MONTERREY, Mexico (CP) - Prime Minsiter Paul Martin cast doubt Sunday on the likelihood that a 2005 deadline to create the world's largest trading zone can be met.
The plan to establish a Free Trade Area of the Americas by Jan. 1, 2005, which would encompass most of North, South and Central America, is overly "optimistic," Martin said, adding Canada should focus on its bilateral trade deals in the hemisphere. "It's unfortunate," he said of the deadline. "We should build on our foundation (of bilateral trade agreements)."
Martin, who made the remarks en route to attend a special Summit of the Americas, said snags have included reluctance on the part of Brazil over "unfair" U.S. agriculture subsidies.
"If you take a look at the position that Brazil has taken, clearly there would have to be a whole settlement of the agricultural issue. It may well be that Brazil . . . would have to feel more confident within themselves."
Brazil has difficulties with a number of the nine FTAA negotiating areas established in 1998, including competition policy, intellectual property, investment, services, government procurement and trade remedies.
Brazil also wants agricultural subsidies near the top of the agenda, something that pits the South American giant head-to-head with U.S. interests.
U.S. officials want agricultural issues for the FTAA decided by the World Trade Organization and its 146 member countries.
Martin said the goal of a free trade zone incorporating 34 countries (Cuba is not included) should not be abandoned. But his remarks were the first public acknowledgment by Canadian officials that the deadline is perhaps unreachable.
"If we miss that deadline, I don't think we should give up. I think we should continue to push for free trade of the Americas. I think it would be very good for South America and I think it would be very good for Canada," he said.
Brazil's leftist President Luiz Inacio Lula da Silva will attend the week's summit and is scheduled to meet U.S. President George W. Bush.
Brazil has threatened to take off the bargaining table for the FTAA issues such as investment and intellectual property rights that are high priorities for American companies.
For Brazil and other countries, it makes no sense to create the world's largest free trade zone and open their markets to rich countries like the United States unless they win access for their own agricultural exports.
Martin is scheduled to meet Bush, Mexican President Vicente Fox, and Chilean President Ricardo Lagos.
He arrived at the two-day summit Sunday with wife Sheila by his side.
Canada has already pushed ahead with bilateral agreements with Chile and Costa Rica.
Negotiations with the Central American Four - Guatemala, El Salvador, Honduras and Nicaragua - have been underway for years.
While at a glance these deals appear to hold much greater promise of market expansion and diversification for the smaller countries, they are also key steps in Canada's ongoing attempt to secure more trading partners.
The battle with the U.S. over softwood lumber, for example, has pointed out some of the flaws in the NAFTA agreement.
A November meeting on the FTAA in Miami led to a watering-down of some aspects of the deal, but the process is still considered damaged by many.
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