Tensions rise as free-trade talks end
    Associated Press; Canadian Press
    November 2, 2002

    QUITO, Ecuador (AP-CP) -- Under tight security and threats of protests, U.S. officials worked Friday to temper skepticism from some Latin American countries about a plan to create a hemisphere-wide free-trade zone by 2005.

    Business and government representatives from 34 countries in the Western Hemisphere, including Canada, struggled to outline a time frame to set up the Free Trade Area of the Americas, a trade bloc envisioned as an extension of the North American Free trade Agreement.

    The talks were largely overshadowed by growing resistance by some Latin American leaders who united behind complaints the United States isn't doing enough to open its markets to businesses in the region.

    "We have to defend our interests too," said Argentine Foreign Minister Carlos Ruckauf.

    "We have to go in united to protect ourselves against the giant," he said, referring to the United States.

    Venezuelan Production Minister Ramon Rosales also cautioned creating a larger trade area requires more effort from the United States.

    "We need markets opened to us to help create jobs," he said.

    "It's the only way to combat poverty and help strengthen our economy."

    Business leaders from smaller economies in Latin America and the Caribbean said they want the United States to drop agricultural subsidies and import tariffs as part of the agreement.

    Closing out the talks, U.S. Trade Representative Robert Zoellnick appeared to signal those voices had been heard, saying: "Many have mentioned the need for an expanded role of the larger economies and I agree with that."

    But he insisted those differences should not be an obstacle to deepening trade links, particularly at a time when much of the region is grappling with economic turmoil.

    "What better time is there to take on this new challenge?" he said.

    In the meeting's final declaration, officials set Dec. 15 as the date to begin tackling nettlesome tariff issues and promised to continue working on the issue of subsidies, which have proved divisive, particularly between Brazil and the United States.

    Both countries will co-chair the next round of meetings, scheduled for next year in Miami when representatives from the government of Brazil's president-elect Luiz Inacio Lula da Silva, a vocal critic of the trade pact, are expected to participate.

    International Trade Minister Pierre Pettigrew, who represented Canada, called the Quito meeting an important phase in the Free Trade Area of the Americas negotiations.

    "Canada achieved its goals at this meeting by keeping these negotiations on track to yield benefits for Canadian exporters and consumers, as well as for the citizens of the hemisphere as a whole," said Minister Pettigrew.

    "The release of the latest draft FTAA texts confirms the new culture of transparency in trade negotiations, which Canada has championed," Pettigrew said in a statement.


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