urges its implementation by January 2005. In his Summit address, Prime Minister Jean Chretien of Canada claimed that "the creation of a free trade zone is not an end in itself, but rather an instrument to promote closer and more dynamic economic relations among the nations of the Americas." US President George W. Bush added that "it is time to extend the benefits of free trade to the rest of the hemisphere," arguing that "this will reinforce democratic progress in the continent."

Dissenting from this optimistic view was President Hugo Chávez of Venezuela. In statements to the media, he maintained that Latin America is not ready for trade liberalization. He pointed out that barriers to trade persist within the framework for integration, and recommended consolidating subregional efforts before moving on to the regional or hemispheric level. He also said that under Venezuela's new constitution, a popular referendum would be necessary to approve the FTAA. These remarks led some observers, including Miami Herald columnist Andrés Oppenheimer, to accuse Chávez of calling attention to himself to improve his bargaining position vis-à-vis the United States, while strengthening his image as a "revolutionary" among supporters in his own country.

Other critics insist that free trade will only benefit those in power and will further erode labor and environmental rights, which some industries already violate. In contrast, supporters of free trade believe that the FTAA will boost exports, resulting in job growth and more dynamic economies that will allow poor countries in the region to forge mutually beneficial relationships with larger trading partners. They foresee obstacles to trade progress if Democrats in the US Congress insist on the inclusion of labor and environmental provisions as a condition of granting Bush trade promotion ("fast track") authority, approval of which seem unlikely before the end of this year.

The Quebec City Summit made clear the commitment on the part of the hemisphere's leaders to create a free trade zone in the next four years. The challenge will be coming up with the political will to overcome obstacles to commercial integration and generating public trust in the results.