MIAMI - Negotiations to turn the Americas into the world's largest free-trade zone hit an early roadblock Monday.
Canada and Chile complained about a deal reached by Brazil and the United States that was aimed at making the talks smoother.
Brazil and the United States proposed an agreement to create a base of common rules for the Free Trade Area of the Americas, but allow each of the 34 countries to pick which of the more controversial clauses they wish to follow, according to a draft copy of the proposal.
Canada and Chile countered that all countries should follow every clause, according to an official with the Brazilian delegation who spoke on condition of anonymity. Officials reached by telephone had no immediate comment.
Trade ministers and officials from every country in the Western Hemisphere except Cuba are at this week's meeting, and thousands of anti-free trade protesters were also expected.
About a dozen protesters stripped to their underwear outside a Gap clothing store Monday to protest the chain's policies, while some others unsuccessfully demanded a meeting with Mayor Manny Diaz to complain about police surveillance.
Police reported five protest-related arrests Monday, but two of the arrests were later voided by a commanding officer who reviewed the charges. Two people faced disorderly conduct charges and another was arrested on a felony charge of battery on a police officer.
Diaz wasn't at City Hall on Monday because he was tending to FTAA-related matters, spokeswoman Kelly Penton said.
"It's a matter of scheduling," Penton said. "You can't show up at his office and expect a meeting that same day."
The deal between the United States and Brazil would apparently scale back the free-trade region, which was conceived as a comprehensive agreement that would reduce or eliminate all trade barriers among member nations. If those barriers are lowered, it would effect consumer prices, manufacturing, farming, banking and other economic activity from Alaska to Argentina.
U.S. lead negotiator Ross Wilson insisted Monday that the proposed draft agreement was not a "retreat" from earlier efforts to create a comprehensive free-trade area by January 2005.
He said there has been debate among the 34 nations on how to advance negotiations, but that was to be expected in complex talks.
Wilson noted that aides were only about halfway through their work to prepare for the start of trade ministers' meetings Thursday.
The compromise came after Brazil and the United States had been arguing fiercely about the scope of the agreement. Brazil wants the United States to reduce or eliminate subsidies, quotas, tariffs and other barriers that protect American farmers. The United States says agricultural issues should be decided by the 146-member World Trade Organization.
Farmers may have the most to lose — or gain. U.S. farmers, led by Florida's orange and sugar growers, have opposed Brazil's efforts to lower U.S. tariffs on imports from foreign competitors, while Brazil is fighting to remove U.S. import restrictions on its booming beef industry, among other sectors.
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AP Business Writer Traci Carl contributed to this report.
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