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Case Number: 2009-1155-F
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Folder Title:
Latin America- Santiago - Summit of Americas - Trade [1]
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DOCUMENT NO.
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001. talking points
Re: Civil Society/Labor and Environment (5 pages)
ca. 04/1998
P1/b(1)
002. talking points
Re: Global Electronic Commerce (3 pages)
04/07/1998
P1/b(1)
003. paper
U.S. Position for the Third Free Trade Area of the Americas
02/03/1998
P1/b(1)
Preparatory Committee Meeting [cover only] (1 page)
004. list
Attachement F: Illustrative List of Concrete Progress Measures (3
02/10/1998
P1/b(1)
pages)
005a. presentation
FTAA Business Facilitation - Proposal for actions to be implemented
ca. 02/1998
P1/b(1)
before Year 2000 (3 pages)
005b. paper
Re: Costa Rican FTAA Business Facilitation Proposal (3 pages)
ca. 02/1998
P1/b(1)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D.C.
20508
USTR Press Releases are available on the USTR home page at WWW.USTR.GOV.
They are also available through the USTR Fax Retrieval System at 202-395-4809.
98-32
FOR IMMEDIATE RELEASE
Contact:
Jay Ziegler
Friday, March 20, 1998
Helaine Klasky
Christine Wilkas
(202) 395-3230
www.ustr.gov
STATEMENT BY U.S. TRADE REPRESENTATIVE CHARLENE BARSHEFSKY
REGARDING FTAA TRADE NEGOTIATIONS
United States Trade Representative Charlene Barshefsky today announced that the Fourth FTAA
Trade Ministers provided a solid foundation for a comprehensive and successful launch of
substantive negotiations at the Santiago Summit. Following the meeting of Trade Ministers
representing thirty-four countries, Ambassador Barshefsky issued the following statement:
"The United States achieved all of its key objectives here, setting the stage for a comprehensive
and successful launch of substantive negotiations at the Santiago Summit. We have set a strong
foundation for negotiations and we have made important progress on labor and environmental
issues with the FTAA. Keep in mind the central fact behind this effort: Our market is open to
other countries' products other countries' markets should be open to ours. The average tariff
in the rest of Latin America is four times as high as ours.
"Our efforts in Costa Rica move us an important step forward toward the President's and other
leaders' vision of a hemispheric free trade agreement by 2005. An open and fair trading system in
this hemisphere will benefit American workers, companies, and consumers.
"The United States, led by President Clinton, has been the driving force for open markets in our
Hemisphere and around the world. In the FTAA, the Hemisphere looks to us for leadership. We
will continue to play a central leadership role, and the San Jose outcomes reflect this fact.
Specifically, today's meeting cements a number of critical U.S. objectives:
"Establishing Miami as the negotiating center for the first three years of FTAA
negotiations. Miami was not only the site for the first leaders' meeting, it is also the hub
for the United States' trade with Latin America.
"Ensuring U.S. leadership throughout the entire negotiation period, with the United States
co-chairing with Brazil the FTAA process during the crucial closing period of the
negotiations.
"Establishing, for the first time ever, a committee to expand the involvement of
environmental, labor and academic groups and to examine these issues within the FTAA
process itself. This is a major step forward and clearly establishes that all stakeholders will
have direct access to the FTAA process, through ministerial consideration of all views.
"Creating nine working groups for trade negotiations which play to America's strengths,
including agriculture, market access, services, and, importantly, intellectual property
rights.
"We now have a formula that provides in a single undertaking the framework for one final,
comprehensive deal that gives the United States leverage to break down the most
pernicious trade barriers in the region.
"Recommitting FTAA countries to make concrete process by the year 2000. Specifically,
Ministers called for agreements on business facilitation in such areas as customs
procedures, professional services, and IPR by the turn of the century.
"Building an awareness of the importance of duty free cyberspace. We have established
an expert government-private sector working group that will make recommendations at
our next FTAA meeting. We continue to pursue this agenda simultaneously in the WTO,
where the largest players have signed on to our approach."
-30-
FTAA Negotiation Framework, Page Two
Negotiating Groups for the first 18 months
(May 1988 - October 1999)
Negotiating Group
Presidency
Vice-Presidency
Market Access
Colombia
Bolivia
Investment
Costa Rica
Dominican Republic
Services
Nicaragua
Barbados
Government Procurement
United States
Honduras
Dispute Settlement
Chile
Uruguay-Paraguay
Agriculture
Argentina
El Salvador
Intellectual Property
Venezuela
Ecuador
Subsidies, Antidumping,
Brazil
Chile
and Countervailing Duties
Competition Policy
Peru
Trinidad and Tobago
Participation of Civil Society in FTAA
Environment, Labor, and
Chair TBD
Academic Issues
Committee
Electronic Commerce
Expert Committee on
CARICOM
Electronic Commerce
Presidency and Vice-presidency of the Consultative Group on
Smaller Economies for the first period of 18 months
(May 1998 - October 1999)
Smaller Economies
Jamaica
Guatemala
IV MEETING OF MINISTERS RESPONSIBLE FOR TRADE
San José, Costa Rica
March 19, 1998
Negotiation Sites
May 1998-
March 2001-
March 2003-
February 2001
February 2003
December 2004
Miami, Florida
Panama
Mexico City, México
Presidencies of the FTAA Negotiation Process
May 1998-
November
May 2001-
November 2003-
October 1999
1999-
October 2002
December 2004+
April 2001
Canada
Argentina
Ecuador
Co-presidency
between Brazil
and United States*
(Argentina - - Vice
(Ecuador - - Vice
(Chile - Vice
Presidency)
Presidency)
Presidency)
* - No Vice Presidency 2003-2004
+ - Co-presidency continues thru close of negotiations
Venue of the meetings of the Trade and Negotiating Committee (TNC) for the first
period (May, 1998 - October 1999):
1. Buenos Aires, Argentina
2. Surinam
3. Bolivia
Testimony of Ambassador Richard W. Fisher
Deputy United States Trade Representative
on the Free Trade Area of the Americas
before the
Trade Subcommittee
House Ways and Means Committee
Tuesday, March 31, 1998
Thank you, Mr. Chairman and Members of the Committee. It is a great honor for
me to be here to share with you the progress that we have made in constructing
the Free Trade Area of the Americas (FTAA) and to discuss reasons that it makes
so much sense for us to negotiate the FTAA.
Free Trade Area of the Americas
When President Clinton and his counterparts in the 33 democratic countries in the
Hemisphere met just a little over three years ago in Miami, they recognized that the
prosperity of the XXX million people in our hemisphere depends on continued
growth in trade among us. They also understood that trade would expand only if
we continue to build upon the market opening measures that already were being
undertaken in the Western Hemisphere. They agreed, therefore, to move forward
from the Uruguay Round and to go beyond the existing bilateral and sub-regional
free trade agreements. They committed our countries to a revolutionary vision of
open markets across the continents of North and South America---creating a free
trade area that would raise our standards of living, improve the working conditions
of our peoples and better protect the environment in the Americas.
The Dynamism of the Western Hemisphere
The Miami vision of an entire hemisphere moving cooperatively toward greater
prosperity is being realized. The Western Hemisphere has been a truly dynamic
region over the last three years. It has become the largest regional destination for
U.S. exports of goods -- over 40 percent of total U.S. merchandise exports went to
the region in 1997. U.S. exports to the region grew 17.4 percent last year,
compared to 5.65 percent growth to the rest of the world. These export increases
accounted for two-thirds of U.S. export growth worldwide in 1997. U.S. exports
to Latin America (including Mexico) and the Caribbean in the second half of 1997
exceeded our exports to the European Union. And Mexico surpassed Japan to
become our second largest export market. One of the principal reasons that we are
experiencing this expansion of trade with Latin America is their dramatic
reorientation in trade policy. In some instances the changes in policy are as
revolutionary as those which occurred in Eastern and Central Europe at the
beginning of this decade.
Even as countries in our region have been tested by economic and political
pressures and even as countries in other regions have experienced serious
economic setbacks, the overall course in the Western Hemisphere has been one of
faster economic growth, lower, inflation, expanded opportunities, and growing
confidence in facing the global marketplace. A major reason for this positive record
has been our countries' steadfast and cooperative efforts, striving for more open
trade, greater transparency in economic regulations, increased privatization, sound
macroeconomic policies, and efforts by the private sector to increase its
competitiveness. It is important to continue the forward momentum that has
distinguished this Hemisphere. There is a consensus among the 34 countries that
the FTAA is an essential ingredient in maintaining that momentum.
Americans' Stake in Trade Expansion
Even with this positive outlook in the Americas, however, there continues to be
apprehension among our peoples about the road forward, and there is a lack of
clarity about the benefits that will result from the monumental undertaking that was
envisioned by President Clinton and the other 33 leaders in Miami. It's ironic
bocause our economy today is one of the most prosperous in decades.
Unemployment has fallen to the lowest levels in nearly 25 years. We have created
over 14 million jobs in the last five years. And yet our citizens are still concerned
about the words "Free Trade." The idea of "opening other markets" is too
nebulous. To say that tariffs are four times higher in the rest of the Americas
compared to the United States does not resonate. What does this all mean to your
constituents? Or more importantly, how do we make clear to those with
confidence in our economy that international trade has played an enormous role in
our economic expansion? Thirty-eight percent of our GDP growth in the last five
years has come from exports. If we had given up on trade five years ago, how
much of that thirty-eight percent would we have given up?
The people of America have one overriding concern, even in our booming economy:
How can I ensure my family's financial security? For over 60 million Americans,
their financial security is directly tied to their ownership of America's companies.
This is as true for blue-collar workers and farmers as it is for white-collar computer
experts. It applies to women as well as men, and to people of all races. The
growth and security of their pension funds, their Individual Retirement Accounts,
their Thrift Savings Plans, their 401K accounts, and their other mutual fund
holdings all depend upon the earnings of companies competing in the global
marketplace. To generate those earnings, companies have to grow. In order to
grow, they need to expand their businesses and increase their sales in real terms.
And that requires expanding markets and expanding the volume of exports of goods
and services into the future to maintain and increase the prosperity we know today.
09:36
10:63
NOC
FROM:ROONEY,
rage 4
within the FTAA, and playing a central leadership role in the FTAA. As a result of
the San Jose Ministerial, there will be a real negotiation launched by the Leaders in
Santiago on April 18-19. The San Jose Declaration is comparable to the 1986
Punta del Este Declaration that initiated the Uruguay Round negotiations. The
United States will provide the venue for the negotiating groups and the
administrative secretariat supporting those meetings for the first three years in
Miami. A structure with leadership determined through end of negotiations in 2005
was established, with the United States serving as one of the co-chairs during the
endgame of the negotiations. Canada, our neighbor, will be the Chair of the overall
process for the first 18 months. The United States will chair, along with Brazil, for
the final two years of the negotiations. The Chairman of the overall FTAA process
will head both the Ministerial and the Trade Negotiations Committee (TNC), which
will provide the overall direction and management to the negotiations. The
Ministers, confident that their Leaders will approve the negotiating plan forthwith at
their Summit meeting, set the date for the TNC's first meeting for no later than
June 30, 1998. The TNC will be comprised of the 34 Vice Ministers for Trade.
The Ministers decided to start with nine negotiating groups, which cover all the
areas identified by the Leaders at their Miami meeting in 1994, thus beginning
negotiations simultaneously in all these substantive areas. They also recognized
that this structure will be changed over time; they indicated that the negotiating
structure would be flexible so that it could be modified over time as required to
ensure continued positive progress in the negotiations. Again, we were able to
reach consensus on setting a date for the initial meetings of the Negotiating Groups
-- no later than September 30, 1998.
We also were able to achieve the establishment of a Committee on Electronic
Commerce, comprised of both government and private sector experts, to make
recommendations on how to increase and broaden the benefits to be derived from
the electronic marketplace. For the first time in the FTAA process, we have a
created a joint government-industry group. This is in keeping with one of President
Clinton's main principles in this area, having the private sector lead in developing
the rules of global electronic commerce. This expert committee will look at the
range of issues in this area and then report back to Ministers with
recommendations on the approach that should be taken.
Of course, the electronic medium is not a new subject for the FTAA. Throughout
the preparatory stage of the FTAA, we have used the Internet to provide greater
transparency to the process. The FTAA Homepage (www\alca-ftaa.org) includes all
of the final products of the FTAA Working Groups---in all four official languages of
the hemisphere.
One of the greatest threats to hemispheric integration is not the difficulty of the
negotiations but the apprehension of our respective civil societies about the process
4
MAR-27-1998 09:36 TO:83 NSC
FROM:ROONEY,
of negotiation. The 34 Ministers were highly cognizant of this fact at the meeting
last week. Thus, for the first time in any large trade negotiation, we have created a
Committee on Civil Society. This is a major step forward in the FTAA process.
The Committee will be comprised of government representatives. They will receive
input at the hemispheric level directly from labor, environmental, business,
academic and other non-governmental interests, analyze that advice, and then
provide recommendations directly to the Ministers. We expect the organizational
details of this committee to be worked out at the first meeting of the TNC this
June. Establishing such a committee ensures that all stakeholders will have direct
access to the FTAA process, with Ministerial consideration of their views. There is
now a recognition that there has to be a process related to labor and environmental
issues that ensures transparency in the FTAA negotiations and allows for the views
of all members of civil society into those negotiations.
Principles and Objectives of the Negotiations
In addition to transparency during the negotiations, another key principle we
achieved for the negotiations is that the FTAA would not simply add yet another
set of rules for business to contend with. We reached consensus that the bilateral
and sub-regional agreements (such as MERCOSUR and the Andean Community) can
coexist with the FTAA only to the extent that the rights and obligations under
those agreements are not covered by or go beyond those of the FTAA. The FTAA
will provide a single set of rules throughout the hemisphere.
In addition, we agreed that the FTAA should improve upon the WTO rules and
disciplines, wherever possible and appropriate. In this way, we will ensure that we
reach a final comprehensive deal that breaks down the most serious trade barriers
in the region and does not merely reiterate the accomplishments attained at the end
of the Uruguay Round. We aim for the FTAA Agreement to be a balanced,
comprehensive, state-of- the-art Agreement. The outcome of the negotiations will
be a "single undertaking", in the sense that signatories to the final FTAA
Agreement will have to accept all parts of it and cannot pick and choose among the
obligations to which they will adhere.
Among the most important objectives from the standpoint of the United States are:
To progressively eliminate tariffs, non-tariff barriers, as well as other
measures with equivalent effects, which restrict trade. Especially, to bring
under greater discipline trade-distorting practices for agricultural products,
including those that have effects equivalent to agricultural export subsidies.
To promote customs mechanisms and measures that ensure operations are
conducted with transparency, efficiency, integrity, and accountability.
5
MAR+27-1998
09:36
70:83
MSC
FROM:ROONEY,
To develop an efficient and transparent system of rules of origin, including
nomenclature and certificates of origin.
To eliminate and prevent unnecessary technical barriers to trade.
To liberalize trade in services to achieve hemispheric free trade under
conditions of certainty and transparency.
To ensure adequate and effective protection of intellectual property rights,
taking into account changes in technology.
To guarantee that the benefits of FTAA liberalization process are not
undermined by anti-competitive business practices.
To establish a fair and transparent legal framework for investment and
related flows.
To make our trade liberalization and environmental policies mutually
supportive.
To further secure the observance and promotion of worker rights, renewing
FTAA countries' commitments to the observance of internationally
recognized core labor standards.
Santiago Summit
There is within Latin America a golden opportunity to build upon this progress and
make clear that the entire hemisphere is committed to free and open markets. The
Santiago Summit is a perfect forum for doing so.
The Leaders will give impulse to the negotiations, which will conclude by December
31, 2004, with concrete progress by the end of the century. We expect them to
approve the San Jose negotiating plan, which includes a mandate that the
Negotiating Groups achieve considerable progress by the year 2000, including
agreeing on measures for adoption before the end of the century.
Conclusion
It is with great determination, optimism and excitement that we and our 33 trading
partners in this Hemisphere have recommended the commencement of negotiations
on the Free Trade Area of the Americas at the Santiago Summit this April 18-19.
We have come a long way together. Taken as a whole, the progress toward the
FTAA is astounding. Small countries, large countries, island countries, countries of
6
MAR-27-1998 09:36 TO:83 - NSC
FROM: BOONEY, A.
P.9.9
varied languages and backgrounds have come together to work toward an
agreement that will ultimately bring the benefits of trade to all the people of the
Hemisphere. We have learned more about each other -- our economies, our
aspirations, our fears, and, most important, our mutual commitment to improving
the lives of our citizens. This commitment is what brought the Leaders of the
Hemisphere to Miami in December 1994. It is the reason that they will announce
the initiation of the negotiations in Santiago in two and a half weeks, and it is what
will bring us to completion of the negotiations by 2005.
We certainly are grateful to you, Mr. Chairman, and to the members of this
sub-committee for the support that you have given us during this process. We look
forward to consulting closely and frequently with you and your colleagues in the
Congress as we move forward with the FTAA. Once again, I appreciate this
opportunity to report to you on the progress that we have made to date and on the
steps that we plan to take in the immediate future.
Thank you, Mr. Chairman. I am willing to answer any question you or the
distinguished members on this Committee may have of me with regard to the
FTAA.
7
THE WHITE HOUSE
Office of the Press Secretary
(Santiago, Chile)
For Immediate Release
April 19, 1998
FACT SHEET
PROSPERITY AND FREE TRADE AT THE SANTIAGO SUMMIT
After addressing second-generation reforms in education,
governance, democracy and poverty alleviation, the leaders
turned to trade, financial stability, information technology,
energy and transportation. Economic growth and integration in
the Americas will profoundly effect the prosperity of the United
States in the 21st century. Consider the following:
In the last four years, exports have generated more than one-
third of US economic growth.
US exports to our Western Hemisphere partners grew by $42
billion last year, accounting for nearly two thirds of US
export growth worldwide.
US exports to the region grew three times faster last year
than exports to the rest of the world.
US exports to Latin America and the Caribbean in the second
half of 1997 exceeded US exports to the European Union
countries.
To continue the economic liberalization and integration of the
hemisphere, and to make sure no citizen is left behind in the
new global economy, the Summit leaders agreed to the following:
Launch of the Free Trade Area of the Americas: Advancing US
Priorities and Making Sure Trade Benefits Everyone
At the Summit, the 34 leaders agreed to launch negotiations to
create a Free Trade Area of the Americas -- a thriving market of
800 million people from Alaska to Argentina. Since the 1994
Miami Summit, the trade ministers of the Summit nations have
been laying the groundwork for the launch today of formal
negotiations -- to deliver concrete progress by the year 2000
and conclude the agreement by 2005.
2
Leaders agreed on specific principles, goals and procedures for
FTAA negotiations:
There will be nine initial negotiating groups covering U.S.
priority issues: market access, investment, services,
government procurement, dispute settlement, agriculture,
intellectual property rights, competition policy, and
subsidies, anti-dumping and countervailing duties.
The United States will work to progressively eliminate tariffs
and other measures that restrict trade; to promote customs
mechanisms that ensure that trade is conducted with
transparency, efficiency, integrity and accountability; to
strengthen protection of intellectual property rights; and to
develop disciplines curbing anti-competitive business
practices.
A Committee on Electronic Commerce -- composed not just of
government officials but also of private sector experts --
will recommend a work plan to promote rules for electronic
commerce in the hemisphere.
A Committee on Civil Society will -- for the first time in any
trade negotiation -- provide a formal mechanism for labor and
environment groups and other non-government organizations to
make recommendations on shaping the globalization process --
so that all citizens can benefit from trade.
Miami will be the site of the negotiating groups and the
administrative secretariat of the FTAA for the first three
years.
Canada will chair the effort for the first 18-month period.
The United States and Brazil will co-chair for the last two
years of the negotiations.
In addition, governments will cooperate to promote core labor
standards recognized by the International Labor Organization.
The IDB and World Bank will devote $307 million over the next
three years and USAID $15 million to programs designed to
strengthen respect for core labor standards and modernize the
capacities of labor ministries.
Cooperation to Strengthen Financial Systems and Sustain Growth
3
One month after the Miami Summit, the Mexican peso crisis hit.
Instead of turning inward, the nations of the hemisphere
embraced greater openness: They took needed measures to make
their financial systems more resilient, standing them in good
stead to weather the recent turbulence from Asia. The average
inflation rate in Latin America fell to less than 10% last year,
compared with 61% in 1994, and more than 200% in 1990. National
savings rates last year averaged nearly 18% of GDP - 20% higher
than in 1990. To deepen these reforms, the Summit leaders
agreed to:
Strengthen banking supervision in the hemisphere, including by
adopting the Basel Core Principles for Effective Banking
Supervision -- the first region to embrace this commitment.
Establish sound reporting and disclosure standards. Already,
seven countries in the region have signed on to the
International Monetary Fund's Special Data Dissemination
Standard to help investors make well-informed decisions.
Improve banking and securities market clearance and settlement
systems in the hemisphere in order to facilitate the
transparency, efficiency and security of domestic and cross-
border transactions.
Sustaining Growth through Information Technology,
Infrastructure, Energy and Anti-Corruption Measures
The Summit participants agreed to additional measures to ensure
economic growth and integration:
Information Technology: Recognizing the importance of
information technology in the 21st century, leaders pledged
cooperative efforts to develop the hemisphere's electronic
infrastructure. These efforts complement President Clinton's
Framework for Global Electronic Commerce. This initiative
promotes private-sector led development of a Global Information
Infrastructure, which will facilitate use of the Internet for
every aspect of daily life -- social, economic, political,
health. Leaders undertook the following commitments:
In an important first step, established with the private
sector, Inter-American Development Bank and World Bank, the
Internet site Americas-edu.org to enhance distance learning
and provide educational services and content for the people of
the Americas.
4
To strengthen the capacity of nations to benefit from the
knowledge-based global economy by promoting, among other
actions, telecommunications as a central focus of national and
regional integration.
To work with the private sector to rapidly expand
telecommunications networks and adopt strategies to make basic
telephone service and the Internet accessible to all.
To work with the private sector to develop applications for
electronic networks that take into account differing socio-
economic conditions and languages and that support education,
health, agriculture and electronic commerce.
Infrastructure: To facilitate the public-private partnerships
that will build the bridges, roads, and ports tying the
economies of the Americas together, the Inter-American
Development Bank will establish standards aimed at ensuring fair
competition among contractors.
Energy: To fuel the growth of the Americas while protecting the
environment -- especially addressing climate change -- the
Summit nations will further the integration of hemispheric
energy markets, encourage movement to clean energy systems and
promote honest and efficient energy regulation.
Corruption. Twenty-three countries have signed and eight
countries have already ratified the OAS Anti-Corruption
Convention, which requires nations to outlaw bribes, as the
United States already does. President Clinton has submitted the
Convention to the United States Senate for ratification.
Building on the Convention, the Summit nations agreed to develop
effective measures to combat all forms of corruption, bribery,
and related unlawful practices in commercial transactions and to
promote domestic legislation to oblige senior public officials
to declare their personal assets and liabilities.
# # #
03/23/98
16:24
202 3959675
IAPL/USTR
1
002/014
Ministerial Declaration of San José
SUMMIT OF THE AMERICAS
FOURTH TRADE MINISTERIAL MEETING
SAN JOSE, COSTA RICA
MARCH 19ᵗʰ, 1998
1. INTRODUCTION
1. We, the Ministers Responsible for Trade, representing the 34 countries which
participated in the Summit of the Americas, in Miami, in December 1994, met
at the IV Ministerial Meeting on Trade in San José, Costa Rica to review the
results of the preparatory work for the negotiations of the Free Trade Area of
the Americas (FTAA) with the intent to recommend to our Heads of State and
Government the initiation of the negotiations.
2. We note the progress achieved in trade liberalization in this Hemisphere since
the Miami Summit of the Americas as a result of the implementation of the
obligations assumed by our Governments in the context of the Uruguay Round
of Multilateral Trade Negotiations and of the World Trade Organization (WTO);
the widening and deepening of existing sub-regional and bilateral integration
and free trade agreements; the signing of new agreements; and the unilateral
trade liberalization measures adopted by some countries. Even as countries in
our region have been tested by financial and other economic pressures, the
overall course in the Americas has been one of faster economic growth, lower
inflation, expanded opportunities, and confidence in participating in the global
marketplace. A major reason for this positive record has been our countries'
steadfast and cooperative efforts to promote prosperity through increased
economic integration and more open economies. We are confident, therefore,
that the FTAA will improve the well being of all our people.
3. With the intent of contributing to the expansion of world trade, we reaffirm our
commitment that the FTAA shall not raise additional barriers to other
countries, and we will continue to avoid to the greatest extent possible the
adoption of policies that adversely affect trade in the hemisphere.
4. Furthermore, we reiterate that the negotiation of the FTAA shall take into
account the broad social and economic agenda contained in the Miami
Declaration of Principles and Plan of Action with a view to contributing to
raising living standards, to improving the working conditions of all people in the
Americas and to better protecting the environment.
5. In designing the FTAA W8 shall take into account differences in the levels of
development and size of the economies in our Hernisphere, to create
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opportunities for the full participation of the smaller economies and to increase
their level of development.
6. We recognize the wide differences in the level of development and size of
economies existing in our Hemisphere and we will remain cognizant of these
differences as we work to ensure their full participation in the construction of
the FTAA.
7. We reviewed and approved the work submitted to us by the Preparatory
Committee of Vice-Ministers on how to proceed with the negotiations of the
FTAA.
II. INITIATION OF THE NEGOTIATIONS
8. We recommend to our Heads of State and Government that they initiate
negotiation of the FTAA during the и Summit of the Americas, which will be
held in Santiago, Chile, on April 18 and 19, 1998, in accordance with the
objectives, principles, structure, venue and other decisions set forth in this
Declaration.
9. We reaffirm the principles and objectives that have guided our work since
Miami, as set out in Annex I, including inter alia that the agreement will be
balanced, comprehensive, WTO-consistent, and will constitute a single
undertaking. It will take into account the needs, economic conditions and
opportunities of the smaller economies. The negotiations will be transparent
and built on consensus decision making. The FTAA can co-exist with bilateral
and sub-regional agreements, to the extent that the rights and obligations
under these agreements are not covered or go beyond the rights and
obligations of the FTAA. We remain committed to concluding the negotiations
no later than 2005 and to achieving concrete progress toward the attainment of
this objective by the end of the century.
III. STRUCTURE AND ORGANIZATION OF THE NEGOTIATIONS
10. We have agreed to an initial structure for the negotiations. This structure is
flexible and we expect to modify it over time as required to assist the
negotiations. We will exercise the ultimate oversight and management of the
negotiations and therefore we will meet as required and no less than every 18
months. We establish the Trade Negotiations Committee (TNC) at the Vice-
ministerial level. The TNC will have a Chairman and a Vice-Chairman. The
TNC will select the Chairman and Vice Chairman of each negotiating group.
The TNC will have the responsibility of guiding the work of the negotiating
groups and of deciding on the overall architecture of the agreement and
institutional issues. The TNC is to take the overall responsibility of ensuring the
full participation of all the countries in the FTAA process. It will also ensure
that this issue, in particular the concerns of the smaller economies and
concerns related to countries with different levels of development will be dealt
with within each negotiating group. The TNC should meet as required and no
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less than twice a year. It should hold its first meeting no later than the 30th of
June, 1998.
11. We establish 9 negotiating groups on : market access; investment; services;
government procurement; dispute settlement; agriculture; intellectual property
rights; subsidles, antidumping and countervailing duties; and competition
policy. The Chairman and Vice-Chairman of each group will be selected taking
into account the need to maintain geographic balance among countries. They
will serve for a period of 18 months or until the subsequent ministerial meeting.
As a general principle, there should not be immediate reelection of the Chair
and Vice-chair. This principle establishes a presumption against immediate
reelection, but should not be inflexibly applied. The negotiating groups will be
guided in their work by the general principles and objectives in Annex I as well
as specific objectives in Annex II. We mandate the TNC in its first meeting to
develop a work program for the negotiating groups in order to ensure that they
begin their work no later than the 30ᵗʰ of September, 1998. We have agreed
that the meetings of the negotiating groups will be held in a single venue which
will rotate among the following three countries:
Miami, United States:
From May 1. 1998 to February 28, 2001
Panama City, Panama:
From March 1, 2001 to February 28, 2003
Mexico D.F., México:
From March 1, 2003 to December 31, 2004
The period for which Mexico hosts the venue of the negotiations will be up to
the conclusion of the negotiations.
The countries that will have the Chair and Vice-Chair of the negotiating groups
for the first 18 month period will be the following:
Negotiating Group
Chair
Vice-Chair
Market Access
Colombia
Bolivia
Investment
Costa Rica
Dominican Republic
Services
Nicaragua
Barbados
Government Procurement
United States
Honduras
Dispute Settlement
Chile
Uruguay-Paraguay
Agriculture
Argentina
El Salvador
Intellectual Property Rights
Venezuela
Ecuador
Subsidies, Antidumping and
Brazil
Chile
Countervailing Duties
Competition Policy
Peru
Trinidad and Tobago
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Work in different groups may be interrelated, such as agriculture and market
access; services and Investment; competition policy and subsidies,
antidumping and countervailing duties; among others. The TNC shall identify
linkages and outline appropriate procedures to ensure timely and effective
coordination. We agree to give the mandate to the relevant negotiating groups
to study issues relating to: the interaction between trade and competition
policy, including antidumping measures; market access and agriculture, in
order to identify any areas that may ment further consideration by us. The
groups involved will report their results to the TNC no later than December
2000. This is without prejudice to decisions made by the TNC to dissolve,
establish or merge groups. Likewise, the negotiating groups may establish ad-
hoc working groups.
Chairmanship of the FTAA
12. The Chairmanship of the FTAA process will rotate among different countries at
the end of each Ministerial Meeting. The country that will chair the FTAA
process will host the Ministerial Meetings and will also chair the TNC.
The countries that will hold the Chair and Vice-chair of the FTAA process will
be:
May 1, 1998-
Nov. 1, 1999-
May 1, 2001-
Nov. 1, 2002-
Oct. 31, 1999
April 30,2001
Oct. 31, 2002
Dec. 31, 2004
Chair
Canada
Argentina
Ecuador
Co-chair
between
Vice-chair
Argentina
Ecuador
Chile
Brazil and the
United States of
America
The period in which the United States of America and Brazil exercise the Co-
chairmanship will be until the conclusion of the negotiations.
In the last period, from November 1st, 2002 to December 31ˢᵗ, 2004, there will
be at least two Meetings of Ministers Responsible for Trade, one in each Co-
chair country.
In the first 18 month period, three meetings of the TNC will be held, one in
each of the following countries: Argentina, Suriname and Bolivia. In the
second 18 month period, from November 1, 1999 to April 30, 2001, the first
meeting will be held in Guatemala will hold the first meeting of the TNC.
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Consultative Group on Smaller Economies
13. We have agreed to establish a Consultative Group on Smaller Economies,
open to the participation of all the FTAA countries, and reporting to the TNC.
For the first period, the Chair will be Jamaica with Guatemala serving as Vice-
chair. Succession criteria will be the same as those applying to the negotiating
groups. The Consultative Group will have the following functions:
a) follow the FTAA process, keeping under review the concerns and
interests of the smaller economies; and will
b) bring to the attention of the TNC the issues of concern to the smaller
economies and make recommendations to address these issues.
Administrative Secretariat for the Negotiations
14. We have agreed to create an Administrative Secretariat for the negotiations,
which will conclude no later than the year 2005. It will report to the TNC and
will:
a) provide logistical and administrative support to the negotiations;
b) provide translation services for documents and interpretation during the
deliberations;
c) keep the official documents of the negotiation; and
d) publish and distribute documents.
This Administrative Secretariat will be located at the same venue as the
meetings of the negotiating groups. It should be funded from local resources
and existing resources of the Tripartite Committee Institutions. We recommend
our Governments to instruct their representatives in the institutions of the
Tripartite Committee -in particular the Inter American Development Bank- to
allocate appropriate existing resources within their institutions to support the
Administrative Secretariat. The TNC will determine the size and composition of
the staff and will appoint the Head of the Secretariat.
Tripartite Committee
15. We express our appreciation to the Tripartite Committee for the technical and
logistical support given during the preparatory phase of the FTAA negotiation.
We request that the respective institutions of the Tripartite Committee
continue to provide the appropriate existing resources necessary to respond
positively to requests for technical support from FTAA entities, including
reallocation for this purpose if necessary. Furthermore, we ask the three
institutions to provide technical assistance related to FTAA issues to member
countries, particularly smaller economies, at their request, according to the
procedures of the respective institutions.
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16. We also express our appreciation and reiterate our interest, that the pertinent
multilateral, regional and sub-regional institutions continue to offer, in their
areas of recognized specialization, additional contributions in response to
specific requests from the TNC and the negotiation groups.
IV. OTHER ISSUES
Participation of Civil Society
17. We reaffirm our commitment to the principle of transparency of the negotiation
process, to facilitate the constructive participation of the different sectors of
society. We also reaffirm our commitment to the Belo Horizonte Ministerial
Declaration and to paragraph 4 of the Singapore Ministerial Declaration of the
WTO.
We recognize and welcome the interests and concerns that different sectors of
society have expressed in relation to the FTAA. Business and other sectors of
production, labor, environmental and academic groups have been particularly
active in this matter. We encourage these and other sectors of civil societies to
present their views on trade matters in a constructive manner. We have,
therefore, established a committee of government representatives, open to all
member countries, who shall select a chair. The committee shall receive these
inputs, analyze them and present the range of views for our consideration.
In this regard, we value the contributions made by the business sector through
the Business Fora of the Americas of Denver, Cartagena, Belo Horizonte and
San José.
Concrete progress by the year 2000
18. We reaffirm our commitment to make concrete progress by the year 2000.
We direct the negotiating groups to achieve considerable progress by that
year. We instruct the TNC to agree on specific business facilitation measures
to be adopted before the end of the century, taking into account the
substantive work that has already emanated from the FTAA process.
Electronic Commerce
19. We noted the rapid expansion of Internet usage and electronic commerce in
our Hemisphere. In order to increase and broaden the benefits to be derived
from the electronic marketplace, we welcome the offer of Caricom to lead a
joint government-private sector committee of experts that will make
recommendations to us at our next meeting.
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Acknowledgement
20.We wish to express our gratitude to the Government of Costa Rica for its
notable contribution to the advance of the FTAA process during the last year,
by presiding over the deliberations of the Preparatory Committee of the
Negotiations, as well as the IV Meeting of the Ministers Responsible for Trade
in the Hemisphere, which concluded the preparations to initiate the FTAA
negotiations.
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Annex I
GENERAL PRINCIPLES AND OBJECTIVES
The negotiations for the construction of the FTAA will be guided by the following
General Principles and Objectives :
GENERAL PRINCIPLES
a) Decisions in the FTAA negotiating process will be made by consensus.
b) Negotiations will be conducted in a transparent manner to ensure mutual
advantage and increased benefits to all participants of the FTAA.
c) The FTAA Agreement will be consistent with the rules and disciplines of the
WTO. With this purpose, the participating countries reiterate their commitment
to multilateral rules and disciplines, in particular Article XXIV of the General
Agreement on Tariffs and Trade (GATT) 1994 and its Uruguay Round
Understanding, and Article V of the General Agreement on Trade in Services
(GATS)
d) The FTAA should improve upon WTO rules and disciplines wherever possible
and appropriate, taking into account the full implications of the rights and
obligations of countries as members of the WTO.
e) The negotiations will begin simultaneously in all issue areas. The initiation,
conduct and outcome of the negotiations of the FTAA shall be treated as parts
of a single undertaking which will embody the rights and obligations as
mutually agreed upon.
f) The FTAA can co-exist with bilateral and sub-regional agreements, to the
extent that the rights and obligations under these agreements are not covered
by or go beyond the rights and obligations of the FTAA.
g) Countries may negotiate and accept the obligations of the FTAA individually or
as members of a sub-regional integration group negotiating as a unit.
h) Special attention should be given to the needs, economic conditions (including
transition costs and possible internal dislocations) and opportunities of smaller
economies, to ensure their full participation in the FTAA process.
i) The rights and obligations of the FTAA will be shared by all countries. In the
negotiation of the various thematic areas, measures such as technical
assistance in specific areas and longer periods for implementing the
obligations could be included on a case by case basis, in order to facilitate the
adjustment of smaller economies and the full participation of all countries in the
FTAA
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j) The measures agreed upon to facilitate the integration of smaller economies in
the FTAA process shall be transparent, simple and easily applicable,
recognizing the degree of heterogeneity among them.
k) All countries shall ensure that their laws, regulations and administrative
procedures conform to their obligations under the FTAA agreement.
I) In order to ensure the full participation of all countries in the FTAA, the
differences in their level of development should be taken into account.
General Objectives
a) To promote prosperity through increased economic integration and free trade
among the countries of our Hemisphere, which are key factors for raising
standards of living, improving the working conditions of people in the Americas
and better protecting the environment.
b) To establish a Free Trade Area, in which barriers to trade in goods and
services and investment will be progressively eliminated, concluding
negotiations no later than 2005 and achieving concrete progress toward the
attainment of this objective by the end of this century.
c) To maximize market openness through high levels of disciplines through a
balanced and comprehensive agreement.
d) To provide opportunities to facilitate the integration of the smaller economies in
the FTAA process in order to realize their opportunities and increase their level
of development.
e) To strive to make our trade liberalization and environmental policies mutually
supportive, taking into account work undertaken by the WTO and other
international organizations.
f) To further secure, in accordance with our respective laws and regulations, the
observance and promotion of worker rights, renewing our commitment to the
observance of internationally recognized core labor standards and
acknowledging that the International Labor organization is the competent body
to set and deal with those core labor standards.
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Annex И
OBJECTIVES BY ISSUE AREA
We have agreed that the negotiations for the construction of the FTAA, in the
different issue area, will be guided by the following objectives:
MARKET ACCESS
a) Consistent with the provisions of the WTO, including article XXIV of the
General Agreement on Tariffs and Trade (GATT 1994) and its Understanding
on the Interpretation of Article XXIV of the General Agreement on Tariffs and
Trade 1994, to progressively eliminate, tariffs, and non tariff barriers , as well
as other measures with equivalent effects, which restrict trade between
participating countries.
b) All tariffs will be subject to negotiation.
c) Different trade liberalization timetables may be negotiated.
d) To facilitate the integration of smaller economies and their full participation in
the FTAA negotiations.
AGRICULTURE
a) The objectives of the negotiating group on Market Access shall apply to trade
in agricultural products. Rules of origin, customs procedures and Technical
Barriers to Trade issues will be addressed in the Market Access negotiating
group.
b) To ensure that sanitary and phytosanitary measures are not applied in a
manner which would constitute a means of arbitrary or unjustifiable
discrimination between countries or a disguised restriction to international
trade, in order to prevent protectionist trade practices and facilitate trade in the
hemisphere. Consistent with the WTO Agreement on the Application of
Sanitary and Phytosanitary Measures (SPS Agreement), said measures will
only be applied to achieve the appropriate level of protection for human,
animal or plant life or health, will be based on scientific principles, and will not
be maintained without sufficient scientific evidence.
Negotiations in this area involve identifying and developing measures needed
to facilitate trade, following and examining in depth the provisions set down in
the WTO/SPS Agreement.
c) To eliminate agricultural export subsidies affecting trade in the Hemisphere.
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d) To identify other trade-distorting practices for agricultural products, including
those that have an effect equivalent to agriculture export subsidies, and bring
them under greater discipline.
e) Agricultural products covered are the goods referred to in Annex I of the WTO
Agriculture Agreement.
f) Incorporate progress made in the multilateral negotiations on agriculture to be
held according to Article 20 of the Agreement on Agriculture, as well as the
results of the review of the SPS Agreement.
RULES OF ORIGIN
a) To develop an efficient and transparent system of rules of origin, including
nomenclature and certificates of origin, in order to facilitate the exchange of
goods, without creating unnecessary obstacles to trade.
CUSTOMS PROCEDURES
a) To simplify customs procedures, in order to facilitate trade and reduce
administrative costs.
b) To create and implement mechanisms to exchange information in customs
issues among FTAA countries.
c) To design effective systems to detect and combat fraud and other illicit
customs activities, without creating unnecessary obstacles to foreign trade.
d) To promote customs mechanisms and measures that ensure operations be
conducted with transparency, efficiency, integrity and responsibility.
INVESTMENT
a) To establish a fair and transparent legal framework to promotes investment
through the creation of a stable and predictable environment that protects the
investor, his investment and related flows, without creating obstacles to
investments from outside the hemisphere.
STANDARDS AND TECHNICAL BARRIERS TO TRADE
a) To eliminate and prevent unnecessary technical barriers to trade in the FTAA,
based on the proposals contained in the Common Objectives Paper approved
by the Working Group.
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SUBSIDIES ANTIDUMPING AND COUNTERVAILING DUTIES
a) To examine ways to deepen, if appropriate, existing disciplines provided in the
WTO Agreement on Subsidies and Countervailing Measures and enhance
compliance with the terms of the WTO Agreement on Subsidies and
Countervailing Measures.
b) To achieve a common understanding with a view to improving, where possible,
the rules and procedures regarding the operation and application of trade
remedy laws in order to not create unjustified barriers to trade in the
Hemisphere.
GOVERNMENT PROCUREMENT
a) The broad objective of negotiations in government procurement is to expand
access to the government procurement markets of the FTAA countries.
More specifically, the objectives are :
a) To achieve a normative framework that ensures openness and transparency of
government procurement processes, without necessarily implying the
establishment of identical government procurement systems in all countries;
b) To ensure non-discrimination in government procurement within a scope to be
negotiated ;
c) To ensure impartial and fair review for the resolution of procurement
complaints and appeals by suppliers and the effective implementation of such
resolutions.
INTELLECTUAL PROPERTY RIGHTS
a) To reduce distortions in trade in the Hemisphere and promote and ensure
adequate and effective protection to intellectual property rights. Changes in
technology must be considered.
SERVICES
a) Establish disciplines to progressively liberalize trade in services, so as to
permit the achievement of a hemispheric free trade area under conditions of
certainty and transparency :
b) Ensure the integration of smaller economies into the FTAA process.
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COMPETITION POLICY
The objectives of the negotiations are :
a) General Objectives:
To guarantee that the benefits of the FTAA liberalization process not be
undermined by anti-competitive business practices.
b) Specific Objectives:
To advance towards the establishment of juridical and institutional coverage
at the national, sub-regional or regional level, that proscribes the carrying
out of anti-competitive business practices;
To develop mechanisms that facilitate and promote the development of
competition policy and guarantee the enforcement of regulations on free
competition among and within countries of the Hemisphere.
DISPUTE SETTLEMENT
a) To establish a fair, transparent and effective mechanism for dispute
settlement among FTAA countries, taking into account inter alia the WTO
Understanding on Rules and Procedures Governing the Settlement of
Disputes.
b) To design ways to facilitate and promote the use of arbitration and other
alternative dispute settlement mechanisms, to solve private trade
controversies in the framework of the FTAA.
Work in different groups may be interrelated, such as agriculture and market
access; services and investment; competition policy and subsidies, antidumping
and countervailing duties; among others. The TNC shall identify linkages and
outline appropriate procedures to ensure timely and effective coordination. We
agree to give the mandate to the relevant negotiating groups to study issues
relating to: the interaction between trade and competition policy, including
antidumping measures; market access and agriculture, in order to identify any
areas that may merit further consideration by US. The groups involved will report
their results to the TNC no later than December 2000. This is without prejudice to
decisions made by the TNC to dissolve, establish or merge groups. Likewise, the
negotiating groups may establish ad-hoc working groups.
13
RESULTS OF THE SAN JOSE TRADE MINISTERIAL
SAN JOSE, COSTA RICA -- MARCH 19, 1998
Initiation of Negotiations:
Ministers unanimously recommended that their Leaders initiate negotiation of
the FTAA during the Santiago Summit and provided recommendations on the
initial structure, objectives, principles, and venues of the negotiations.
--
San Jose Declaration initiating FTAA negotiations is comparable to the
1986 Punta del Este Declaration that initiated the Uruguay Round
negotiations.
Negotiations will begin simultaneously in all substantive areas.
Negotiations will conclude by December 31, 2004, with concrete progress by the
end of the century.
Ministers agreed that Negotiating Groups are to achieve considerable
progress by the year 2000, including agreeing on measures for adoption
before the end of the century.
Structure of the Negotiations:
Chairmanship of the FTAA Negotiations has been agreed for the entire period,
as follows:
May 1, 1998-Oct. 31, 1999: Canada
Nov. 1, 1999-April 30, 2001: Argentina
May 1, 2001-Oct. 31, 2002: Ecuador.
Nov. 1, 2002-Dec. 31, 2004: Co-chair between the United States and Brasil
--
The Chairman of the FTAA Negotiations will head both the Ministerial and
the Trade Negotiations Committee (TNC), which will provide the overall
direction and management to the negotiations. The TNC's first meeting
will be held no later than June 30, 1998. The TNC consists of the 34 Vice
Ministers for Trade.
Nine initial Negotiating Groups have been established, with the following
chairmen (and vice chairmen) for the first 18 months of negotiations:
Market Access:
Colombia
(Bolivia)
Agriculture:
Argentina
(El Salvador)
Page 1
Services:
Nicaragua
(Barbados)
Government Procurement: United States
(Honduras)
Investment:
Costa Rica
(Dominican Republic)
Intellectual Property:
Venezuela
(Ecuador)
Subsidies/AD/CVD:
Brasil
(Chile)
Competition Policy:
Peru
(Trinidad & Tobago)
Dispute Settlement:
Chile
(Uruguay/Paraguay)
--
All Negotiating Groups are to hold their initial meeting no later than
September 30, 1998.
--
The negotiating structure is flexible, and the Ministers expect to modify it
over time as required to assist the negotiations.
A Committee of all governments will be established to receive input from
business, labor, environmental, academic and other non-governmental interests,
to analyze the advice, and to provide recommendations to the Ministers of
Trade. We expect the organizational details of this committee to be established
at the first meeting of the Trade Negotiations Committee (TNC) in June.
A Committee on Electronic Commerce was established; it will be a government-
private sector committee of experts, chaired by CARICOM, to make
recommendations on how to increase and broaden the benefits to be derived
from the electronic marketplace.
A Consultative Group on Smaller Economies was established to bring to the
attention of the TNC the smaller economies' interests and concerns. The
Consultative Group initially will be chaired by Jamaica, with Guatemala as Vice
Chairman. It is not a negotiating group, and it is open to all 34 countries'
participation.
Venue:
All negotiations will be at the same site, which will rotate as follows:
Miami:
May 1, 1998-Feb. 28, 2001
Panama City:
March 1, 2001-February 28, 2003
Mexico City:
March 1, 2003-December 31, 2004
Administrative and Technical Support:
An Administrative Secretariat will be established at the site of the negotioation to
provide logistical and administrative support; to provide translation services for
Page 2
documents and to maintain the offical documents of the negotiations; to arrange
interpretation during the negotiating sessions; and to publish and distribute
documents.
The Administrative Secretariat will be funded from local (i.e., negotiating
site) resources and existing resources from the Inter-American
Development Bank, the OAS, and the UN Economic Commission for Latin
America and the Caribbean (ECLAC).
--
Negotiating Groups may continue to request technical support from the
Tripartite Committee, which is a committee composed of the three
institutions above. The Tripartite Committee provided such technical
support to the FTAA Working Groups during the past three years.
Principles and Objectives of the Negotiations:
The San Jose Declaration contains General Principles for the Negotiations, as well as
General and Specific Objectives.
Among the most important principles from the standpoint of the United States are:
The FTAA should improve upon WTO rules and disciplines wherever possible
and appropriate.
Negotiations will be conducted in a transparent manner.
The outcome of the negotiations will be a "single undertaking", in the sense that
signatories to the final FTAA agreement will have to accept all parts of it---
cannot pick and choose among the obligations.
Among the most important objectives from the standpoint of the United States are:
To progressively eliminate tariffs, non-tariff barriers, as well as other measures
with equivalent effects, which restrict trade.
To bring under greater discipline trade-distorting practices for agricultural
products; including those that have effects equivalent to agricultural
export subsidies.
To promote customs mechanisms and measures that ensure operations are
conducted with transparency, efficiency, integrity, and accountability.
To develop an efficient and transparent system of rules of origin, including
Page 3
nomenclature and certificates of origin.
To eliminate and prevent unnecessary technical barriers to trade.
To liberalize trade in services to achieve hemispheric free trade underconditions
of certainty and transparency.
To ensure adequate and effective protection of intellectual property rights, taking
into account changes in technology.
To guarantee that the benefits of FTAA liberalization process are not
undermined by anti-competitive business practices.
To establish a fair and transparent legal framework for investment and related
flows.
To make our trade liberalization and environmental policies mutually supportive.
To further secure the observance and promotion of worker rights, renewing
FTAA countries' commitments to the observance of internationally recognized
core labor standards.
Page 4*
CIVIL SOCIETY/LABOR AND ENVIRONMENT
ISSUE
Addressing environment and labor issues and assuring transparency in the FTAA
negotiations has been a USG priority during preparations leading up to this Summit. We
succeeded in having established within the FTAA process a committee of government
representatives to receive and analyze input from all sectors of civil society, including
environment and labor. The committee will present the views of civil society to the Trade
Ministers during the negotiations. It is the first time ever such a committee has been
formed during trade agreement negotiations and is a major step forward toward assuring
that all stakeholders have access to the FTAA negotiating process. Given the resistance
of Trade Ministers to addressing labor and environment, the USG should emphasize the
importance of these issues to the ultimate success of the FTAA.
TALKING POINTS
Our decision in Miami was visionary -- to create a free trade area in our
Hemisphere to move us to greater prosperity. Economic integration and free trade
are key factors in raising our standards of living, improving working conditions of
our people, and better protecting the environment in the Americas.
We in the United States are delighted that at San Jose our trade ministers
recognized that transparency is indispensable to success of the FTAA negotiations.
We cannot afford to have our efforts to negotiate a good agreement jeopardized
by a citizenry who believes that their concerns were ignored because the process
had no mechanism for considering them.
The mechanism created in San Jose, a committee of government representatives,
will ensure the consideration of the views of all members of civil society (labor,
environmental, business, academic, and others) as the negotiations proceed. We
must work together to ensure the organization and operation of this committee
provides an effective channel of communication for these groups which is so vital
to their support of the FTAA.
As we proceed with hemispheric economic integration, we must keep in mind the
pace of progress on related fronts, such as the protection of the environment and
the observance and promotion of workers rights.. Mindful that the FTAA
negotiations will conclude by 2005, we should work to make the processes for
achieving hemispheric integration consistent with and mutually supportive of our
other commitments at the Miami Summit and the Santa Cruz Summit on Sustainable
Development, as well as those made at this Summit in Santiago.
1
BACKGROUND
Recognizing the importance of environment and labor both substantively and politically,
the USG has consistently taken the position throughout the preparations leading up to this
Summit that trade liberalization and environmental policies must be mutually supportive
and that the observance and promotion of worker rights should be further secured. We
obtained strong commitments in the San Jose Declaration as well as in the Santiago
Declaration and Plan of Action to ensure transparency through a mechanism for
considering civil society's concerns in the FTAA process itself.
U.S. efforts over the last three and a half years have not been warmly received by many
of our FTAA partners. In San Jose, we were ultimately successful in having the Trade
Ministers establish a committee of government representatives to receive views from
various sectors of society, including environment and labor. Once it has reviewed and
analyzed them, this committee is to present the range of views to the Ministers. This step,
while judged modest by our environment and labor NGOs, is highly significant: for the first
time ever, a committee has been established during the course of trade negotiations to
expand the involvement of all sectors of civil society and to assure that all stakeholders
have access to the process. It will be important to ensure at the June Trade Negotiations
Committee (TNC) meeting that the organizational details of the committee of government
representatives result in an effective channel of communication for members of civil
society.
Our efforts for strong environment language in the Santiago Declaration and Plan of Action
have been partially successful. There are other sections of the Declaration and Plan of
Action that address labor concerns, including core labor standards, education and training
of worker, and combating child exploitation. The trade provisions of both the Santiago
Declaration and Plan of Action commit to a transparent FTAA negotiating process and to
taking the objectives of improving working conditions and protecting the environment into
account as we move toward Hemispheric economic integration.
Organized labor's call for recognition in the FTAA process began in Denver where the
Interamerican Regional Organization of Workers (ORIT, by its Spanish initials) and the
AFL-CIO jointly sponsored a parallel forum to the Business Forum with representatives
from labor organizations in most countries in the hemisphere attending. As the Business
Forum of the Americas gained greater access to the Trade Ministers, organizers of the
Labor Forum sought to broaden their representation to emphasize their objection to the
lack of access to the process afforded civil society in contrast to that offered to the
business community. At Belo Horizonte, the Workers of the Americas' Forum, joined with
the Our Americas' Forum, a broad group of NGOs, including the environment, women's
groups, and indigenous people, to demonstrate the solidarity of their concerns. In San
Jose, a similar group of primarily Central American NGOs, including some unions
associated with ORIT and two from the AFL-CIO, held a forum to build solidarity in the
2
region.
Several major U.S. environmental NGOs are fully invested in the FTAA process. At the
San Jose Ministerial in March, U.S. NGOs brought together about twenty environmental
NGOs from throughout Latin America for a two-day strategic planning seminar prior to the
Ministerial. They issued a Declaration, calling on the FTAA governments to "establish an
action plan and formal mechanism to integrate the principles of sustainable development,
including a formal negotiating group on trade, environment and sustainable development
with equal status to other negotiating groups established in the FTAA process." These
NGOs are anticipating with cautious optimism the TNC's articulation of the organizational
details of the Trade Ministers' committee of government representatives.
Labor, environmental, and other NGOs are prepared for this Summit also. They have
issued a Call to Action for a Summit of the Peoples of the Americas to be held April 15-18
in Santiago. Since the initial invitation, Labor NGOs decided to hold a Forum on April 16
or 17, which will be separate from the Peoples Summit. Approximately 45 people from
about 20 countries are registered for the Labor Forum, including representatives from the
AFL-CIO and other U.S. labor groups. The agenda for the Peoples Summit includes
panels on the Multilateral Agreement on Investment, energy, biodiversity, sustainable
development, and citizen participation, as well as other topics.
3
04/07/98 TUE 09:33 FAX 202 395 4579
001
April 7, 1998
TO:
STATE
FAX
VOICE
Ann Wells, OES
647-2746
647-2245
Minnie Rojo, OES
647-5947
647-9278
Ambassador Brown, ARA
736-7618
736-7533
Doug Climan, ARA
647-6408
647-1232
USAID
John McMahon
216-3262
712-0897
CEQ
David Sandalow
62710
66543
EPA
David Van Hoogstraten
260-3828
260-8882
Peter Lallas
260-3828
260-8881
COMMERCE
Skip Jones, ITA
482-5939
482-2307
Dennis Burke
482-4726
INTERIOR
Larry Finfer
208-4867
208-7786
JUSTICE
Jim Rubin
514-4231
514-9050
Ignacia Moreno
514-5243
514-0557
TREASURY
Bill Schall
622-1731
622-0208
NEC
Lael Brainard
56853
62801
CEA
Mark Hopkins
56809
53517
FROM:
JC Williams (395-9449)
USTR
SUBJECT:
Talking Points on Civil Society/Labor and Environment for the Santiago
Summit briefing book
Attached please find draft talking points on Civil Society/Labor and Environment for the briefing
book for the upcoming Santiago Summit. Please give me comments by 3:00pm today. The
document must go forward by cob today for inclusion in the briefing book. Phone (395-9449)or
fax (395-4579). Thanks. JC
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DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. talking points
Re: Civil Society/Labor and Environment (5 pages)
ca. 04/1998
P1/b(1)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act |44 U.S.C. 2204(a)]
Freedom of Information Act 15 U.S.C. 552(b)]
P1 National Security Classified Information |(a)(1) of the PRA]
b(1) National security classified information |(b)(1) of the FOIA)
P2 Relating to the appointment to Federal office [(a)(2) of the PRA|
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA|
an agency |(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA|
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA|
and his advisors, or between such advisors |a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA)
h(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
Concrete Progress
Issue
The Summit Plan of Action includes the mandate to Ministers to "achieve concrete
progress in the negotiations by the year 2000 and agree on specific business facilitation
measures to be adopted before the end of the century." At the San Jose Ministerial, we
agreed
Talking Points:
It is very important to show concrete progress by the end of the century, as
Leaders agreed at Miami.
We should not wait until 2005 to show tangible results; we need to be making it
easier now to do business across the Hemisphere.
We all should support a very ambitious approach, including the identification of
meaningful measures for adoption by the end of 1999.
Some examples of concrete progress measures include:
-- in the customs area, implementing a code of conduct for customs officials in
accordance with the Arusha Declaration (to avoid arbitrary or even corrupt
customs treatment) and developing obligations to implement the Cancun
Memorandum on customs procedures for express shipments (to speed the
processing through customs of such shipment that often are vital to businesses);
-- in the services area, implementing mutual recognition agreements (MRAs) in
the licensed professions (e.g., architecture, engineering, and accountancy) and
adhering to the WTO Professional Services Framework Agreement for mutual
recognition of licensing accreditation by professionals;
-- in the area of telecommunications, implementing MRAs for certification of
telecommunications equipment; and,
-- in the area of government procurement, implementing an agreement on
transparency and due process in government procurement procedures.
Background
In light of the agreement of the Leaders that concrete progress toward the construction
of the FTAA be attained by the end of the century, the TNC at its first meeting will
identify business facilitation measures to be implemented by the year 2000. The TNC
should take into consideration, as appropriate, the recommendations of the Americas
Business Forum on measures for concrete progress.
While to date there has been no agreement on the definition of "business facilitation
measures," the U.S.-believes that concrete progress should include the full
implementation of countries' WTO obligations and the conclusion and implementation of
agreements, as appropriate and feasible, that could be implemented on a provisional or
a definitive basis.
The U.S. floated an illustrative list of concrete progress measures with other countries
in the PrepCom process leading up to the San Jose Ministerial. Such measures could
include (beyond those noted in your talking points above), among others:
Anti-Corruption:
taking the necessary steps to adhere to the OAS Inter-American Convention
Against Corruption and depositing instruments of ratification with the OAS;
Telecommunications:
taking the necessary steps to adhere to the WTO Basic Telecommunications
Reference Paper, in order to harmonize commitments among all 34 FTAA
countries by the year 2000 and foster effective implementation of the
pro-competitive regulatory principles set forth by the WTO agreement;
Investment - Arbitration:
taking the necessary steps to accede to arbitral conventions including the New
York Convention and the 1965 Convention on the Settlement of Investment
Disputes between States and Nationals of Other States;
Intellectual Property Rights:
taking the necessary steps to adhere to and implement existing multilateral or
regional agreements, including the Brussels Convention, WIPO Copyright
Treaty, the WIPO Performances and Phonograms Treaty, Berne Conventions,
Paris Convention, Budapest Treaty, Patent Cooperation Treaty, and Trademark
Law Treaty by the end of the century.
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DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
002. talking points
Re: Global Electronic Commerce (3 pages)
04/07/1998
P1/b(1)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)|
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information |(a)(1) of the PRA|
b(1) National security classified information |(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRAJ
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information |(b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRAJ
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells |(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
5 December 1997
JOINT EU-U.S. STATEMENT ON ELECTRONIC COMMERCE
1.
Global electronic commerce, driven by the development of the Internet, will be an
important engine for growth in the world economy in the 21st century. Electronic
commerce offers considerable new opportunities for business and citizens in all
regions of the world. In particular, small companies will be able to obtain
unprecedented access to world-wide markets at low costs and consumers will be
able to choose from an even wider range of products and services. Electronic
commerce will enhance productivity across all sectors of our economies, further
encourage both trade in goods and services and investment, create new sectors of
activities, new forms of marketing and selling, new revenue streams and, most
importantly, new jobs. Services liberalization, particularly of the basic telecom
services, plays a key role in underpinning the growth of electronic commerce.
2.
We encourage an open dialogue between governments and the private sector
world-wide in order to construct a predictable legal and commercial environment for
the conduct of business on the Internet. We recognize that electronic commerce
requires a coherent, coordinated approach internationally. Where government
agreements are appropriate, we also commit ourselves, to work together
constructively along with our trade partners within the appropriate multilateral
institutions and other fora to reach coherent and effective solutions preferably at
a global level. In this regard, we agree on the importance of fully involving all
(
countries, including developing countries.
3.
We agree to work towards the development of a global marketplace where
competition and consumer choice drive economic activity, on the basis of the
following guidelines:
(i)
That the expansion of global electronic commerce will be essentially market-led
and driven by private initiative. It should take into account the interests of all
stakeholders, in particular of consumers, libraries, schools and other public
institutions, as well as the need to ensure the widest use possible of new
technologies.
(ii)
That the role of government is to provide a clear, consistent and predictable legal
framework, to promote a pro-competitive environment in which electronic
commerce can flourish and to ensure adequate protection of public interest
objectives such as privacy, intellectual property rights, prevention of fraud,
consumer protection, and public safety.
CLINTON LIBRARY PHOTOCOPY
(iii)
That industry self-regulation is important. Within the legal framework set by
government, public interest objectives can, as appropriate, be served by
international or mutually compatible codes of conduct, model contracts, guidelines,
etc. agreed upon between industry and other private sector bodies.
(iv)
That unnecessary existing legal and regulatory barriers should be eliminated and
the emergence of new ones should be prevented. Where legislative action is
deemed necessary, it should not be to the advantage or disadvantage of electronic
commerce compared with other forms of commerce.
(v)
That taxes on electronic commerce should be clear, consistent, neutral and non
discriminatory.
(vi)
That it is important to enhance the awareness and confidence of citizens and
SMEs in electronic commerce and to support the development of relevant skills
and network literacy.
(vii)
That interoperability, innovation and competition are important for the development
of a global marketplace, and that, in this context, voluntary, consensus-based
standards, preferably at an international level, can play an important role.
4.
Specifically, we agree to work towards:
(i)
A global understanding, as soon as possible, that:
when goods are ordered electronically and delivered physically, there will be no
additional import duties applied in relation to the use of electronic means.
in all other cases relating to electronic commerce, the absence of duties on imports
should remain.
(ii)
The effective implementation by 1 January 1998 of the commitments on basic
telecommunication services included in the schedules of commitments attached
to the WTO General Agreement on Trade and Services (GATS) and the
completion of the second phase of the Agreement on Information Technology
Products by summer 1998.
(iii)
The ratification and implementation, as soon as possible, of the WIPO Copyright
Treaty and the WIPO Performances and Phonograms Treaty.
(iv)
Ensuring the effective protection of privacy with regard to the processing of
personal data on global information networks.
2
(v)
The creation of a global market based system of registration, allocation and
governance of Internet domain names which fully reflects the geographically and
functionally diverse nature of the Internet.
5.
Furthermore, we agree on:
(i)
Active support for the development, preferably on a global basis, of self-regulatory
codes of conduct and technologies to gain consumer confidence in electronic
commerce, and in doing so, to involve all market players, including those
representing consumer interests.
(ii)
Close co-operation and mutual assistance to ensure effective tax administration
and to combat and prevent illegal activities on the Internet..
(iii)
The important positive role that electronic commerce can play in developing a
coherent approach to international work on trade facilitation.
(iv)
Close co-operation in jointly defined areas of R&D and electronic commerce
technologies, in the framework of the EU-US Science and Technology Agreement,
as well as in appropriate business pilot projects.
(v)
Continuing substantive bilateral discussions at experts level, including, as
appropriate, both government and private sector participants, on the issues
mentioned above as well as other issues, such as government procurement;
contract law and regulated professions; liability; commercial communication;
electronic payments; encryption; electronic authentication/digital signatures; and
filtering and rating technologies.
(vi)
Close co-operation with a view to encouraging the exchange of statistical data on
electronic commerce.
6.
Where necessary to achieve these goals, we will continue our discussions with a
view to reaching consensus in the appropriate multilateral fora, which may include,
for example, the WTO, the OECD, WIPO, and UNCITRAL. We strongly
encourage continued work within the EU-U.S. Information Society Dialogue, the
Trans-Atlantic Business Dialogue and the EU-U.S. Joint Study.
7.
We will examine progress towards achieving these goals at our forthcoming
Summits.
3
FTAA AND SMALL ECONOMIES
The smaller and poorer economies in Latin America and the Caribbean are deeply concerned that
implementation of the FTAA could cause them serious adjustment costs and damage their
economic and political stability. The countries of the English-speaking Caribbean are particularly
vocal about this issue. They want preferential treatment granted to all "smaller" countries in the
negotiations and financial assistance to help them in the adjustment process.
The U.S. position is to recognize that countries differ widely in their levels of development and
size. We agree with the principle that "special attention should be given to the needs, economic
conditions (including transition costs and possible internal dislocations) and opportunities of
smaller economies to ensure their full participation in the FTAA process" (from the General
Principles of the Ministerial Declaration of San Jose).
The United States, along with most FTAA countries, cannot agree that smaller economies should
be guaranteed preferential treatment a priori, across the board. We believe any form of special
treatment should be negotiated on a case-by case basis reflecting the specific needs of individual
countries. We participated actively in the FTAA Working Group on Smaller Economies and
intend to continue to do so in its successor - the Consultative Group on Smaller Economies,
established by the San Jose Ministerial.
There is consensus among FTAA participants that all countries in a position to do so (including
the larger and relatively-more-advanced developing countries) should provide technical assistance
to help smaller economies to participate in the FTAA negotiations and to implement the
obligations of the FTAA. We have asked the smaller developing countries to identify their
specific technical assistance needs. Many have already done so by responding to questionnaires
designed for this purpose, and the OAS trade unit is currently processing this data -- to be
presented at the first meeting of the Consultative Group. Meanwhile, some technical assistance
programs are already underway.
Concerning financial assistance for structural adjustment, we believe this is an issue which should
not be handled within the FTAA, but within the specialized organizations for such assistance, such
as the IDB or IBRD. We note that many lending programs for structural adjustment are currently
underway or being planned.
Talking Points
The United States encourages the smaller economies of the hemisphere to realistically
identify the specific technical needs that will help them to implement the obligations of the
FTAA, once established. We understand that this process is well-underway in many
countries.
As regards financial assistance for structural adjustment, these projects can best be
pursued within-the specialized organizations which already exist to provide such
assistance, such as the IDB or IBRD. We note that many lending programs for structural
adjustment are currently underway or being planned.
While we recognize the special needs of smaller economies, we believe that these needs
can be effectively addressed through Consultative Group on Smaller Economies
established by the San Jose Ministerial, not by granting preferential treatment.
That said, we were pleased that the Ministers decided to establish the Consultative Group
and intend to participate actively in the group.
An
Inside U.S. Trade
Inside
JAF
Washington
Publication
Dr
LB
Anexclusive weekly report on major government and industry trade action
me
March 23, 1998
Special Report
FINAL FTAA DECLARATION FALLS SHORT OF AT LEAST TWO KEY U.S. DEMANDS
SAN JOSE, COSTA RICA - Hemispheric trade ministers late last week agreed on a comprehensive blueprint for
the Free Trade Area of the Americas, for which negotiations will begin on Sept. 30, 1998. The final agreement on the
structure and substance of the FTAA falls short of at least two key U.S. demands regarding labor and environment and
quick negotiating results by 2000, according to the March 19 FTAA ministerial declaration.
Instead of agreeing to a U.S. proposal for study groups that would have made recommendations on promoting
worker's rights and environmental protection in the hemisphere, the ministers established a committee to hear the views
of non-governmental groups representing academics, labor activists or environmentalists along with business representa-
tives. But the committee is not obligated to actually consider the views expressed, according to senior trade officials.
The final declaration also does not heed a U.S. call for early results in the negotiations. Instead, it calls on negotiating
groups to make "considerable progress" by the year 2000, and instructs vice ministers to agree on business facilitation
measures to be implemented by that time.
The final negotiating principles and objectives do not contain language that agreements reached at an early stage of
the negotiations may be implemented prior to the formal negotiations. That demand was included in the March 18 draft
FTAA declaration that emerged from this week's vice ministers meeting.
U.S. Trade Representative Charlene Barshefsky praised the final agreement as reflecting what the U.S. wanted
to accomplish. "The United States achieved all of its key objectives here, setting the stage for a comprehensive and
successful launch of substantive negotiations at the Santiago Summit," she said in a March 20 statement. "We have set a
strong foundation for negotiations and we have made important progress on labor and environmental issues with the
FTAA."
In a March 19 press conference, Barshefsky downplayed the differences between the new committee and the study
groups on labor and environment the U.S. had sought. "We were successful for the first time in 40 years of pushing for
the creation of an environment and labor committee," she said. But she conceded that the new committee is not limited to
hearing from labor and environment representatives, but will also hear from academics and business groups.
"This was an extremely hard and extremely difficult negotiation," she said.
She emphasized that the committee was part of the FTAA process and has a structure exactly like the other groups.
The language ministers agreed to shows "that elements of civil society have got to be brought in or the FTAA process
itself will be threatened," according to Barshefsky.
She also downplayed the fact that FTAA ministers have made no commitments to act on the views they hear through
this committee. She highlighted the fact that negotiators do not necessarily have to adhere to any business recommenda-
tions either, and that no country has assurances that its position will prevail in a given negotiation.
"This is the nature of negotiations and the formulation of agreements," she said. "You set priorities, you make
choices, you take good ideas, you reject bad ideas."
Barshefsky only briefly addressed the declaration's language on concrete progress in the negotiations. In her
March 19 press conference, she emphasized the agreement to implement business facilitation measures by that year,
which she said would be defined at the first meeting of the Trade Negotiation Committee in June. In her March 20
statement, Barshefsky said these measures would cover areas of customs procedures, professional services, and intellec-
tual property.
The U.S. proposal to have FTAA nations endorse tariff-free electronic commerce received little support from
countries such as Canada. According to a March 18 draft, the U.S. had sought declaration language that would have
committed countries to continue the current practice of not imposing customs duties on electronic submissions.
Instead, the final declaration sets up an expert committee of government and private specialists that will make
recommendations on how to increase and broaden the benefits to be derived from electronic commerce. Barshefsky said it
was "very important" for the U.S. to establish a business-government group. "This comports with one of the President's
key electronic commerce objectives, which is the need for the private sector to lead in electronic commerce."
She said that setting up this committee builds an awareness of the importance of duty-free cyberspace, and pointed
out that the U.S. is pressing its initiative multilaterally. "We continue to pursue this agenda simultaneously in the WTO [World
Trade Organization], where the largest players have signed off on our approach," she said in a March 20 statement.
The final FTAA declaration contains does not contain an outright commitment not to impose new trade barriers, but
continued on next page
Business Groups Split on Key FTAA Issues
p.8
only pledges such a standstill "to the greatest extent possible." The document also sets up the structure of the FTAA with rotating
chairmanships, secretariats and nine negotiating groups for the first eighteen months of the negotiations.
The declaration also lays out general objectives and principles for the negotiations, as well as objectives for the
various issue areas.
The final declaration leaves open when the results of the FTAA will be implemented if they are negotiated by
the year 2005. The objectives for the market access issue area states only that the FTAA will "progressively eliminate
tariffs, non-tariff barriers a well as other measures with equivalent effects, which restrict trade between participating
countries," according to the final declaration.
The text does not make any reference to a date, and does not stipulate whether the trade liberalization would cover
all or substantially all trade. In contrast, the March 18 draft presented to the trade ministers by the vice ministers shows
that some countries pushed language stating trade barriers should be removed progressively starting in the year 2005.
That draft language also showed that countries disagreed whether barriers should be removed for "all trade" or "for the
substantial trade."
Regarding trade remedy law, the final declaration no longer contains language supported by Mexico, Chile and
others that could have challenged the use of antidumping law in the FTAA. The March 18 vice ministerial draft section on
the objectives for the subsidies, antidumping and countervailing duty group asked for an examination of "the possibility
of eliminating antidumping measures in the future framework of a Free Trade Area of the Americas."
San José Ministerial Declaration
Ministerial Declaration of San José
4. Furthermore, we reiterate that the negotiation of the
SUMMIT OF THE AMERICAS FOURTH TRADE MINIS-
FTAA shall take into account the broad social and economic
TERIAL MEETING
agenda contained in the Miami Declaration of Principles and
SAN JOSE, COSTA RICA
Plan of Action with a view to contributing to raising living
MARCH 19th, 1998
standards, to improving the working conditions of all people
in the Americas and to better protecting the environment.
5. In designing the FTAA we shall take into account
I. INTRODUCTION
differences in the levels of development and size of the
1. We, the Ministers Responsible for Trade, represent-
economies in our Hemisphere, to create opportunities for the
ing the 34 countries which participated in the Summit of the
full participation of the smaller economies and to increase
Americas, in Miami, in December 1994, met at the IV Minis-
their level of development.
terial Meeting on Trade in San José, Costa Rica to review the
6. We recognize the wide differences in the level of devel-
results of the preparatory work for the negotiations of the Free
opment and size of economies existing in our Hemisphere and we
Trade Area of the Americas (FTAA) with the intent to recom-
will remain cognizant of these differences as we work to ensure
mend to our Heads of State and Government the initiation of
their full participation in the construction of the FTAA.
the negotiations.
7. We reviewed and approved the work submitted to us
2. We note the progress achieved in trade liberalization
by the Preparatory Committee of Vice-Ministers on how to
in this Hemisphere since the Miami Summit of the Americas
proceed with the negotiations of the FTAA.
as a result of the implementation of the obligations assumed
by our Governments in the context of the Uruguay Round of
II. INITIATION OF THE NEGOTIATIONS
Multilateral Trade Negotiations and of the World Trade Or-
8. We recommend to our Heads of State and Government
ganization (WTO); the widening and deepening of existing
that they initiate negotiation of the FTAA during the II Summit of
sub-regional and bilateral integration and free trade agree-
the Americas, which will be held in Santiago, Chile, on April 18
ments; the signing of new agreements; and the unilateral trade
and 19, 1998, in accordance with the objectives, principles, struc-
liberalization measures adopted by some countries. Even as
ture, venue and other decisions set forth in this Declaration.
countries in our region have been tested by financial and other
9. We reaffirm the principles and objectives that have
economic pressures, the overall course in the Americas has
guided our work since Miami, as set out in Annex I, including
been one of faster economic growth, lower inflation, ex-
inter alia that the agreement will be balanced, comprehensive,
panded opportunities, and confidence in participating in the
WTO-consistent, and will constitute a single undertaking. It
global marketplace. A major reason for this positive record
will take into account the needs, economic conditions and
has been our countries' steadfast and cooperative efforts to
opportunities of the smaller economies. The negotiations will
promote prosperity through increased economic integration
be transparent and built on consensus decision making. The
and more open economies. We are confident, therefore, that
FTAA can co-exist with bilateral and sub-regional agree-
the FTAA will improve the well being of all our people.
ments, to the extent that the rights and obligations under these
3. With the intent of contributing to the expansion of
agreements are not covered or go beyond the rights and
world trade, we reaffirm our commitment that the FTAA shall
obligations of the FTAA. We remain committed to conclud-
not raise additional barriers to other countries, and we will
ing the negotiations no later than 2005 and to achieving
continue to avoid to the greatest extent possible the adoption
concrete progress toward the attainment of this objective by
of policies that adversely affect trade in the hemisphere.
the end of the century.
2
INSIDE U.S.TRADE - Special Report - March 23, 1998
III. STRUCTURE AND ORGANIZATION OF THE NE-
Investment
Costa Rica
Dominican Rep.
GOTIATIONS
10. We have agreed to an initial structure for the
Services
Nicaragua
Barbados
negotiations. This structure is flexible and we expect to
modify it over time as required to assist the negotiations.
Government Procurement
United
States
Honduras
We will exercise the ultimate oversight and management
of the negotiations and therefore we will meet as required
Dispute Settlement
Chile
Uruguay-Paraguay
and no less than every 18 months. We establish the Trade
Negotiations Committee (TNC) at the Vice-ministerial
Agriculture
Argentina
El Salvador
level. The TNC will have a Chairman and a Vice-Chair-
man. The TNC will select the Chairman and Vice Chair-
Intellectual Property Rights
Venezuela
Ecuador
man of each negotiating group. The TNC will have the
responsibility of guiding the work of the negotiating groups
Subsidies, Antidumping
Brazil
Chile
and of deciding on the overall architecture of the agree-
and Countervailing Duties
ment and institutional issues. The TNC is to take the
overall responsibility of ensuring the full participation of
Competition Policy
Peru
Trinidad/Tobago
all the countries in the FTAA process. It will also ensure
that this issue, in particular the concerns of the smaller
Work in different groups may be interrelated, such
economies and concerns related to countries with different
as agriculture and market access; services and investment;
levels of development will be dealt with within each nego-
competition policy and subsidies, antidumping and
tiating group. The TNC should meet as required and no
countervailing duties; among others. The TNC shall iden-
less than twice a year. It should hold its first meeting no
tify linkages and outline appropriate procedures to ensure
later than the 30th of June, 1998.
timely and effective coordination. We agree to give the
11. We establish 9 negotiating groups on : market
mandate to the relevant negotiating groups to study issues
access; investment; services; government procurement; dis-
relating to: the interaction between trade and competition
pute settlement; agriculture; intellectual property rights; sub-
policy, including antidumping measures; market access
sidies, antidumping and countervailing duties; and competition
and agriculture, in order to identify any areas that may
policy. The Chairman and Vice-Chairman of each group will
merit further consideration by us. The groups involved
be selected taking into account the need to maintain geo-
will report their results to the TNC no later than December
graphic balance among countries. They will serve for a period
2000. This is without prejudice to decisions made by the
of 18 months or until the subsequent ministerial meeting. As
TNC to dissolve, establisht or merge groups. Likewise, the
a general principle, there should not be immediate reelection
negotiating groups may establish ad-hoc working groups.
of the Chair and Vice-chair. This principle establishes a
presumption against immediate reelection, but should not be
Chairmanship of the FTAA
inflexibly applied. The negotiating groups will be guided in
12. The Chairmanship of the FTAA process will Γo-
their work by the general principles and objectives in Annex
tate among different countries at the end of each Ministe-
I as well as specific objectives in Annex II. We mandate the
rial Meeting. The country that will chair the FTAA process
TNC in its first meeting to develop a work program for the
will host the Ministerial Meetings and will also chair the
negotiating groups in order to ensure that they begin their
TNC.
work no later than the 30th of September, 1998. We have
The countries that will hold the Chair and Vice-chair of
agreed that the meetings of the negotiating groups will be held
the FTAA process will be:
in a single venue which will rotate among the following three
countries:
May 1, 1998- Oct. 31, 1999
Chair Canada Vice-chair Argentina
Miami, United States: From May 1, 1998 to February 28, 2001
Nov. 1, 1999- April 30, 2001
Panama City, Panama: From March 1, 2001 to February 28, 2003
Chair Argentina Vice-Chair Ecuador
Mexico D.F., México: From March 1, 2003 to December 31, 2004
May 1, 2001- Oct. 31, 2002
Chair Ecuador Vice-Chair Chile
The period for which Mexico hosts the venue of the
negotiations will be up to the conclusion of the negotiations.
Nov. 1, 2002- Dec. 31, 2004
The countries that will have the Chair and Vice-Chair
Co-chair between Brazil and the United States of America
of the negotiating groups for the first 18 month period will be
the following:
The period in which the United States of America and
Brazil exercise the Co-chairmanship will be until the conclu-
Negotiating Group
Chair
Vice-Chair
sion of the negotiations.
In the last period, from November 1st, 2002 to De-
Market Access
Colombia
Bolivia
cember 31st, 2004, there will be at least two Meetings of
INSIDE U.S.TRADE - Special Report - March 23, 1998
3
Ministers Responsible for Trade, one in each Co-chair
economies, at their request, according to the procedures of
country.
the respective institutions.
In the first 18 month period, three meetings of the
16. We also express our appreciation and reiterate
TNC will be held, one in each of the following countries:
our interest, that the pertinent multilateral, regional and
Argentina, Suriname and Bolivia. In the second 18 month
sub-regional institutions continue to offer, in their areas of
period, from November 1, 1999 to April 30, 2001, the first
recognized specialization, additional contributions in re-
meeting will be held in Guatemala will hold the first
sponse to specific requests from the TNC and the negotia-
meeting of the TNC.
tion groups.
Consultative Group on Smaller Economies
IV. OTHER ISSUES
13. We have agreed to establish a Consultative Group
on Smaller Economies, open to the participation of all the
Participation of Civil Society
FTAA countries, and reporting to the TNC. For the first
17.We reaffirm our commitment to the principle of
period, the Chair will be Jamaica with Guatemala serving as
transparency of the negotiation process, to facilitate the con-
Vice-chair. Succession criteria will be the same as those
structive participation of the different sectors of society. We
applying to the negotiating groups. The Consultative Group
also reaffirm our commitment to the Belo Horizonte Ministe-
will have the following functions:
rial Declaration and to paragraph 4 of the Singapore Ministe-
a) follow the FTAA process, keeping under
rial Declaration of the WTO.
review the concerns and interests of the smaller economies;
We recognize and welcome the interests and concerns
and will
that different sectors of society have expressed in relation to
b) bring to the attention of the TNC the issues of
the FTAA. Business and other sectors of production, labor,
concern to the smaller economies and make recommenda-
environmental and academic groups have been particularly
tions to address these issues.
active in this matter. We encourage these and other sectors of
civil societies to present their views on trade matters in a
Administrative Secretariat for the Negotiations
constructive manner. We have, therefore, established a com-
14. We have agreed to create an Administrative Secre-
mittee of government representatives, open to all member
tariat for the negotiations, which will conclude no later than
countries, who shall select a chair. The committee shall re-
the year 2005. It will report to the TNC and will:
ceive these inputs, analyze them and present the range of
a) provide logistical and administrative support to
views for our consideration.
the negotiations;
In this regard, we value the contributions made by the
b) provide translation services for documents and
business sector through the Business Fora of the Americas of
interpretation during the deliberations;
Denver, Cartagena, Belo Horizonte and San José.
c) keep the official documents of the negotiation;
and
Concrete progress by the year 2000
d) publish and distribute documents.
18. We reaffirm our commitment to make concrete
This Administrative Secretariat will be located at the
progress by the year 2000. We direct the negotiating groups to
same venue as the meetings of the negotiating groups. It
achieve considerable progress by that year. We instruct the
should be funded from local resources and existing resources
TNC to agree on specific business facilitation measures to be
of the Tripartite Committee Institutions. We recommend our
adopted before the end of the century, taking into account the
Governments to instruct their representatives in the institu-
substantive work that has already emanated from the FTAA
tions of the Tripartite Committee - in particular the Inter
process.
American Development Bank - to allocate appropriate ex-
isting resources within their institutions to support the Ad-
Electronic Commerce
ministrative Secretariat. The TNC will determine the size and
19. We noted the rapid expansion of Internet usage and
composition of the staff and will appoint the Head of the
electronic commerce in our Hemisphere. In order to increase
Secretariat.
and broaden the benefits to be derived from the electronic
marketplace, we welcome the offer of Caricom to lead a joint
Tripartite Committee
government-private sector committee of experts that will
15. We express our appreciation to the Tripartite
make recommendations to us at our next meeting.
Committee for the technical and logistical support given
during the preparatory phase of the FTAA negotiation. We
Acknowledgement
request that the respective institutions of the Tripartite
20. We wish to express our gratitude to the Government
Committee continue to provide the appropriate existing
of Costa Rica for its notable contribution to the advance of the
resources necessary to respond positively to requests for
FTAA process during the last year, by presiding over the
technical support from FTAA entities, including realloca-
deliberations of the Preparatory Committee of the Negotia-
tion for this purpose if necessary. Furthermore, we ask the
tions, as well as the IV Meeting of the Ministers Responsible
three institutions to provide technical assistance related to
for Trade in the Hemisphere, which concluded the prepara-
FTAA issues to member countries, particularly smaller
tions to initiate the FTAA negotiations.
4
INSIDE U.S.TRADE - Special Report March 23, 1998
Annex I
integration and free trade among the countries of our Hemi-
sphere, which are key factors for raising standards of living,
GENERAL PRINCIPLES AND OBJECTIVES
improving the working conditions of people in the Americas
The negotiations for the construction of the FTAA will
and better protecting the environment.
be guided by the following General Principles and Objectives
b) To establish a Free Trade Area, in which barriers to
trade in goods and services and investment will be progres-
GENERAL PRINCIPLES
sively eliminated, concluding negotiations no later than 2005
a) Decisions in the FTAA negotiating process will be
and achieving concrete progress toward the attainment of this
made by consensus.
objective by the end of this century.
b) Negotiations will be conducted in a transparent man-
c) To maximize market openness through high lev-
ner to ensure mutual advantage and increased benefits to all
els of disciplines through a balanced and comprehensive
participants of the FTAA.
agreement.
c) The FTAA Agreement will be consistent with the
d) To provide opportunities to facilitate the integration
rules and disciplines of the WTO. With this purpose, the
of the smaller economies in the FTAA process in order to
participating countries reiterate their commitment to multilat-
realize their opportunities and increase their level of develop-
eral rules and disciplines, in particular Article XXIV of the
ment.
General Agreement on Tariffs and Trade (GATT) 1994 and
e) To strive to make our trade liberalization and
its Uruguay Round Understanding, and Article V of the
environmental policies mutually supportive, taking into
General Agreement on Trade in Services (GATS).
account work undertaken by the WTO and other interna-
d) The FTAA should improve upon WTO rules and
tional organizations.
disciplines wherever possible and appropriate, taking into
f) To further secure, in accordance with our respective
account the full implications of the rights and obligations of
laws and regulations, the observance and promotion of worker
countries as members of the WTO.
rights, renewing our commitment to the observance of inter-
e) The negotiations will begin simultaneously in all
nationally recognized core labor standards and acknowledg-
issue areas. The initiation, conduct and outcome of the ne-
ing that the International Labor Organization is the competent
gotiations of the FTAA shall be treated as parts of a single
body to set and deal with those core labor standards.
undertaking which will embody the rights and obligations as
mutually agreed upon.
Annex II
f) The FTAA can co-exist with bilateral and sub-re-
gional agreements, to the extent that the rights and obligations
OBJECTIVES BY ISSUE AREA
under these agreements are not covered by or go beyond the
We have agreed that the negotiations for the construc-
rights and obligations of the FTAA.
tion of the FTAA, in the different issue area, will be guided by
g) Countries may negotiate and accept the obligations
the following objectives:
of the FTAA individually or as members of a sub-regional
integration group negotiating as a unit.
MARKET ACCESS
h) Special attention should be given to the needs, eco-
a) Consistent with the provisions of the WTO, includ-
nomic conditions (including transition costs and possible
ing Article XXIV of the General Agreement on Tariffs and
internal dislocations) and opportunities of smaller economies,
Trade (GATT 1994) and its Understanding on the Interpreta-
to ensure their full participation in the FTAA process.
tion of Article XXIV of the General Agreement on Tariffs and
i) The rights and obligations of the FTAA will be shared
Trade 1994, to progressively eliminate, tariffs, and non tariff
by all countries. In the negotiation of the various thematic
barriers, as well as other measures with equivalent effects,
areas, measures such as technical assistance in specific areas
which restrict trade between participating countries.
and longer periods for implementing the obligations could be
b) All tariffs will be subject to negotiation.
included on a case by case basis, in order to facilitate the
c) Different trade liberalization timetables may be
adjustment of smaller economies and the full participation of
negotiated.
all countries in the FTAA.
d) To facilitate the integration of smaller economies
j) The measures agreed upon to facilitate the integration
and their full participation in the FTAA negotiations.
of smaller economies in the FTAA process shall be transpar-
ent, simple and easily applicable, recognizing the degree of
AGRICULTURE
heterogeneity among them.
a) The objectives of the negotiating group on Market
k) All countries shall ensure that their laws, regulations
Access shall apply to trade in agricultural products. Rules of
and administrative procedures conform to their obligations
origin, customs procedures and Technical Barriers to Trade
under the FTAA agreement.
issues will be addressed in the Market Access negotiating
1) In order to ensure the full participation of all countries
group.
in the FTAA, the differences in their level of development
b) To ensure that sanitary and phytosanitary measures
should be taken into account.
are not applied in a manner which would constitute a means of
arbitrary or unjustifiable discrimination between countries or
General Objectives
a disguised restriction to international trade, in order to pre-
a) To promote prosperity through increased economic
vent protectionist trade practices and facilitate trade in the
INSIDE U.S.TRADE - Special Report - March 23, 1998
5
hemisphere. Consistent with the WTO Agreement on the
terms of the WTO Agreement on Subsidies and Countervailing
Application of Sanitary and Phytosanitary Measures (SPS
Measures.
Agreement), said measures will only be applied to achieve the
b) To achieve a common understanding with a view to
appropriate level of protection for human, animal or plant life
improving, where possible, the rules and procedures regard-
or health, will be based on scientific principles, and will not be
ing the operation and application of trade remedy laws in
maintained without sufficient scientific evidence.
order to not create unjustified barriers to trade in the Hemisphere.
Negotiations in this area involve identifying and devel-
oping measures needed to facilitate trade, following and
GOVERNMENT PROCUREMENT
examining in depth the provisions set down in the WTO/SPS
a) The broad objective of negotiations in government
Agreement.
procurement is to expand access to the government procure-
c) To eliminate agricultural export subsidies affecting
ment markets of the FTAA countries.
trade in the Hemisphere.
More specifically, the objectives are :
d) To identify other trade-distorting practices for agri-
a) To achieve a normative framework that ensures
cultural products, including those that have an effect equiva-
openness and transparency of government procurement pro-
lent to agriculture export subsidies, and bring them under
cesses, without necessarily implying the establishment of
greater discipline.
identical government procurement systems in all countries;
e) Agricultural products covered are the goods referred
b) To ensure non-discrimination in government pro-
to in Annex I of the WTO Agriculture Agreement.
curement within a scope to be negotiated ;
f) Incorporate progress made in the multilateral nego-
c) To ensure impartial and fair review for the resolution
tiations on agriculture to be held according to Article 20 of the
of procurement complaints and appeals by suppliers and the
Agreement on Agriculture, as well as the results of the review
effective implementation of such resolutions.
of the SPS Agreement.
INTELLECTUAL PROPERTY RIGHTS
RULES OF ORIGIN
a) To reduce distortions in trade in the Hemisphere and
a) To develop an efficient and transparent system of
promote and ensure adequate and effective protection to
rules of origin, including nomenclature and certificates of
intellectual property rights. Changes in technology must be
origin, in order to facilitate the exchange of goods, without
considered.
creating unnecessary obstacles to trade.
SERVICES
CUSTOMS PROCEDURES
a) Establish disciplines to progressively liberalize trade
a) To simplify customs procedures, in order to facilitate
in services, so as to permit the achievement of a hemispheric
trade and reduce administrative costs.
free trade area under conditions of certainty and transparency ;
b) To create and implement mechanisms to exchange
b) Ensure the integration of smaller economies into the
information in customs issues among FTAA countries.
FTAA process.
c) To design effective systems to detect and combat
fraud and other illicit customs activities, without creating
COMPETITION POLICY
unnecessary obstacles to foreign trade.
The objectives of the negotiations are :
d) To promote customs mechanisms and measures that
a) General Objectives:
ensure operations be conducted with transparency, efficiency,
To guarantee that the benefits of the FTAA
integrity and responsibility.
liberalization process not be undermined by anti-competitive
business practices.
INVESTMENT
b) Specific Objectives:
a) To establish a fair and transparent legal framework to
To advance towards the establishment of juridi-
promote investment through the creation of a stable and
cal and institutional coverage at the national, sub-regional or
predictable environment that protects the investor, his invest-
regional level, that proscribes the carrying out of anti-com-
ment and related flows, without creating obstacles to invest-
petitive business practices;
ments from outside the hemisphere.
To develop mechanisms that facilitate and pro-
mote the development of competition policy and guarantee
STANDARDS AND TECHNICAL BARRIERS TO TRADE
the enforcement of regulations on free competition among
a) To eliminate and prevent unnecessary technical
and within countries of the Hemisphere.
barriers to trade in the FTAA, based on the proposals
contained in the Common Objectives Paper approved by the
DISPUTE SETTLEMENT
Working Group.
a) To establish a fair, transparent and effective mecha-
nism for dispute settlement among FTAA countries, taking
SUBSIDIES ANTIDUMPING AND COUNTERVAILING
into account inter alia the WTO Understanding on Rules and
DUTIES
Procedures Governing the Settlement of Disputes.
a) To examine ways to deepen, if appropriate, existing
b) To design ways to facilitate and promote the use
disciplines provided in the WTO Agreement on Subsidies and
of arbitration and other alternative dispute settlement
Countervailing Measures and enhance compliance with the
mechanisms, to solve private trade controversies in the
6
INSIDE U.S.TRADE - Special Report - March 23, 1998
framework of the FTAA.
between trade and competition policy, including antidumping
Work in different groups may be interrelated, such as
measures; market access and agriculture, in order to identify
agriculture and market access; services and investment; com-
any areas that may merit further consideration by us. The
petition policy and subsidies, antidumping and countervailing
groups involved will report their results to the TNC no later
duties; among others. The TNC shall identify linkages and
than December 2000. This is without prejudice to decisions
outline appropriate procedures to ensure timely and effective
made by the TNC to dissolve, establish or merge groups.
coordination. We agree to give the mandate to the relevant
Likewise, the negotiating groups may establish ad-hoc work-
negotiating groups to study issues relating to: the interaction
ing groups.
FTAA Negotiation Framework
Negotiating Groups for the first 18 months
(May 1998 - October 1999)
Negotiating Group
Presidency
Vice-presidency
Market Access
Colombia
Bolivia
Investment
Costa Rica
Dominican Republic
Services
Nicaragua
Barbados
Government Procurement
United States
Honduras
Dispute Settlement
Chile
Uruguay-Paraguay
Agriculture
Argentina
El Salvador
Intellectual Property Rights
Venezuela
Ecuador
Subsidies, Antidumping and
Brazil
Chile
Countervailing Duties
Competition Policy
Peru
Trinidad and Tobago
Participation of Civil Society in FTAA
Environment, Labor, and
Chair TBD
Academic Issues Committee
Electronic Commerce
Expert Committee on
CARICOM
Electronic Commerce
Presidency and Vice-presidency of the Consultative Group on
Smaller Economies for the first period of 18 months
(May 1998 - October 1999)
Smaller Economies
Jamaica
Guatemala
Publisher: Joe Burey
Chief Editor: Jutta Hennig
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INSIDE U.S.TRADE - Special Report - March 23, 1998
7
FTAA BUSINESS GROUPS SPLIT ON INTERIM DEALS, STANDSTILL COMMITMENT
Hemispheric business groups last week failed to reach agreement on the crucial issue of whether final agreement on a
Free Trade Area of the Americas (FTAA) should be preceded by interim steps to reduce barriers to trade in the region. In
addition, the groups were unable to find any common ground on the issue of whether countries should make a commit-
ment not to impose new trade restrictions during the course of the negotiations, according to the report of business
representatives to FTAA trade ministers.
"No consensus was reached regarding as to when the standstill clause must be applied," the Business Forum of the
Americas wrote in a March 18 report to FTAA ministers. "Some participants believe that it should be applied at the
beginning of negotiations while others believe it should be done at the end of the process."
The same division evident among the business groups on standstill was reflected in the final ministerial FTAA
declaration issued on March 19. "With the intent of contributing to the expansion of world trade, we reaffirm our
commitment that the FTAA shall not raise additional barriers to other countries, and we will continue to avoid to the
greatest extent possible the adoption of policies that adversely affect trade in the hemisphere," the declaration said.
The final report of the Business Forum fell short of the vision outlined by U.S. Chamber of Commerce President and
Chief Executive Officer Thomas Donohue, who on March 17 issued a strong plea to the group for a standstill commit-
ment at the launch of the FTAA. He argued that such a pledge would be an illustration that business will not use pending
negotiations as an excuse for not opening markets.
"Our countries should agree at the outset not to raise or impose new tariffs, or to impose new non-tariff barriers to
trade in goods and services during the talks," he said in a speech to the Fourth American Business Forum in San Jose.
"This is absolutely crucial otherwise, many will have difficulty viewing the Free Trade Area talks as serious
negotiations," Donohue emphasized.
A U.S. trade official said last week that one way to keep interest alive in the FTAA is to convince business that
the negotiations are actually moving. "Especially in the private sector, they have to believe that this is the real
negotiation," the official said in a March 17 interview. But he insisted that this will be "obvious" once the negotiat-
ing groups are set up.
The split regarding the interim agreements that may be reached before 2005 was couched in terms of a
difference in the "interpretation of the single undertaking principle and its relation with interim agreements" in the
business recommendations.
Some groups argued that interim pacts are "incompatible" with a single undertaking, a position taken by Brazil and
other members of the Southern Cone Common Market (Mercosur). Others "believe that the FTAA should not limit the
possibility of putting into effect or implementing given partial or sectoral agreements before overall negotiations are
completed," the report states.
Brazilian business groups have argued strongly against efforts by U.S. organizations to win agreement for having
interim agreements by the year 2000.
The business division regarding the interim agreements is also reflected in the final FTAA declaration issued by
ministers on March 19. In their March 19 declaration, the ministers called on negotiating groups to "achieve considerable
progress" by 2000, and instructed the Trade Negotiation Committee to agree to specific business facilitation measures to
be adopted before the end of the century (see related story).
This language represents a defeat for the U.S. and other countries which had sought a commitment that FTAA
nations would strike interim deals as a way of living up to the commitment made by hemispheric leaders in 1994. At the
Summit of the Americas that year, leaders agreed that negotiations should make "concrete progress" by 2000.
The U.S. had urged that FTAA countries, which had transition periods for their WTO commitments until 2000,
would implement them at that time. In addition, the U.S. argued that concrete progress could be made by striking interim
agreements in such areas as government procurement, standards and customs practices that would go into effect before
the conclusion of the negotiations in 2005.
The Business Forum report suggested a number of business facilitation measures that can be taken quickly to
improve conditions for trade in the hemisphere. It offered specific recommendations in the areas of market access,
investment, intellectual property and subsidies.
The Business Forum brought together over 1,000 business representatives from throughout the hemisphere.
The full report of the Business Forum of the Americas -- San Jose is available on Inside U.S. Trade's internet service
World Trade Online.
8
INSIDE U.S.TRADE - Special Report - March 23, 1998
General Objectives and Principles of the Negotiations
February 12
5:00 p.m
1.
GENERAL OBJECTIVES
a) To promote prosperity through increased economic integration and free trade among the
countries of our hemisphere, which are key factors for raising standards of living. improving the
working conditions of people in the Americas and better protecting the environment.
b) To establish a Free Trade Area, in which barriers to trade in goods and services and investment
will be progressively eliminated, concluding negotiations no later than 2005 and achieving
concrete progress toward the attainment of this objective by the end of this century.
c) [To establish fair, transparent and predictable rules and disciplines that will protect and
promote investment]
d) To maximize market openness through high levels of disciplines through balanced and
comprehensive agreements, building on the existing agreements in the hemisphere.
e) To provide opportunities to facilitate the integration of the smaller economies in the FTAA
process in order to realize their opportunities and increase their level of development.
f) [To ensure that our trade liberalization and environmental policies are mutually
supportive, taking into account efforts undertaken by the GATT/WTO and other
international organizations.]
g) [To further secure the observance and promotion of workers rights, as defined by
appropriate international conventions.]
2.
GENERAL PRINCIPLES
a)
[Negotiations will be held in a transparent manner to ensure the full participation of
all the member countries of the FTAA.]
b)
[Consensus is a fundamental principle for decision making in the FTAA process.]
c) The FTAA Agreement will be consistent with the rules and disciplines of the World Trade
Organization, WTO. With this purpose, the participating countries reiterate their commitment with
multilateral rules and disciplines, in particular with Article XXIV of GATT-1994 and its
Understanding of the Uruguay Round, and Article V of the General Agreement of Trade in
Services, GATS.
d) [The FTAA will attempt to improve upon WTO rules and disciplines wherever possible
and appropriate.]
e) The agreements reached will be balanced and comprehensive in scope, considering the
interests of all countries.
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f) [Negotiations will develop according to the sequence of each Issue area, without
excluding sectors or products]
g) Negotiations will begin simultaneously in all issue areas, under the agreement that all the
agreements reached constitute a single undertaking which shall embody all the rights and
obligations mutually agreed upon for its implementation. [However, agreements reached at an
early stage may be implemented on a provisional or a definitive basis by agreement prior to
the formal conclusion of the negotiations. Early agreements shall be taken into account in
assessing the overall balance of the negotlations.]
h) The FTAA can co-exist with bilateral and subregional agreements, to the extent that the rights
and obligations under these agreements are not covered by or go beyond the rights and
obligations of the FTAA.
i) [Countries may negotiate and Join the FTAA Individually or as members of a sub-regional
integration group negotiating as a unit.]
j) The agreements will not raise new barriers to trade and investment with non FTAA member
countries.
k) From the beginning of the negotiations, participating countries will avoid adopting, to the
greatest extent possible, policies that adversely affect trade in the hemisphere.
I) [Negotiations shall include trade in goods and services, investment and government
procurement at all levels of the political-administrative structure of the countries
negotiating the Agreement].
I) [The political administrative scope of the negotiation shall be subject to negotiation].
m) Special attention shall be given to the special needs, economic conditions (including transition
costs and possible internal dislocations) and opportunities of smaller economies, to ensure their
full participation in the FTAA process.
n) The rights and obligations of the FTAA will be shared by all countries. In the negotiation of the
various thematic areas, measures such as technical assistance in specific areas and longer
periods for implementing the obligations could be included on a case by case basis, in order to
facilitate the adjustment of smaller economies.
o) The measures agreed upon to facilitate the integration of smaller economies in the FTAA
process shall be transparent, simple and easily applicable, recognizing the degree of heterogeneity
among them.
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OBJECTIVES OF THE NEGOTIATION BY ISSUE AREA OF NEGOTIATION
1.
WORKING GROUP ON MARKET ACCESS
a.
To progressively eliminate, [starting in the year 2005], tariffs, and non tariff barriers, [for the
substantial trade] [for all trade] as well as other measures with equivalent effects, which restrict
trade between participating countries, consistently with the provisions of the WTO, including Article
XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and its Understanding on the
Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994
b.
All tariffs will be subject to negotiation.
C.
[Different trade liberalization time tables can be drawn up which could include special
treatment for countries, sectors and products].
d.
To facilitate the integration of smaller economies and their full participation in the FTAA
negotiations.
2.
WORKING GROUP ON CUSTOMS PROCEDURES AND RULES OF ORIGIN
Rules of Origin
a.
To develop an efficient and transparent system of rules of origin, including nomenclature
and certificates of origin, in order to facilitate the exchange of goods, without creating unnecessary
obstacles to trade.
Customs Procedures
a.
To simplify customs procedures, in order to facilitate trade and reduce administrative costs.
b.
To create and implement mechanisms to exchange information in customs issues among
FTAA countries.
C.
To design effective systems to detect and combat fraud and other illicit customs activities,
without creating unnecessary obstacles to foreign trade.
d.
To promote custom mechanisms and measures that ensure operations be conducted with
transparency, efficiency, integrity and responsibility.
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3.
WORKING GROUP ON INVESTMENT
a.
To establish a fair and transparent legal framework that leads to a stable and predictable
environment that protects investors, their investment and related flows and stimulate the
development of investment opportunities, without creating improper obstacles to extra-
hemispheric investments, in accordance with paragraph 2 of the Cartagena Declaration and
paragraph 2 of the Belo Horizonte Declaration.]
4.
WORKING GROUP ON STANDARDS AND TECHNICAL BARRIERS TO TRADE
a.
To eliminate and prevent unnecessary technical barriers to trade in the FTAA, based on the
proposals contained in the Common Objectives Paper approved by the Working Group.
5.
WORKING GROUP ON SANITARY AND PHYTOSANITARY MEASURES
a.
Ensure that sanitary and phytosanitary measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable discrimination between countries or a disguised
restriction to international trade, in order to prevent protectionist trade practices and facilitate trade in
the hemisphere. Based on the Agreement of the WTO/SPS, said measures shall only be applied to
achieve the appropriate level of protection for human, animal or plant life or health, shall be based on
scientific principles, and shall not be maintained without sufficient scientific evidence.
b.
Negotiations in this area involve identifying and developing measures needed to facilitate
trade, following and examining in depth the provisions set down in the WTO Agreement on the
Application of Sanitary and Phytosanitary Measures
6.
WORKING GROUP ON SUBSIDIES ANTIDUMPING AND COUNTERVAILING DUTIES
a.
Eliminate agricultural export subsidies affecting trade in the Hemisphere.
b.
Identify other trade distorting practices for agriculture products including those that have an
effect equivalent to agricultural export subsidies and bring them under greater discipline.
C.
Examine ways to deepen, if appropriate, existing disciplines provided for in the WTO
Agreement on Subsidies and Countervaiting Measures and enhance compliance with the terms of the
WTO agreement on subsidies and countervailing measures.
d.
Achieve a common understanding with a view to improving, where possible, the rules and
procedures regarding the operation and application of trade remedy laws in order to not to create
unjustified barriers to trade in the Hemisphere.
e.
The negotiations must examine the possibility of eliminating anti-dumping measures in the
future framework of a Free Trade Area of the Americas.
7.
WORKING GROUP ON SMALLER ECONOMIES
All contents of the table were considered in the sections of general objectives.
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8.
WORKING GROUP ON GOVERNMENT PROCUREMENT
a.
The broad objective of negotiations in government procurement is to expand access to the
government procurement markets of the FTAA countries.
More specifically, the objectives of the negotiations are :
To achieve a normative framework that ensures openness and transparency of government
procurement processes, without necessarily implying the establishment of identical government
procurement systems in all countries :
To ensure non-discrimination in government procurement within a scope to be negotiated : and
To ensure impartial and fair review for the resolution of procurement complaints and appeals
by suppliers and the effective implementation of such resolutions.
9.
WORKING GROUP ON INTELLECTUAL PROPERTY RIGHTS
a.
To reduce distortions in trade in the Hemisphere and to promote and ensure adequate and
effective protection to intellectual property rights.
b.
Changes in technology should be taken into account.
10.
WORKING GROUP ON SERVICES
a.
Establishment of disciplines to progressively liberalize trade in services, so as to permit the
achievement of a hemispheric free trade area under conditions of certainty and transparency.
b.
Ensure the integration of smaller economies into the FTAA process.
11.
WORKING GROUP ON COMPETITION POLICY
General Objectives :
a.
To guarantee that the benefits of the FTAA liberalization process not be undermined by anti-
competitive business practices.
Specific Objectives :
a.
To advance towards the establishment of juridical and institutional coverage at the national,
sub-regional or regional level, that proscribes the carrying out of anti-competitive business practices;
b.
To develop mechanisms that facilitate and promote the development of competition policy and
guarantee the enforcement of regulations on free competition among and within countries of the
Hemisphere.
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STRUCTURE OF THE NEGOTIATIONS
OF THE FTAA
Meeting of the
Ministers
Responsable for Trade
Consultative Group on
Trade Negotiation
the Smaller Economics
Administrative Secretariat
Committee
Market
Agriculture
Investment
Services
Government
Intellectual
Subsides and
Competition
Dispute
Access
Procurement
Property
Anddumping
Policy
Resolution
1
Tariff:
Sunitary and
Origin
Phirosanitary
Customs
Procedures
Technical
Barriers
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TERMINOS DE REFERENCIA PARA EL GRUPO CONSULTIVO SOBRE
ECONOMÍAS MÁS PEQUEÑAS
Los Ministros acordaron establecer un Grupo Consultivo sobre Economías más
Pequeñas, el cual estará abierto a todos los paises y responderá al Comité de
Negociaciones Comerciales. El Grupo tendrá las siguientes funciones:
1. Seguir el proceso de ALCA, dando seguimiento a las inquietudes e intereses
de las Economias más Pequeñas
2. Llevar a la atención del Comité de Negociaciones Comerciales los temas de
interés para las Economías más Pequeñas y hacer las recomendaciones
pertinentes.
TERMS OF REFERENCE FOR THE CONSULTATIVE
CONSULTATIVE GROUP ON SMALLER ECONOMIES
Ministers decided to establish a Consultative Group on Smaller Economies, open
to all countries and reporting to the Trade Negotiations Committee. The Group will
have the following functions:
1. Follow the FTAA process, keeping under review the concerns and interests of
the smaller countries.
2. Bring to the attention of the Trade Negotiations Committee, issues of concern to
smaller economies and make recommendations to address these issues.
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TERMS OF REFERENCE FOR REVIEW OF THE FEASIBILITY STUDY ON
CREATION Of A TEMPORARY ADMINISTRATIVE SECRETARIAT FOR
NEGOTIATION OF THE FREE TRADE AREA OF THE AMERICAS
(Prepared by the OAS-IDB-ELAC Tripartite Committee at the request of the
Ministers of Trade in the Western Hemisphere)
At the Third Meeting of the FTAA Preparatory Committee, delegates from the 34 countries
of the Hemisphere agreed to the following:
1. The site of the Secretariat and the site of the negotiations will be located in the same
place;
2. Secretariat support staff should be reduced from that proposed in the feasibility study.
3. The legal framework for creation of the Administrative Secretariat will be defined by
the terms contained in option E, Chapter V of LEGAL REQUIREMENTS, in the
document, "Feasibility Study for an Administrative Secretariat for FTAA
Negotiations."
These agreements imply the need for requesting the Tripartite Committee to revise the
study in accordance with the following criteria:
1. The Secretariat, which reports to the Negotiating Committee, will carry out the
functions established in Annex 4 of the Belo Horizonte Ministerial Declaration:
a) Provide logistical and administrative support for the negotiating groups;
b) Arrange for translation of documents and interpretation during deliberations;
c) Maintain official negotiation documents;
d) Arrange for document distribution and publication.
2. Taking into account the need to minimize costs and bureaucracy, personnel must be
reduced. Administrative personnel should be reduced from 13 to (4) (5) (6) staff
members. Additional personnel may be contracted on a temporary basis.
3. Operating costs will be shared among the host city and the Tripartite Committee
institutions within existing financial resources of the three institutions and in
conformity with their legal procedures.
4. The study should reflect wages prevailing in the local market.
5. The official documents will be published in the following languages: Spanish, English,
Portuguese, and French.
Ministerial Meetings will be held in the four languages indicated above.
Vice-Ministerial Meetings and the meetings of Negotiating Groups will be held in
at least English and Spanish.
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FTAA
SECRETARIAT - NEGOTIATIONS VENUE
VARIABLE
PANAMA
MIAMI
MEXICO
KINGSTON
BOCOTA-SANTA FE
LIMA
RIO DE JANEIRO
Complimentary
Complimentary
Complimentary
Non-Complementary
Complimentary
Complimentary
Compaimentary
AS needed with potential
230 m²
A= needed
A: needed
As needed, up to 1000
850 m² to 1700 m²
400 m²
INFRASTRUCTURE
for future growth
m²
Bullding. unlimited
Complimentary
Building.
Building with Internet
Complimentary
Internet BOCOSA, rooms
Intelligent building
Telephone equipment
access
Imelligent building
for simultanous
Audhoriums, meeting
Audhorizems
CONTRIBUTIONS TO THE
meetings, residences for
room. Phones, cellular
Mersing rooms, fax.
OPERATION OF THE
delegations or offices for
phones, computers, lap-
computers, imp-tops,
ECRETARIAT
delegations of smaller
tops. Imemel fax facilities
Internet.
economies, Building in
for delegates.
the Centro Bancario. A
house for each
subregions/group
Non-Complimentary
Non-Complimentary
Non-Complimentary
Non-Complimentary.
Non-Complimentary
Non-Complimantary
Comptimentary
Availability of
Availability of
Availability of translators
Availibity of
Aveilability of
Availability of
translation/ imerpretation.
transiation/Imerprctation
trensistion/imterpretation
LOGISTIC SUPPORT
and Imerpreters
transfetors/ime/preters,
translation/interenetion
tronciation/Interpretation
services, reception.
Immigration/custome
cervices at reduced CO2,
transportation.
Convertion Center with
recording and parking.
ansistance
immigretion/customs
immigration assistance
rooms for multiple use
Immigration / customs
assitance
FINANCIAL SUPPORT
$250,000.00
$250,000.00 annualy
Business sector
ACCESS
on-Stop
Connecting
19/59
02/219
13/64
6/105
13/42
17/55
21/48
Igms
mights
Alrline tickets/lodging
COSTS FOR THE
Airline lickers/ lodging
Airtine lickets/ lodging
Alrina lickets/ lodging
Airline tickets/ lodging
Aldino sickets/lodging
20 % discount on air fare
Reduced notel retes
ELEGATIONS
Special notel rates
Corporate hotel rates
Corporate notel retes
Corporate notel rates
Corporate notel rates
Lodging: special rates
of Diam (New York=100%)
60.50%
91.20%
68.50%
62.80%
64.70%
102.80%
58.30%
ource: Country delegations
(5-6): Tripartite Committee Report
OTO/OTO
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Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
003. paper
U.S. Position for the Third Free Trade Area of the Americas
02/03/1998
P1/b(1)
Preparatory Committee Meeting [cover only] (1 page)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
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P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA|
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
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financial information [(a)(4) of the PRA|
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information |(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRAJ
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
h(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells |(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
UNCLASSIFIED
ATTACHMENT A
Organization and Issues of the FTAA negotiations
(Draft U.S. Proposal, February 10, 1998)
Management of the negotiations (Functions).
Ministerials: Establishment of dates and the future role
The San Jose Declaration should recommend that at least two dates for future
Ministerials be set: October 1999 for the next Ministerial after San Jose, and a
Ministerial "mid-term review" in June 2001. Setting October 1999 for the next
Ministerial would give impetus to the Negotiating Groups to work apace for a year (in
light of October 1998 date by which all the Negotiating Groups should have held their
first meeting) and allow for any immediate "corrections" to the work program established
in each Negotiating Group. This also would help ensure that those Negotiating Groups
negotiating interim agreements reach closure on those negotiations by the October
1999 Ministerial allowing for "concrete progress" by the end of the century.
Trade Negotiation Committee (TNC)
The Trade Negotiation Committee (TNC) should consist of the 34 Vice Ministers or
Chief FTAA negotiators. The TNC should meet twice a year and serve as a forum to
which political questions should be taken by any of the Negotiating Groups. The TNC
would provide the supervision of the negotiations between Ministerials and provide an
additional element of transparency to the negotiating process, which is especially
important for the smaller economies. The TNC would be chaired by selection among
the 34 Vice Ministers on individual merit. The Chair of the TNC will rotate at Ministerial
meetings. Meetings of the TNC will take place at the site where the negotiations and
temporary administrative secretariat are located, or at another agreed site
The TNC should hold its first organizational meeting before the end of June 1998.
Negotiating Groups: Overall mandate and initial timetable
Each Negotiating Group will develop the text of the FTAA chapter (and negotiate
implementation schedules where appropriate), with the aim of producing a bracketed
text of the entire FTAA for Ministers by the time of the Ministers' "mid-term review" in
June 2001. Texts should reflect the FTAA overall objective of a comprehensive, state-
of-the-art, hemisphere-wide free trade agreement as well as assume full adherence to
the obligations of the WTO Agreement, if one exists in its respective discipline. The
Negotiating Groups should be guided by the objectives and general principles for the
1
UNCLASSIFIED
ASSIFIED
negotiations.
For those Negotiating Groups addressing areas in which the Ministers mandate
concrete progress measures be implemented, the negotiations on these concrete
measures should be concluded by the October 1999 Ministerial.
Each Negotiating Group also should continue efforts begun in the Working Group stage
toward ensuring timely and full implementation of countries' WTO obligations.
Negotiating Groups should take into account the findings of the Study Group on
Environment and Trade and the Study Group on Labor and Trade.
Negotiating Groups should hold their first organizational meeting before the end of
October 1998.
Chairmanship of the negotiating groups
Negotiating Groups would be chaired by officials put forward in advance of the San
Jose Ministerial by individual countries (e.g., the way countries indicated in advance
whom they were putting forward as candidates for chairing the 12 Working Groups).
Chairs would serve until the next Trade Ministerial, at which point there would be fresh
decisions to appoint new chairs or to extend certain existing chairs. Each Negotiating
Group would elect a Vice Chair to assist the Chair, with a presumption that the Vice
Chair would be from a different country than the Chair. The Vice Chair would assume
Chairmanship if the original Chair no longer could serve (e.g., because of changes in
national government or retirement from government service).
The selection of Negotiating Group Chairs should be based on a "clean slate," i.e.,
there should be a presumption that current Chairs of the Working Groups would not
automatically become the Chairs of the Negotiating Groups established in the same
issue areas.
List of Initial Negotiating Groups to be established:
Negotiating Group on Market Access.
Negotiating Group on Investment.
Negotiating Group on Services.
Negotiating Group on Government Procurement.
Negotiating Group on Subsidies and Export-Related Practices.
2
UNCLASSIFIED
UNCLASSIFIED
Negotiating Group on Competition Policy.
Negotiating Group on Intellectual Property Rights.
Negotiating Group on Antidumping and Countervailing Duties.
Negotiating Group on Dispute Settlement
Description of area of responsibility and specific mandates for each
Negotiating Group
Negotiating Group on Market Access (NGMA). The NGMA will address tariffs in both
the agricultural and industrial sectors, covering substantially all trade as required by
GATT Article XXIV. In addition, the NGMA will address non-tariff measures,
safeguards, and other measures affecting imports.
Given that the areas of technical barriers to trade, customs valuation and procedures,
including rules of origin and their implementation, and sanitary and phytosanitary
measures will have a direct influence on the effectiveness of most measures under the
FTAA related to market access, the NGMA will call upon experts in these areas to
address these issues as they require attention.
These experts also will meet, as necessary, as "break-out" groups or ad hoc groups
and be accountable under the umbrella of the NGMA. The TBT and SPS experts would
consider practical mechanisms for strengthening regional adherence to the relevant
WTO (TBT/SPS) Agreement obligations, including mechanisms to facilitate and
enhance broader regional participation and cooperation in the development of
international standards; would address regional barriers to trade; and, would address
identified areas that need further strengthening. The customs procedures and rules of
origin experts would address fundamental issues, both with regard to developing rules
of origin and proceeding with hemisphere-wide customs simplification, with a view to
developing both general principles and fundamental obligations, and would consider
practical mechanisms for strengthening regional adherence to the relevant WTO
(Customs Valuation/PSI) Agreement obligations.
The NGMA will continue to maintain the hemispheric databases on tariff and non-tariff
measures to assist in the conduct of the negotiations in this area.
Negotiating Group on Investment (NGI). The NGI initially will develop provisions for an
Investment Chapter in the FTAA Agreement which will provide a set of general
obligations applicable to investment in both goods and services. Country-specific lists
of limited exceptions and reservations to those obligations will be detailed in an annex
to the Investment Chapter. The NGI also will identify an investor-to-state dispute
3
UNCLASSIFIED
UNCLASSIFIED
mechanism and assist in the development of a mechanism for state-to-state investment
disputes.
Negotiating Group on Services (NGS). The NGS initially will develop provisions for a
Services Chapter for the FTAA Agreement to establish rules affecting three of the four
modes of delivery of services, i.e. excluding commercial presence which would be dealt
with in the NGI. The obligations in the FTAA Chapter on services will apply in principle
to all sectors. A list of negotiated, limited, specific exceptions and reservations will be
detailed in an annex to the Services Chapter.
Negotiating Group on Government Procurement (NGGP). The NGGP initially will
develop provisions for a Government Procurement (GP) Chapter in the FTAA
Agreement to address transparency in government procurement. The NGGP then will
develop provisions for the GP Chapter to address non-discrimination and list in an
annex entities to be covered. Both the transparency provisions as well as the non-
discrimination provisions and annex on coverage will form the final GP Chapter of the
FTAA Agreement.
Negotiating Group on Subsidies and Export-Related Practices (NGSERP). The
NGSERP will address subsidies, export practices with effects similar to export subsidies
and other forms of export-related practices which may distort or restrict trade in or with
the hemisphere. Beyond the issue of subsidies as it is defined and/or addressed in
WTO Agreements, the scope of this work would potentially encompass such practices
as differential export taxes; export rebates; export restrictions and prohibitions; and
price pooling and other export practices of state trading enterprises.
In those areas where comprehensive and meaningful reform and disciplines can only
be obtained in a multilateral setting, the NGSERP would strive to develop consensus on
the best ways to advance progress in reform efforts in WTO bodies, seeking to
maximize the Western Hemisphere's leverage in the multilateral process.
Negotiating Group on Competition Policy (NGCP). The NGCP initially will develop
provisions for a Competition Policy (CP) Chapter in the FTAA Agreement to address the
enactment and enforcement of competition policy laws which proscribe anticompetitive
business conduct as well as address consultation, cooperation, and coordination of
efforts between and among countries in the hemisphere with respect to antitrust
investigations. The NGCP then will develop provisions for the CP Chapter on
designated monopolies and state enterprises to ensure that trade liberalization
achievements in the FTAA are not undermined by anticompetitive conduct or
discrimination by these entities.
Negotiating Group on Intellectual Property Rights (NGIPR). The NGIPR will develop
provisions for an IPR Chapter for the FTAA Agreement to establish both substantive
4
UNCLASSIFIED
CLASSIFIED
standards in all areas of intellectual property as well as enforcement obligations. The
provisions in the FTAA Chapter will build upon existing international agreements; create
additional standards concerning the availability, scope, use, and enjoyment of IPR with
respect to copyright and neighboring rights, encrypted program-carrying satellite
signals, trademarks, patents, layout designs of integrated circuits, trade secrets,
protection of test data and industrial designs, including provisions as necessary to
address changes in technology (i.e. copyright and biotechnology); and, provide for
enforcement of IPR, including civil and administrative remedies, provisional measures,
criminal procedures and penalties, and requirements related to border measures.
Negotiating Group on Antidumping and Countervailing Duties (NGAC). The NGAC will
negotiate procedural transparency and due process provisions, and also will center its
efforts generally on improving understanding of and compliance with WTO rules. After
analyzing case studies and exchanging views on the various procedural and
administrative means by which investigating authorities are conducting proceedings and
allowing involved parties to defend their interests, the NGAC will seek to identify a set of
minimum common standards or preferred methods of implementation which could
improve the transparency of and procedures regarding the process by which AD/CVD
laws are applied, lessen costs to authorities and the parties, and avoid unjustified
impediments to intra-Hemispheric trade.
Negotiating Group on Dispute Settlement (NGDS). The NGDS will continue with its
terms of reference as mandated at the Belo Horizonte Ministerial until bracketed texts
are produced, i.e., by the time of the Ministers' "mid-term review" in June 2001, at which
time an additional specific mandate will be provided.
Study Groups to be established
Study Group on Environment. At the Belo Horizonte Ministerial the Ministers agreed to
keep the issue of environment and its relation to trade under consideration, in light of
further developments in the work of the WTO Committee on Trade and Environment
(CTE). At this stage in the FTAA process, the establishment of a Study Groups on the
linkage between environment and trade is appropriate. At a minimum, this Study Group
should respond to the Miami Summit mandate that "[f]ree trade and increased
economic integration are key factors for sustainable development. This will be
furthered as we strive to make our trade liberalization and environmental policies
mutually supportive, taking into account efforts undertaken by the GATT/WTO and
other international organizations."
Study Group on Labor. At this stage in the FTAA process, the establishment of a Study
Group on the linkage between labor and trade is appropriate. At a minimum, this Study
Group should respond to the Miami Summit mandate that "[a]s economic integration in
the Hemisphere proceeds, we will further secure the observance and promotion of
5
UNCLASSIFIED
UNCLASSIFIED
worker rights, as defined by appropriate international conventions."
6
UNCLASSIFIED
UNCLASSIFIED
ATTACHMENT B
Terms of Reference for FTAA Study Group on Environment
(Draft U.S. Proposal, February 10, 1998)
Bearing in mind the following commitments made by the Leaders and the Ministers of
Trade:
In Miami: "Free trade and increased economic integration are key factors for
better protecting the environment" and "Free trade and increased economic
integration are key factors for sustainable development. This will be furthered as
we strive to make our trade liberalization and environmental policies mutually
supportive, taking into account efforts undertaken by the GATT/WTO and other
international organizations" and "Develop environmental policies and laws with
the goal of ensuring that economic integration of the region occurs in an
environmentally sustainable manner.
In Denver: "We are committed to transparency in the FTAA process. As
economic integration in the Hemisphere proceeds, we welcome the contribution
of the private sector and appropriate processes to address the protection of the
environment [...], through our respective governments."
In Cartagena: "We reaffirm our commitment to transparency in the FTAA
process. We direct our Vice Ministers to consider appropriate processes to
address the protection of the environment. After having received the report of
the committee that will be presented at the WTO Ministerial Meeting in
Singapore, we will consider creating a study group on this issue based upon
recommendations from our Vice Ministers. To this end, we and our Vice
Ministers will consider how to proceed in the construction of the FTAA in this
area."
In Belo Horizonte: "The issue of the environment and its relation to trade has
been considered by our Vice Ministers since the Cartagena meeting and is the
subject of ongoing discussions within the WTO and within the FTAA process.
We will keep this issue under consideration, in light of further developments in
the work of the WTO Committee on Trade and Environment." and "We reiterate
our commitment to transparency in the FTAA process. In this sense, we
consider the inputs from stakeholders of our civil societies to be important to our
deliberations including those from the labor sectors, and we encourage all
countries to take them into account through mechanisms of dialogue and
consultation."
1
UNCLASSIFIED
UNCLASSIFIED
The Ministers establish a Study Group on Environment with the following terms of
reference:
1.
Examine the work of the WTO Committee on Trade and Environment (CTE) and
identify any points of relevance to the construction of the FTAA. In particular, the
Study Group should review CTE's work on the environmental benefits of
removing trade restrictions and distortions.
2.
Discuss how to better inform and foster a dialogue with members of civil
society/general public on issues related to economic integration and the
environment, and provide recommendations to the Trade Negotiations
Committee (TNC).
3.
Compile information on environment-related provisions in the existing sub-
regional and bilateral arrangements in the hemisphere, and identify the various
methods of addressing environmental issues in existing trade agreements and
arrangements: MERCOSUR, NAFTA, Andean Community, Central American
Common Market, CARICOM, with the goal of identifying relevant relationships
between economic integration and environmental issues.
4.
Exchange views on the extent to which other trade-related activities stemming
from the 1996 Santa Cruz Summit on Sustainable Development, the trade-
related elements of the Declaration and Agenda 21 resulting from the 1992 Rio
Summit on Sustainable Development, and sustainable development-related
activities stemming from the 1994 Miami Summit might provide guidance on
making our trade liberalization and environmental policies mutually supportive in
the hemispheric integration process.
5.
Provide recommendations to the TNC on appropriate processes to address the
protection of the environment during the construction of the FTAA.
The Study Group should encourage the participation of representatives from the
Hemisphere's environmental ministries. It should be open to receiving contributions
from outside interested parties concerning the subjects under examination by the Study
Group.
The Study Group will hold its first meeting before the end of October 1998, and provide
its initial findings at the October 1999 Ministerial.
2
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ATTACHMENT C
Terms of Reference for FTAA Study Group on Labor
(Draft U.S. Proposal, February 10, 1998)
Bearing in mind the following commitments made by the Leaders and the Ministers of
Trade:
In Miami to "further secure the observance and promotion of worker rights, as
defined by appropriate international conventions. We will avoid disguised
restrictions on trade, in accordance with the GATT/WTO and other international
obligations."
In Denver to welcome "appropriate processes to address the protection of the
environment and the further observance and promotion of worker rights, through
our respective governments."
In Cartagena, to "recognize the importance of further observance and promotion
of worker rights and the need to consider appropriate processes in this area,
through our respective governments."
In Belo Horizonte, to "transparency in the FTAA process," and to "consider the
inputs from stakeholders of our civil societies to be important to our deliberations
including those from the labor sectors, and we encourage all countries to take
them into account through mechanisms of dialogue and consultation."
The Ministers establish a Study Group on Labor with the following terms of reference:
1.
Discuss how to better inform and foster a dialogue with members of civil
society/the general public on issues related to economic integration and its
benefits for and effects on workers, and provide recommendations to the Trade
Negotiations Committee (TNC).
2.
Exchange views on the statements and recommendations provided in the
"Declaration of the Tenth Inter-American Conference of Ministers of Labor"
resulting from the Labor Ministerial meeting in Buenos Aires in 1995, the
"Declaration of the Tenth Inter-American Conference of Ministers of Labor,
Presented at the Meeting of Ministers of Trade, Belo Horizonte (Brazil), May
1997," and develop appropriate responses to them for the TNC's review and for
transmittal to the Ministers of Labor for their consideration at their subsequent
meeting.
3.
Compile information on labor-related provisions in the existing sub-regional and
1
UNCLASSIFIED
UNCLASSIFIED
bilateral arrangements in the hemisphere, and identify the various methods of
addressing labor issues in existing trade agreements and arrangements:
MERCOSUR, NAFTA, Andean Community, Central American Common Market,
CARICOM, with the goal of identifying relevant relationships between economic
integration and labor issues.
4.
Exchange views on the extent to which other labor-related activities in the
hemisphere, such as those stemming from the 1995 Inter-American Conference
of Ministers of Labor and the Santiago Summit of the Americas, might provide
guidance on promoting worker rights in the hemispheric integration process.
5.
Provide recommendations to the TNC on appropriate processes to further secure
the observance and promotion of working rights as hemispheric integration
proceeds.
The Study Group should encourage the participation of representatives from the
hemisphere's labor ministries. It should be open to receiving contributions from outside
interested parties concerning the subjects under examination by the Study Group.
The Study Group will hold it initial meeting before the end of October 1998, and provide
its initial findings to the October 1999 Ministerial.
2
UNCLASSIFIED
UNCLASSIFIED
ATTACHMENT D
Proposal for FTAA Negotiating Site
(Draft U.S. Proposal, February 10, 1998)
All negotiating groups should meet at a single site to minimize cost to
delegations and facilitate participation by countries in which one official may
have responsibility for several negotiating groups.
Also, a single site greatly reduces the burden on the Administrative
Secretariat to arrange consistently high-caliber clerical and logistical
support.
The host city should be responsible for funding conference rooms and office
equipment (e.g., computers, telephones, fax machines, photocopiers, etc.).
Ministerials would continue to be funded by the host country.
The Trade Negotiating Committee ordinarily would meet at the site of the
negotiating groups but could meet in other locations if invited to do so and if the
host country paid for the incremental costs of holding the Trade Negotiating
Committee meeting at that location. (Incremental costs would include per diem
and airfare of the Administrative Secretariat to host site and provision of
clerical/logistical support, any increase in fees for interpretation/translation, etc.)
UNCLASSIFIED
UNCLASSIFIED
ATTACHMENT E
Proposal for FTAA Temporary Administrative Secretariat
(Draft U.S. Proposal, February 10, 1998)
Background
At the conclusion of the III Trade Ministerial Meeting, the Trade Ministers asked the
Tripartite Committee to undertake a feasibility study on alternatives for establishing a
temporary Administrative Secretariat to support the FTAA negotiations. The Ministers
agreed the temporary Administrative Secretariat should undertake the following tasks:
provide logistical and administrative support for the negotiating groups;
arrange for translation of documents and interpretation during
deliberations;
maintain official negotiation documents; and
arrange for document distribution and publication.
Assumptions
Administrative Secretariat should be organized in a way to minimize cost and
bureaucracy.
Administrative Secretariat will be accountable to an appropriate body of the
FTAA (see below).
Administrative Secretariat will prepare transcriptions of bracketed text from
negotiating sessions. (The Tripartite Committee will compile inventory-like
documents if requested by the negotiating groups. The Negotiating Group
Chairs will prepare minutes, if any.)
Proposal
Administrative Secretariat staff should consist of an office manager and 3
administrative employees (i.e., one for logistics, one to catalog and maintain
documents, one to oversee translation of documents).
Staff for the temporary Administrative Secretariat would consist of 4 officials
funded by a contract or technical cooperation agreement with the individual
Tripartite Committee institutions; this obviates the need for legal chartering of
new institution or new grants of privileges and immunities.
Staff would be located at the same site as the negotiating groups' meetings.
1
UNCLASSIFIED
UNCLASSIFIED
Office Director would take his/her direction from an appropriate FTAA body
(either a "secretariat board of directors" composed of a geographically-
representative group of FTAA officials or the full Trade Negotiating Committee) --
not from any of the Tripartite Committee institutions.
Administrative Secretariat would contract translation and interpretation support at
the negotiating site.
Logistical/Clerical support for negotiation sessions would either be provided by
the host city or be contracted by the Administrative Secretariat. The
Administrative Secretariat would supervise the clerical support staff.
Costs of the Administrative Secretariat (e.g., telephone expenses, publication
and distribution costs, photocopying, office supplies, and costs of contracts (e.g.,
the interpretation/translation services and clerical/logistical services, if not
provided by host city)) would be borne by the Tripartite Committee institutions
within existing financial resources of the three institutions by reprogramming
funds (e.g., existing OAS voluntary funds) or through a technical cooperation
agreement (in the case of the IDB).
The Tripartite Committee would continue to be the resource for non-
administrative technical support, similar to that provided to FTAA Working
Groups. Tripartite Committee would be asked to designate one staff member as
the liaison officer between a given FTAA negotiating group and the Tripartite
Committee. Requests for technical support from the negotiating group would be
directed to that official, who would be responsible for assembling the appropriate
Tripartite Committee expertise.
2
UNCLASSIFIED
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DOCUMENT NO.
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004. list
Attachement F: Illustrative List of Concrete Progress Measures (3
02/10/1998
P1/b(1)
pages)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information |(a)(1) of the PRAI
b(1) National security classified information |(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA|
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency |(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA|
financial information [(a)(4) of the PRA|
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors (a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA|
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions |(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells |(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
02/03/98
19:21
202 3959675
IAPL/USTR
001/008
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
OFFICE OF THE WESTERN HEMISPHERE
8
DATE:
2-3-98
TOTAL PAGES SENT
(5)
Name
Agency
Office #
Fax #
TO: TPSC Sub-Committe on Free Trade Area of the Americas
(1)Bryan Samuel
State/ARA
647-6755
647-0791
(3) Tim Stater
State/EB
647-1503
647-1537
(Regina Vargo
DOC
482-5324
482-4736
(6) Andrea Malito
DOC
482-2314
482-4726
(x) Barbara Wellbury
DOC
482-
482-
(7) Carol Goodloe
USDA
720-1325
690-1093
(11)Betsy White
Labor
219-6096
219-5071
(2) Karl Hofmann
NSC
456-9136
456-9130
(x) Dan Lesmez
OSE
456-7580
456-7586
(8) Bill Schall
Treasury
622-0208
622-1731
(13) Caldwell Harrop
DOJ
514-6127
514-4508
(14)Henry Santiago
DOE
586-6143
586-0013
0148
(15)David van Hoogstraten
EPA
260-1810
260-3828
(16)Martin Koubek
DOT
366-6927
366-7417
(19)Linda Horton
FDA
(301)827-3344
(301)443-6906
(20)Lael Brainard
NEC
395-5104
395-6853
(21)Carolyn Thompson
CEA
395-3114
395-6809
(xx) Nancy Schwartz
OMB
395-3720
395-5770
(xx)James Stamps
ITC
205-3227
205-2340
(5) Hugo Llorens
State/EPSC
647-0614
736-7618
(18)JoEllen Urban
PTO
(703)305-9300
(703)305-8885
(12)John Becker
USAID
712-0761
216-3262
(10)Jerry Worley
U.S. Customs
927-0803
927-6892
(xx)Lawrence Finfer Interior
208-7786
208-4867
(xx)Paul Karlsson
FTC
326-2390
326-2884
FROM: Karen Lezny, USTR Director for FTAA Affairs
PHONE:
(202) 395-5190
FAX:
(202) 395-9675
CONTACT: Please call (202)395-6135 if you have problems receiving this fax.
SUBJECT: PrepCom presentation on Business Facilitation
02/03/98 19:22
202 3959675
IAPL/USTR
1
002/008
Attached is a copy of the draft presentation on business facilitation measures which the
Costa Rican Chair has prepared. We would appreciate your input on how to react to
these initiatives. Please contact Jennifer Stagner at USTR on 395-5190 if you have
any comments on attached.
We intend to draft guidance today, separate from the TPSC paper your agency's TPSC
rep should have received today and circulate it for interagericy clearance by Thursday
noon
Attached is the draft guidance paper. It
follows the same format as the Costa Rican
proposal I'd appreciate any comments you have.
Thanks - Jennifer
2
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DOCUMENT NO.
SUBJECT/TITLE
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005a. presentation
FTAA Business Facilitation - Proposal for actions to be implemented
ca. 02/1998
P1/b(1)
before Year 2000 (3 pages)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA|
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy |(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions |(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
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DOCUMENT NO.
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005b. paper
Re: Costa Rican FTAA Business Facilitation Proposal (3 pages)
ca. 02/1998 P1/b(1)
COLLECTION:
Clinton Presidential Records
National Economic Council
Brainard, Lael
OA/Box Number: CF 1188
FOLDER TITLE:
Latin America - Santiago - Summit of Americas - Trade [1]
2009-1155-F
ke2432
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)|
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute |(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRA|
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA|
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA|
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.