WASHINGTON (Reuters) - A U.S. official said on Thursday tensions between the United States and Brazil following the recent collapse of world trade negotiations should not be allowed to derail Western Hemisphere free trade talks.
"It would be a shame to miss another opportunity," Deputy U.S. Trade Representative Peter Allgeier told a group of U.S. business executives. "Our hemisphere very much needs this kind of stimulus to economic growth."
The United States still wants to complete negotiations on the proposed Free Trade Area of Americas (FTAA) by Jan. 1, 2005 even though the collapse of world trade talks have thrown that target into doubt and highlighted sharp differences between Washington and Brasilia on trade.
The United States has blamed Brazil, as a leader of the so-called G21 group of developing countries, for poisoning the atmosphere at the recent World Trade Organization meeting in Cancun, Mexico and delivering harsh rhetoric that made it more difficult for countries to reach a deal.
Heading into a Western Hemisphere trade ministers meeting in Miami in November, the two countries now face a key test of whether they can bridge their differences on trade.
As co-chairs for the final phase of the FTAA talks, how well the United States and Brazil work together will be a major factor in whether the negotiations finish on time.
Currently, they have vastly different visions for the scope of the regional free trade pact. The United States is pushing for a single, comprehensive agreement that would slash tariffs on manufactured and agricultural goods, while strengthening rules governing services trade, investment, intellectual property protection and government procurement.
Brazil, as leader of the Mercosur trade bloc which also includes Argentina, Uruguay and Paraguay, has proposed a three-track approach that envisions a series of bilateral agreements to cut tariffs and a hemispheric pact on items such as rules of origins and dispute settlement, but leaves negotiations on more controversial issues to the WTO.
While criticizing the Mercosur plan as an "outdated" approach to trade liberalization, Allgeier said the United States was committed to working with Brazil to try to forge a common vision for the FTAA. "Obviously, that means we should not be engaging in divisive rhetoric," he said.
Mark Smith, executive vice president of the U.S.-Brazil Business Council, said he thought Brazil and the United States could agree on a plan if they can "step away from some of the recriminations that have been traded."
Meanwhile, domestic opponents of the regional free trade agreement also made their voices heard on Thursday.
The AFL-CIO, the United States largest labor organization, announced plans for a 30-city "March to Miami" beginning in Seattle on Saturday to highlight the need for tough labor and environmental provisions in the FTAA.
The U.S. sugar industry, along with members of Congress from sugar-producing and refining states, also urged the Bush administration not to rush into regional trade deals that they say would kill off American sugar jobs and plants.
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