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

Working Group III: The Free Trade Area of the Americas Negotiations

Chaired by John Godfrey, Canadian Member of Parliament

Mr. Peter E. Kirby participated as speaker and presented the document "Update on the Free Trade Area of the Americas (FTAA) process, including recent developments in the FTAA negotiations." This document served as a basis for the discussions of the Working Group that covered a wide range of topics from the draft FTAA Agreement published after the Seventh Meeting of Ministers of Trade held in Quito in November 2002.

The Working Group reaffirmed the Recommendations on the FTAA agreed upon by FIPA at its Inaugural Meeting held in Ottawa in 2001 and at the 1st Plenary Meeting held in Mexico City in 2002. The Working Group drew particular attention to the following recommendations:

-That the Free Trade Area of the Americas be based on a convergence of political, economic and social values and effectively contribute to raising the standards of living of the people, ensuring equal opportunities, and improving the distribution of wealth and democracy;

-That Parliaments, as representatives of people in the Americas, play a key, effective and active role in the negotiations and signing of international trade agreements;

-That the development needs of countries be taken into account and made an integral part of the FTAA negotiations in Agriculture, including recognition of the particular vulnerability, sensitivity, and structural difficulties of the agricultural sectors in developing countries;

-The elimination of agricultural export subsidies and other trade-distorting practices for agricultural products affecting trade in the hemisphere;

-That the FTAA negotiations take into account the interest and concerns of different sectors of society, the need for a permanent commitment to transparency and to increasing and sustained communication with civil society;

-That the FTAA establish clear, transparent, and effective rules to address and prevent unilateral and/or protectionist trade practices under a rules-based trading system;

-That the FTAA negotiations 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;

-That differences in the level of development and size of the economies in the hemisphere are taken into account in the FTAA and that smaller economies receive the treatment that they require to ensure their full participation and benefit in the FTAA;

In addition to the oral recommendations and proposals introduced during the debate by different delegations, the Group took note of 6 written recommendations submitted by Congresswoman Patricia Gutiérrez from Colombia, Senator Raymundo Cárdenas from Mexico, Congressman Nathan Jorge Sevilla Gómez from Nicaragua, Congressman Jaime Vázquez Castillo from Mexico and Congresswoman Silvia Álvarez and Congressman Francisco Patiño from Mexico.

RECOMENDATIONS CONCERNING PARLIAMENTARY PARTICIPATION IN THE FTAA PROCESS THROUGH FIPA

Aware that the final and critical phase of the FTAA negotiations has already started;
Concerned with the experiences and implementation of trade agreements that are in force in the Hemisphere;
Convinced of the need to build on the recommendations already adopted by FIPA and to follow up on these recommendations with specific actions,
We Parliamentarians of the Americas

Recommend that the Executive Committee of FIPA undertake the following initiatives:

1) Establish a section in the Virtual Parliament of the Americas web site to facilitate the exchange of information regarding the negotiation and implications of trade agreements. This web site should provide Parliamentarians with information, documents and links to Internet sites on the FTAA negotiations and to conduct discussions or informative sessions on issues relevant to the negotiations.

2) Prepare and distribute in advance of the next Plenary meeting of the FIPA a document to follow up on each of the previous recommendations on the FTAA and keep track on the results or any progress achieved on the issues agreed by the Parliamentarians.

3) Explore mechanisms to benefit from experiences and concerns arising from trade agreements that have already entered into force, such as NAFTA or other bilateral trade agreements existing in the Americas signed by Canada, Chile, Costa Rica and Mexico, among others.

4) Study the system adopted by the Brazilian Parliament as a model mechanism to monitor and actively participate in the FTAA negotiations at the national level and request that Heads of delegation of countries represented at this Second Plenary Meeting provide existing information or notify the Executive Committee of FIPA on the adoption in the future of similar mechanisms in their countries. Such information will then be posted on the new FTAA section of the Virtual Parliament web site.

5) Establish a mechanism for FIPA to interact formally with the Trade Ministers in the context of the FTAA process and keep track of the negotiations. The "Parliamentary Conference on the WTO" adopted by the Inter-Parliamentary Union (IPU) provides a useful model of how such interaction might work at the hemispheric level.

6) Submit a formal communication on behalf of FIPA directed to the FTAA Co-Chairmanship of Brazil and the United States to be considered by the FTAA negotiations covering the following issues:

- Indicate our concerns regarding the potential benefits and negative effects that the FTAA may have in our countries considering the difference in level of development and size of the economies and inequality prevailing in the Americas;

- Consider other integration arrangements models such as the European Union where Social Cohesion Funds were available to guarantee the effective participation and benefit of all FTAA countries;

- Address Agricultural issues in the FTAA negotiations taking into account the particular vulnerability and sensitivity of Agricultural issues for all FTAA countries and the need to eliminate agricultural subsidies and other trade distorting practices;

- Take into account the particular needs and conditions of all countries when setting deadlines for implementation of the FTAA Agreement.

7) Discuss with the FTAA Co-Chairs potential mechanisms to provide input from FIPA to the FTAA negotiations on the implementation and further development of the Hemispheric Cooperation Program (HCP) under the FTAA, in particular with respect to social adjustment funds for the agricultural and manufacturing sectors.

Further, recommend that the FTAA consider the creation of a special fund within the HCP for professional education, science and technology to provide developing countries with scientific and technological capabilities that will allow them to catch up with developed countries and effectively contribute to economic development and a better economic integration of the FTAA countries.