BRASILIA - (AP) -- The U.S. ambassador to Brazil told Brazilian congressmen Wednesday she was confident nations in the Western Hemisphere would reach a broad Free Trade Area of the Americas agreement by 2005, despite lingering differences over some issues.
''I think we'll have a broad free-trade area in the Western Hemisphere after January 2005,'' Donna Hrinak told the Foreign Relations Committee of Brazil's Chamber of Deputies. ``The climate of the talks has been very positive at the latest meetings.''
Differences in the negotiations have focused on the United States and Brazil, the two countries that co-chair the 34-nation talks. The United States has insisted on a broad definition of liberalization in areas such as government procurement, services and patent protection but has resisted Brazilian calls for liberalization of trade in agricultural commodities.
Brazilian legislators questioned the ambassador on whether the United States will ease its positions to advance the FTAA talks.
''Given its economic strength, the U.S. alone has the power to decide whether there will be a greater opening in the hemisphere,'' said Congressman Luiz Carlos Hauly.
''I disagree,'' said Hrinak. ``Brazil has voluntarily assumed a position of leadership. Brazil and the U.S. both have the success of the talks in their hands.''
Brazil led a group of more than 20 developing countries in challenging U.S. positions at a recent World Trade Organization meeting in Cancún, Mexico.
Hrinak defended the U.S position on agricultural subsidies, which she said were only a third of European subsidies.
''All products are on the table in the FTAA talks,'' she said. ``U.S. negotiators have said that they don't want to discuss domestic subsidies at the FTAA, but are open to discussing their impact on the Brazilian economy.''
U.S. officials have said they prefer to deal with the issue of domestic farm subsidies at the WTO, where they can also engage European and Asian countries on the matter.
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