Inter-Parlamentary Forum of the Americas Forum Interparlamentaire des Amériques Foro Interparlamentario de las Américas Fórum Interparlamentar das Américas

Working Group 4 - Free Trade Area of the Americas Negotiation Process

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.