FTAA alone cannot modify US-Latin American Relations

Caracas, 28 August (EFECOM).- According to a study published today in Caracas, the creation of the Free Trade Area of the Americas (FTAA) will not suffice to bring about deep-seated change in Latin American relations with the United States.

The document in question was prepared by the Latin American Economic System (SELA) whose headquarters are in Caracas, Venezuela. The document entitled "Perspectives of the countries of Latin America and the Caribbean in the FTAA", analyzes the setting in which Latin American and Caribbean countries will be required to act vis-a-vis the expectations being forged by the new FTAA hemispheric order.

The document goes on to state that "although high level US spokespersons ascertain that the FTAA will become the cornerstone for the new hemispheric order, current economic and political trends seem to indicate that it cannot, alone, achieve deep-rooted changes in US-Latin American relations."

The FTAA is a free trade initiative that was proposed by the United States at the Americas Summit held in Miami in 1994. Acceptance of this initiative was ratified by the countries of America last April on the occasion of the Americas Summit in Santiago, Chile.

The hemispheric free trade area, stretching from Alaska all the way to Patagonia, is expected to be fully operating by the year 2005.

SELA’s report points out that the importance conferred by US statesmen to FTAA negotiations should not be overestimated in view that the US will not be awarding exclusive attention to these.

The study, prepared by US academician, Craig Van Grasstek, points out that: "These negotiations are but one of the many bilateral, regional, and multilateral initiatives in which the US is presently involved and consequently, exclusive attention cannot be expected from the United States."

According to Van Grasstek, the countries of Latin America and the Caribbean need to pinpoint their "location in the US’s larger strategy, and this will enable them to adopt a realistic approach to the FTAA negotiations."

Van Grasstek explains that at trade level, the countries of Latin America and the Caribbean "have lost importance as may be gleaned from the plunge in US exports to the region: in 1950, 27.9% of US exports were destined to the region whereas in 1997 this percentage reached only 19.5%. Imports from the region to the US went from 34.1 % to 15% for that same time period."

According to the organization’s data, US global trade with the 28 SELA Member States ran up a deficit in the amount of US$ 5.1billion in 1997, which represents 2.8% of the US total deficit.

SELA’s study goes on to state that "One of the favorable aspects that will come forth from the FTAA will be the convergence of the 34 participating countries’ economic models for free trade. On the other hand, however, the copious number of political disputes that have created friction in the economic relations between the US and its continental partners has not been curbed."

The document singles out certain heated issues including economic sanctions that in fact have political roots, labor legislation, environmental protection, promotion of open competition, or the punishment for granting of bribes and corruption, and the battle against drug-trafficking.

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