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CIAO DATE: 01/03
Preface
WiIn November 2002, the United States and Brazil assume co-chairmanship of the final phase of the Free Trade Area of the Americas (FTAA) negotiations, aiming by January 2005 to reach agreement on creating a single free trade area stretching from Alaska to Argentina.
In this issue of Economic Perspectives, we review the role of trade in the context of U.S. policy in the Americas, the potential benefits of an FTAA for the entire region, the progress thus far in the FTAA talks, and the obstacles still facing negotiators as they work to meet the deadline set by regional leaders at the 1994 Summit of the Americas in Miami.
U.S. Trade Representative Robert Zoellick outlines the United States' goals for the FTAA negotiations. U.S. Assistant Secretary of State Otto Reich stresses the importance of trade liberalization in the Americas — not only to boost economic growth but also to strengthen the ties that unite the region's 34 democracies. Under Secretary of Commerce Grant Aldonas says the full potential of the FTAA will be realized only if negotiators address a number of areas beyond trade and investment, such as the need for dependable law enforcement and independent judiciaries. Adolfo Franco, assistant administrator for the U.S. Agency for International Development, describes U.S. programs designed to help smaller economies adapt to the challenges of a free trade environment.
Given that the FTAA is a regional undertaking, this journal also includes articles from Ambassador Rubens Barbosa on Brazil's perspective as it prepares to work with the United States for the duration of the FTAA talks, and from Mexico's Minister of the Economy, Ernesto Derbez, who describes his country's successful moves over nearly two decades to deepen its integration into the world economy.
Economist Jeffrey Schott provides an overview of the many challenges facing the FTAA negotiators, while Scott Otteman of the National Association of Manufacturers urges countries to stay the course on trade liberalization as the most reliable and effective path to prosperity.
In separate articles, two members of Congress who hold key trade-related positions — Republican Philip Crane and Democrat Sander Levin — offer their views on how the FTAA negotiations can best shape the rules of regional trade to maximize the benefits of globalization.
Finally, this journal lists a series of useful resources, including links to Internet sites and selected readings available in print, dealing with FTAA-related issues.