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Working Group 4 Free Trade Area of the Americas (FTAA)
was chaired by Senator Céline Hervieux-Payette from Canada.
Mr. Tom Oommen acted as facilitator.
The
group addressed the issue of economic integration in the Hemisphere
highlighting the need for an active and effective participation
by national legislatures in the process to establish FTAA. Delegations
from all regions in the hemisphere discussed a wide range of topics
based on a summary of the draft chapters produced by the nine Negotiating
Groups of the FTAA. These draft chapters were published after the
Third Summit of the Americas, held in Quebec City, Canada, in April
2001.
The
Working Group took note of a presentation by the Mexican delegation
and the distribution of a Draft Model Law on the Role of National
Legislatures in trade negotiations. The Group thanked the Mexican
delegation and agreed to study the model law in the context of their
own systems and practices.
The
Delegations of Canada and Mexico agreed to create a working group
to develop a study on the effects of NAFTA after 7 years from its
entry into force, including Chapter 11.
Recommendations:
Free
Trade Area of the Americas:
Aware
that poverty and inequality limit the possibilities of economic
integration of the Americas, and
Convinced
that the integration of the hemisphere should not be limited to
commercial aspects but should take into account the social and environmental
dimension of trade agreements,
We
Parliamentarians of the Americas
Recommend
that the FTAA negotiating process should be part of a broader effort
to create prosperity and expand economic opportunities while fostering
social justice, the realization of human potential, and environmental
sustainability.
Situation
in Argentina:
FIPA
expresses concern over the economic crisis affecting Argentina and
the effects that this crisis may have on other economies of the
region. The Forum highlights the importance of facilitating increased
exports from Argentina as a means of stablizing its currency and
generating income from international sources. During the discussions
it was noted that elimination of subsidies that distort international
prices as well as tariffs, quotas, and non-tariff barriers could
effectively assist Argentina and would represent an advance in the
process of trade liberalization.
Role
of Parliaments:
Certain
of the significance of an effective participation of Parliaments
in trade negotiations as representatives of people in the Americas,
and
Realizing
the crucial responsibility for enhancing understanding of the implications
of the creation of the Free Trade Area of the Americas,
We
Parliamentarians of the Americas
Recommend
the introduction of the FTAA negotiating process as a topic of permanent
discussion in all national legislatures as a matter of priority
for all countries in the Hemisphere;
Recommend
the exchange of information and experiences between national legislatures
regarding the negotiation and implications of trade agreements.
We
Parliamentarians of the Americas
Recognizing
the impact of international trade on the peoples of the Americas,
Recognizing
that international trade is not only a matter of interest to corporations
but impacts also on employment, income, standard of living and the
welfare of the population, and
Considering
that national legislatures are the legitimate representatives of
the interests of the population,
Recommend
that national legislatures of the Americas have decisive participation
in the development of trade agreements of any nature.
Transparency:
Convinced
of the need for a permanent commitment to transparency and to increasing
and sustained communication with civil society, and
Noting
the decision to make public the preliminary draft text of the FTAA
Agreement after the Third Summit of the Americas,
We
Parliamentarians of the Americas
Call
on our governments to ensure that civil society has a clear perception
of the development of the FTAA negotiating process and to consider
the regular publication of the draft text of the FTAA Agreement.
Market
Access:
Recognizing
the value of a rules-based multilateral and regional trading system,
and
Concerned
with unilateral actions not in accordance with international trade
rules, which privilege local or domestic interests,
We
Parliamentarians of the Americas
Call
on our governments to avoid unilateral policies or measures that
limit market access and adversely affect international trade and
investment, and
Recommend
that the FTAA negotiating process establish clear, transparent,
and effective rules to prevent protectionist trade practices and
facilitate trade in the hemisphere.
Agriculture:
Cognizant
of the utmost importance of Agriculture for most countries in the
Hemisphere, and
Recognizing
the particular vulnerability, sensitivity, and structural difficulties
of the agricultural sectors in developing countries,
We
Parliamentarians of the Americas
Recommend
that the development needs of countries be taken into account and
made an integral part of the FTAA negotiations in Agriculture, including
traditional methods of farming, food security, and rural development;
Recommend
the elimination of agricultural export subsidies and other trade-distorting
practices for agricultural products affecting trade in the hemisphere;
and
Recommend
that sanitary and phytosanitary measures not be applied in a manner
that would constitute a means of arbitrary or unjustifiable discrimination
between countries or a disguised restriction to international trade.
Investment:
Recognizing
the complex political and technical issues in the area of investment,
including definition of investment, expropriation, performance requirements
and investor-state dispute settlement mechanisms,
We
Parliamentarians of the Americas
Consider
that the rule of law is the best guarantee for foreign direct investment,
and
Recommend
that the FTAA negotiating process establish transparent, just, stable,
and predictable conditions, particularly for foreign direct investment,
to prevent the possibility of using provisions or interpretation
of provisions in trade agreements to pursue frivolous lawsuits against
national governments.
Intellectual
Property:
Certain
that ownership and policies for the use of natural and cultural
resources are part of the sovereign rights of each of the countries
in the hemisphere,
We
Parliamentarians of the Americas
Recommend
that the FTAA negotiating process take into account all the concerns
of countries in issues of intellectual property related to access
to genetic resources, indigenous and traditional knowledge, and
the right of each country to protect public health and access to
medicines for all.
Services:
Acknowledging
that services constitute a key sector for the economies of the hemisphere,
and
Aware
of the complexities and breadth of the different sectors covered
in services trade negotiations,
We
Parliamentarians of the Americas
Recommend
that the FTAA negotiating process take into account all the concerns
of countries, in particular those related to public and/or sensitive
services such as health and education, which are closely linked
to national and cultural identity.
Smaller
Economies:
Aware
of the differences in the level of development and size of the economies
in the hemisphere and the challenges that a process like the FTAA
represents to all participating countries, and
Believing
that economic integration cannot be fully realized without fair
trade rules that take into account the level and differences in
the level of development and size of the economies,
We
Parliamentarians of the Americas
Recommend
that smaller economies receive the treatment that they require to
ensure their full participation in the negotiations for the construction
of the FTAA, including consideration of cooperation mechanisms.
Sub-regional
Trade Agreements and WTO Consistency:
Aware
of the numerous trade agreements in force and ongoing negotiations
in the hemisphere and the need for consistency with rules and disciplines
of the WTO,
We
Parliamentarians of the Americas
Call
on our governments to avoid provisions that are inconsistent with
WTO rules and disciplines, and ensure that an eventual FTAA Agreement
can coexist with existing sub-regional and bilateral trade agreements.
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