I. BACKGROUND
- At their meeting in San José, Costa Rica, in March 1998, Ministers
Responsible for Trade in the Hemisphere — while affirming their commitment
to the principle of transparency in the FTAA negotiation process, and
acknowledging and welcoming the interests and concerns expressed by
different sectors of civil society in relation to the FTAA — decided to
establish the Committee of Government Representatives on the Participation
of Civil Society to receive submissions, analyze them and present the
range of viewpoints for consideration
- In fulfillment of this mandate, in October 1998 the Committee approved
a work plan in which it was agreed to extend an “Open Invitation to Civil
Society”, to facilitate their constructive participation, with a reply
period lasting from November 1, 1998 to March 31, 1999. On the basis of
submissions received, the Committee prepared a report which was presented
in November 1999, at the Fifth Trade Ministerial meeting held in Toronto,
Canada, which was subsequently published on the official FTAA website.
- At their meeting in Toronto, Canada, Ministers reaffirmed their
commitment to the principle of transparency in the FTAA negotiation
process, and to conducting their negotiations in such a way as to broaden
understanding among the general public, and generate support for the FTAA.
At the same time they welcomed the report presented by the Committee of
Government Representatives on the Participation of Civil Society — a
mechanism designed to achieve the aforementioned goals — and they
requested the Committee to obtain permanent collaboration from civil
society on trade-related issues relevant to the FTAA process, by means of
written submissions, using the San José Declaration as a frame of
reference. On this occasion, the Committee was again given the task of
presenting a report describing the entire range of views received, for
consideration by Ministers at their Buenos Aires meeting in April 2001.
II. ACTIVITIES OF THE COMMITTEE
- During this second stage of FTAA negotiations, the Committee of
Government Representatives on the Participation of Civil Society met on
seven occasions: March 21 and 22, 2000 (Fourth Meeting); June 20 and 21,
2000 (Fifth Meeting); August 21, 2000 (Sixth Meeting); October 23 and 24,
2000 (Seventh Meeting), December 18 and 19, 2000 (Eighth Meeting), January
9 and 10, 2001 (Ninth Meeting) and February 13 and 14 (Tenth Meeting).
- At its March 2000 meeting, the Committee drew up its work plan and
agreed to extend a new open invitation to civil society to present
submissions in writing. The work plan, included as Annex A, specified the
date on which the invitation would be issued (April 10, 2000) and the
period for receiving submissions (up to September 30, 2000).
The open invitation, included as Annex B, set out the procedures for
presenting submissions, as well as the conditions they would need to
satisfy to be considered by the Committee.
- The Committee of Government Representatives asked the Tripartite
Committee, in its analysis of submissions received, only to consider the
formal requirements established in paragraph Nº 4 of the open invitation.
It instructed the Tripartite Committee that, where submissions did not
satisfy the requirements, their proponents should be sent communication
inviting them to make modifications, setting a deadline of October 14,
2000 for such adjustments to be presented.
- The Committee of Government Representatives also considered proposals
for publishing the list of national delegates to the Committee, or,
failing that, the FTAA contact points in each country. As a result of its
proposal, the Trade Negotiations Committee agreed to publish the list of
government contacts for each country, for the FTAA bodies, on the latter’s
website.
- As part of the Committee’s deliberations, delegations exchanged
information on their internal consultation processes, as well as on the
mechanisms and means used to disseminate the open invitation to civil
society.
- Finally, having approved the structure and contents of the Report to
Ministers, the Committee set to work in preparing t he present document.
III. SUBMISSIONS RECEIVED
GENERAL CHARACTERISTICS OF THE SUBMISSIONS
- A total of 82 submissions were received, 77 of which satisfied the
formal requirements established in the open invitation. Information on the
sender, country of origin and other information required in the work plan,
for each of the 77 contributions, is provided in Annex C.
The senders of the five contributions that did not satisfy the formal
requirements of the open invitation, were informed the possibility of
fulfilling these requirements up to October 14, 2000. The suggested
re-submissions were not received by the deadline, however.
- Of the submissions received, 48% come from organizations and/or
individuals from South American countries, and 70% of these came from
Chile. Contributions from North American countries accounted for 47%, of
which 72% were from United States. Central America and the Caribbean
accounted for 5% of all submissions received.
- In terms of the economic integration areas existing in the hemisphere,
submissions presented were distributed as follows: 47%, from the North
American Free Trade Agreement, 10% from the Andean Community, 5% from
MERCOSUR, 2% from CACM, and 1% from CARICOM. Chile and the Dominican
Republic — countries that are not members of any of the region’s
agreements — accounted for 34% and 1% of total submissions, respectively.
- The classification of the submissions, taking into account the
different sectors of civil society as described in the San José
Declaration, are as follows: 27 submissions were received from business
associations, other sectors of production and professional associations,
representing 35% of the total; six submissions came from labor
organizations, accounting for 8%; eight submissions were made by
environmental organizations (10%); 10 submissions (13%) were made by the
academic sector; and there were 26 contributions from individuals and
institutions from other sectors, accounting for 34% of the total.
- As regards the content of the submissions, a wide variety of points of
view were presented, related to issues addressed in Negotiating Groups,
Committees and Consultative Group, as well as on the general scope of
FTAA, including institutional and procedural aspects.
- Several of the 77 submissions simultaneously expressed opinions on the
topics addressed by Negotiating Groups, Committees and Consultative Group
and on the FTAA process in general. Considering the total of 77
submissions, the breakdown of opinions is as follows: Market Access was
the issue eliciting the largest number of opinions, 31, accounting for 40%
of the total; Agriculture registered 27 opinions (35%); Investment had 23
opinions (29%); Services attracted 21 opinions (27%); Subsidies,
Antidumping and Countervailing Duties had 18 opinions (23%); Competition
Policies received 16 opinions (20%); Intellectual Property attracted 15
opinions (19%); Dispute Settlement had 13 opinions (16%); Government
Procurement registered 13 opinions (16%). As regards the issues dealt with
by the Committees and Consultative Group, those of civil society attracted
the largest number of opinions, 37, (48%); the topic of Smaller Economies
registered 18 opinions (23%), and Electronic Commerce had 5 opinions (6%).
There were 38 submissions (49%) on the FTAA process as a whole and 37
opinions (48%) on other issues, such as business facilitation, labor and
the environment.
IV. ANALYSIS OF SUBMISSIONS
NEGOTIATING GROUPS
MARKET ACCESS
(Reference Documents FTAA.soc/w/91, 96, 102, 103, 107, 111, 113, 122, 125,
126, 128, 129, 130, 131, 136, 138, 141, 146, 147, 148, 155, 156, 158, 160,
162, 164, 168, 169, 170, 171 and 174)
- A wide variety of comments were received, ranging from those demanding
full and total liberalization to those arguing for special considerations
for certain sectors and for the smaller economies. There was significant
agreement on the need to define a timetable for eliminating tariff and
non-tariff barriers to trade in the Hemisphere.
In addition, harmonization and simplification of customs procedures were
considered crucial for market access.
- By way of illustration, some of the specific points of view are
described in detail below:
- Elimination or reduction of tariffs should be negotiated on a
product-by-product basis, or else a combination of methods could be used:
the formula method and the product-by-product method.
- For the small economies, elimination timetables should be asymmetric.
These economies should have sufficient time — not less than that provided
by the WTO — to implement tariff commitments. Differentiated treatment
should also be agreed for sensitive products.
- Rules of origin should be harmonized, as well as clear and transparent,
and compatible with WTO provisions, and they should made available to the
public. A common system for verification of origin should also be
implemented, containing dispute settlement mechanisms and a sanctions
regime in the event of non-compliance. The certificate of origin should be
uniform and simple.
- Countries should adopt common definitions on non-tariff barriers,
consistent with those established in the framework of international
organizations, such as WTO and UNCTAD. These non-tariff barriers should be
gradually eliminated.
- The discretionary nature and arbitrariness of technical barriers to
trade should be eliminated, and measures should be taken to prevent
technical standards from being used as hidden barriers to trade for
protectionist purposes.
- There should be an end to practices that delay or obstruct exports,
including pre-shipment inspections.
- Harmonize all standards and technical regulations or establish
mechanisms for their mutual recognition.
- Adopt fair and transparent rules, establishing safeguard mechanisms
compatible with multilateral agreements on this issue, allowing States to
protect their markets from the effects of sudden import surges.
- Harmonize and modernized customs regimes in order to simplify procedures
and eliminate bureaucratic obstacles. They should be compatible with WTO
and World Customs Organization agreements. There should be a transparent
consultation process between customs authorities and the private sector.
- The IDB should finance the hemispheric database on trade and tariffs.
- A hemisphere database on technical standards should be published.
Information should be published on the creation or possible revision of
standards, thereby giving an opportunity for the expression of public
opinion.
- Notwithstanding the orientation of the submissions, there were others
that proposed maintaining tariffs as a protection mechanism for national
industries, particularly in sensitive areas, stressing that some countries
that most advocate free access to markets are those which maintain that
most protection for others to access theirs. For that reason, they propose
making a participatory evaluation on areas and sectors to protect.
AGRICULTURE
(Reference Documents FTAA.soc/w/102, 104, 109, 111, 112, 113, 114, 117,
118, 122, 129, 130, 132, 136, 138, 139, 141, 145, 148, 155, 156, 158, 159,
168, 169, 170 and 173)
- Most submissions agreed in highlighting the need to eliminate
subsidies and practices that distort trade, and to progressively eliminate
tariffs and tariff barriers.
- By way of illustration, some of the specific points of view are
described in detail below:
- Achieve a situation in which all agricultural markets of FTAA countries
are open as part of the commitment of the agreement.
- Reduce tariff peaks at a faster rate than ad-valorem and specific duties
in general.
- A timetable for tariff reductions should be established, taking into
account the differences and sizes of markets and the relative development
of the Hemisphere’s countries.
- Completely eliminate export subsidies in the zone’s internal trade. A
priority goal of the FTAA should be to make the Hemisphere a “subsidy-free
zone”
- Establish incentives and preferences for agricultural products
originating in FTAA member countries, protecting them from unfair
competition from products subject to subsidies or domestic aid programs
from third countries. Develop mechanisms to neutralize the impact of
subsidized agricultural imports originating outside the region.
- Prevent sanitary and phytosanitary certification requirements from
becoming para-tariff barriers. These should be based on solid scientific
evidence and objective justification. Control and inspection systems for
such measures should be simplified and harmonized.
- Adopt the WTO Agreement on the Application of Sanitary and Phytosanitary
Measures, or, in any event, ensure that the FTAA’s SPS Agreement is
compatible with this.
- Agree a status-quo clause on tariff and non-tariff barriers to
agricultural trade to operate as from December 31, 1999, excluding
products for which there are already reductions commitments fixed in the
Uruguay Round Agreement on Agriculture.
- Provide greater transparency and discipline in dealing with the issue of
food aid, to prevent food sector exports originating in FTAA member
countries being displaced to third countries.
- Strengthen agricultural policies and expand credit for small and
medium-sized farming enterprises.
- Consider programs for harmonizing agricultural development policies in
FTAA countries, and establish reasonable liberalization deadlines for a
variety of agricultural products.
- Some submissions requested exemption from liberalization commitments
for the production of essential items of domestic consumption. Others
indicated the need to provide a special exemption to the agricultural
sector in all countries, to fulfill conditions of fully liberalized
markets.
INVESTMENTS
(Reference Documents FTAA.soc/w/102, 110, 111, 112, 113, 114, 117, 122,
125, 126, 127, 128, 129, 130, 134, 136, 137, 138, 148, 156, 158, 169 and
170)
- There was significant agreement on the need to incorporate the
principles of transparency and non-discrimination in the agreement adopted
on this issue, specifying that this should not translate into any type of
privilege for foreign investments and investors compared to domestic
investments and investors.
Some submissions expressed the need to establish a favorable framework for
investment in the region, in order to promote the economic development of
less developed FTAA countries.
- By way of illustration, some of the specific points of view are
described in detail below:
- Cover all types of international capital movements in agreements and
regulations on investment, including treatment of the issue of volatile
capital flows.
- Precisely define the different types of investment: direct and
financial.
- Ensure national and most favored nation treatment.
- Ensure that the expropriation of national or foreign investments is only
carried out for reasons of legitimate public interest, and that this is
preceded by full compensation in convertible currency.
- There is concern about FTAA adopting the North American Free Trade
Agreement de-regulation model; for that reason, several submissions
recommend that rules on investment should incorporate understandings on
the rights of workers and provisions favorable to the environment and
public health.
- It is recommended to publish a compendium of the rules and regulations
existing in FTAA countries on foreign investment (formal requirements,
incentives, etc.).
- A balance should be struck between the rights of governments to regulate
and the rights of enterprises.
- Encourage environmentally responsible investment. Provisions on trade
and investment should not erode environmental protection standards.
- Include mandatory provisions on workers rights in FTAA investment rules.
- Some submissions highlighted the need to establish performance
requirements for foreign investment. These proposed, among other things,
demanding a percentage of national content; giving preference to local
hiring and respecting stricter labor standards; ensuring technology
transfer; claiming reimbursement of environmental cleanup costs at the end
of the industrial activity carried out; and requiring local approval for
the exploitation of certain natural resources.
SERVICES
(Reference Documents FTAA.soc/w/102, 111, 113, 122, 124, 126, 128, 129,
130, 136, 139, 142, 154, 158, 159, 161, 162, 166, 169, 170 and 171)
- The submissions received agreed on the need to incorporate the
governing principles of WTO provisions and agreements on services in the
FTAA negotiations. Some submissions requested that services be
progressively and fully liberalized; that the agreement include national
treatment and provide most favored nation treatment immediately and
unconditionally for FTAA member countries.
- By way of illustration, some of the specific points of view are
described in detail below:
- Liberalize the services sector transparently, in a non-discriminatory,
progressive and complete manner, working with a comprehensive and
integrated approach, that incorporates protection mechanisms on issues
such as investment, market access and intellectual property. The Agreement
should envisage national treatment and provide immediate and unconditional
MFN treatment for FTAA member countries.
- The disciplines established in the framework agreement should be applied
to all service sub-sectors, as well as all modes of service delivery.
However, each country should present its own list for proposed
liberalization. This does not mean that all sectors must be liberalized
immediately.
- Include a specific annex on financial services, establishing comparable
and prudential standards for bank supervision among all countries of the
Hemisphere, based on the provisions of the Basel Convention
- Keep the issue of air traffic rights and related services outside of the
trade negotiations, pursuant to the revocation clause contained in the
GATS and the WTO.
- Improve access for developing countries to the market for technologies
related to encryption and efficient telecommunication services
infrastructure.
- Include free circulation and liberalization of engineering services, and
recognize licenses, professional titles, certifications and accreditations
awarded.
- It is impossible to liberalize trade in services without consumer
protection laws.
- Adopt measures to prevent double taxation in the services sector.
- Mechanisms should be established to facilitate the exchange of
information on regulatory aspects in each service sector. Laws, rules and
procedures affecting trade in services should be rapidly published and
made available to the public.
- The FTAA should respect any sub-regional agreements signed in the
service sector.
- Other submissions stressed that liberalization of services should be
carried out selectively, respecting the relative development levels of the
countries of the Hemisphere. In addition, some submissions argued that the
FTAA negotiation processes on services should deal with the issue of
intellectual property policies, which hinders access to new technologies,
undermining free competition in this sector. Mention was also made of the
need to redress the imbalance promoted by the GATS agreement in allowing
unrestricted movement of capital related to the provision of services,
while not providing the same treatment to the circulation of people.
SUBSIDIES, ANTIDUMPING AND COUNTERVAILING DUTIES
(Reference Documents FTAA.soc/w/102, 109, 111, 112, 114, 120, 122, 128,
129, 130, 138, 156, 158, 168, 169, 170, 172 and 174)
- To a large degree the submissions received on this issue coincided on
the need to eliminate measures that distort trade in the Hemisphere and
ensure that the regulations adopted in this area are clear and transparent
and fully compatible with the WTO.
- By way of illustration, some of the specific points of view are
described in detail below:
- Declare the Hemisphere a “Subsidy-free Zone”, as a priority goal in
establishing the FTAA.
- Establish clear and transparent provisions on antidumping, subsidies and
countervailing duties in the FTAA agreement, which guarantee uniform
interpretation.
- Create a Hemispheric information system on antidumping and subsidies
that allows coordination of public sector bodies responsible for dispute
settlement. In addition, consider mechanisms to keep the private sector
informed as to the progress of negotiations on subsidies, antidumping and
countervailing duties.
- Develop and implement programs for the exchange of experiences,
education and training, designed for both public- and private-sector
employees, aimed at facilitating preparation, research, evaluation and
decision-making processes.
- Limit the use of “best information available” that confers discretionary
powers of evaluation, in order to prevent inappropriate use thereof.
- One submission proposed establishing a mechanism to move steadily
towards eliminating countervailing or antidumping measures. This mechanism
would envisage the possibility of signing bilateral or plurilateral
agreements providing for mutual exemption from the application of such
measures, without requiring agreement by other FTAA members. This would
also make it possible to maintain existing regimes for countries that for
domestic policy reasons consider it appropriate to do so.
COMPETITION POLICY
(Reference Documents FTAA.soc/w/102, 107, 111, 113, 122, 126, 129, 130,
136, 139, 158, 159, 169, 170,172 and 174)
- Some submissions argued that the hemispheric agreement should consider
aspects relating to the interaction between trade and competition policy.
Others proposed identifying the common and basic principles of competition
for all FTAA members, in accordance with international principles and
standards. Other submissions also proposed facilitating cooperation
between FTAA countries, through effective exchange of information on the
application and execution of competition rules.
Other submissions argued that FTAA member countries should be guided by
policies that limit all types of conduct contrary to competition.
- By way of illustration, some of the specific points of view are
described in detail below:
- Develop programs and mechanisms of cooperation and technical assistance
to exchange information and experiences, in order to facilitate and
promote competition policies. The creation of a Hemispheric database
containing all information on the application and execution of competition
policies would be an effective means to that end. All FTAA countries
should pass national laws promoting competition by 2005; these should be
transparent and non-discriminatory.
- Ensure that provisions on competition policy grant effective treatment
to problems relating to the limitations imposed on trade by the countries
of the Hemisphere, particularly in relation to the issue of
cross-subsidies.
- Establish a clear and transparent legal and institutional framework for
dealing with anti-competitive trade practices. The Hemispheric Agreement
should consider the interaction between trade and competition policy,
including antidumping measures. In this context, it is essential to avoid
confusing unfair trade with laws of competition.
- Create a body responsible for examining the state-of-the-art in
competition policy systems, in order to advise and recommend measures
needed to increase the capacity of countries unable to participate in the
future Hemispheric regime.
- Prevent governments from relaxing current environmental, health, labor
or safety rules in order to obtain competitive advantages.
- Stressing the advantage that more developed economies have over the
smaller economies in adopting competition policies, many submissions
proposed studying ways to strengthen their application. One submission
argued competition policy should be based on selective criteria that
recognize the degree of development of the countries of the Hemisphere and
existing integration agreements, in order to identify economically and
socially homogeneous regions, to avoid exposing countries to a possible
exacerbation of existing asymmetries in production, technology, purchasing
power and competitiveness, among other things.
INTELLECTUAL PROPERTY RIGHTS
(Reference Documents FTAA.soc/w/102, 106, 111, 112, 117, 122, 128, 130,
136, 139, 158, 161, 169, 170 and 174)
- Most submissions on this topic stressed the need to implement
multilateral agreements and ensure their effective enforcement.
- By way of illustration, some of the specific points of view are
described in detail below:
- Incorporate in the Hemispheric agreement provisions on copyright and
related rights in connection with the new technologies
- Adopt effective measures to combat falsification and piracy, defining
basic criteria for the protection of recognized trademarks and the scope
of such rights.
- Strike a balance between protection of intellectual property rights and
the need to encourage technology transfer
- Ensure technology transfer, the regulation of abusive practices and the
protection of minor innovations, consistent with the TRIPS agreement,
recognizing that processes of structuring intellectual property protection
systems should respond to interests and objectives closely related to the
different relative development levels of the economies concerned.
- Establish programs for co-operation and exchange of experiences,
creating for this purpose a hemispheric database that would contribute to
more fluid communication between competent national agencies on this issue
and take full advantage of existing resources.
- Take the necessary steps to accede to existing multilateral agreements,
such as the Brussels Convention, the Berne Convention, the Paris
Convention, the Budapest Treaty, the Patent Cooperation Treaty, the Treaty
on Manufacturing Trademark Legislation and the Madrid Protocol..
- Adopt measures to avoid unnecessary duplication of systems for the
evaluation of patents in the region — for example, through the exchange of
databases and confirmation of patents.
- Promote cooperative mechanisms for the protection of confidentiality
between governments, consumers and enterprises, recognizing national
strategies, such as effective self-regulation, based on the best
information practices enshrined at the international level.
- Some submissions recognized the need to allow governments to limit
protection of intellectual property, in order to safeguard the health and
safety of the population.
DISPUTE SETTLEMENT
(Reference Documents FTAA.soc/w/102, 111, 114, 117, 122, 136, 137, 139,
158, 167, 169, 170 and 174)
- Submissions on this topic argued that the FTAA dispute settlement
system should be compatible with WTO rules and procedures, and ensure
clarity, consistency and transparency. Some contributions argued for the
need to ensure access and full use of the system for all States in the
Hemisphere, especially the smaller economies.
- By way of illustration, some of the specific points of view are
described in detail below:
- Ensure that decisions arising from the system, including processes of
negotiation, conciliation and mediation, are binding on all parties,
regardless of whether the dispute is between States, between private
parties, or between States and private parties.
- Institute a dispute settlement system with a structure similar to that
existing in the WTO, which is not supranational, including consultation
mechanisms, special groups and a permanent appeal body.
- Establish an instruction and training program for all parties involved
in the system, especially judges, public sector employees and lawyers, in
order to ensure better performance in applying the system.
- Take into account the importance of private sector participation in the
process and of technical assistance for the smaller economies that lacked
the capacity to make adequate use of alternative dispute settlement
systems.
- Other submissions requested the development of mechanisms for dispute
settlement between firms, and between firms and FTAA States. Other
submissions argued for participating States to adhere to the New York
Convention on Recognition and Execution of Foreign Arbitral Awards of 1958
and the Panama Inter-American Convention on International Commercial
Arbitration of 1975.
GOVERNMENT PROCUREMENT
(Reference Documents FTAA.soc/w/102, 111, 112, 113, 122, 123, 128, 136,
148, 150, 167, 169 and 170)
- Most submissions stated the importance of guaranteeing access,
non-discrimination and transparency on questions of public sector
procurement. For this purpose, they considered it relevant to guarantee
adequate and timely notification and publication of laws, policies,
regulations, practices and criteria for awarding public-sector contracts
in each country, as well as mechanisms established for dispute settlement.
- By way of illustration, some of the specific points of view are
described in detail below:
- Establish an agreement applicable to all goods and services from all
countries of the Hemisphere, the negotiation of which should be
transparent.
- Incorporate the exceptions envisaged in Article XXIII of the WTO
Agreement on Public Contracting, and ensure special and differential
treatment for developing countries, as enshrined in Article V of that
Agreement.
- Set value thresholds that balance the need to exclude small purchases
but offer opportunities for small and medium-sized firms to participate in
public tenders.
- Develop a comprehensive database covering procurement activity, which is
available to interested parties via Internet. For this purpose, each
country should establish appropriate access listing and establishing links
with electronic public-procurement sites.
- Include in the relevant provisions exemptions for environmental
preferences contained in federal, state and local laws, and give
flexibility to governments to meet their public-policy goals.
- Require national governments to safeguard the public nature of
infrastructure construction].
- One submission expressed the need to grant preferences to domestic
over foreign suppliers, as well as including criteria
relating, among other things, to national content and to services in
productive chains.
COMMITTEES AND CONSULTATIVE GROUP
CIVIL SOCIETY
(Reference Documents FTAA/soc/w/98, 107, 108, 109, 110, 111, 113, 114,
115, 116, 122, 125, 126, 127, 128, 129, 130, 131, 132, 136, 137, 138, 140,
143, 144, 148, 149, 151, 153, 154, 157, 161, 162, 165, 169, 170 and 171)
- A significant number of submissions on this issue expressed gratitude
for the opportunity to present views on the
process, and stressed the importance of the civil society participation to
reconcile national and hemispheric interests. They indicated, however,
that the mechanism established for consultation with civil society is
insufficient and ineffective, as it fails to ensure substantive exchange
of information to facilitate the presentation of proposals.
One submission argued that national consultations are the best way to
incorporate the concerns of the private sector (civil society) in trade
negotiations. Another submission suggested anti-linking the contributions
of the business sector from those of NGOs, unions and academic circles,
when evaluating the position of civil society on specific questions.
- By way of illustration, in regards to the contents of number 43, some
of the specific points of view are described in
detail below:
- A publicity campaign should be launched to inform the public about the
Agreement. The more open the legislative process, the greater public
support for the FTAA will be. Failure to inform civil society could be a
serious problem.
- Convert the current participation mechanism into an interactive forum
(with the development of non-technical summaries and the realization of
workshops and informational seminars, etc.), in order to generate feedback
processes between Ministers Responsible for Trade and civil society. In
addition, encourage FTAA countries to take steps to encourage all
interested parties to make submissions and observations, as well as
formulating national objectives and priorities.
- Establish a Consultative Committee on Civil Society.
- The contribution of women professionals and entrepreneurs should be
promoted in the sphere of civil society in the FTAA, through professional
associations and development groups.
- Some submissions stated that participation from certain segments of
civil society, could lead to the trade negotiation
processes becoming vehicles for promoting individual agendas or issues
tangentially related to trade, thus distracting the attention of the
negotiators. It is recommended, therefore, that the inter-governmental
nature of the negotiations be maintained.
- By way of illustration, in regards to the contents of number 45, some
of the specific points of view are described in detail below:
- The basic relationship between economy and trade should not become a
vehicle for promoting agendas addressing such issues as environment,
conservation, human rights, social injustice and others.
- NGOs have diverted, politicized, polarized and taken over negotiations,
turning them into vehicles for advancing the specific agendas of private
organizations that are not elected and that promote a single issue. They
do not necessarily represent the electorate or what are considered the key
economic and trade issues, and the focus of different international trade
negotiations. It seems to be setting a dangerous precedent to commit to
formalizing their participation through the formulation of administrative
standards for “civil society” or its equivalent.
- FTAA negotiations should be carried out as a government-to-government
process. During these negotiations, the position of Observer should not be
granted to any business, labor, environmental, human rights or consumer
group, and none of the aforementioned groups should be given a seat at the
negotiating table.
SMALLER ECONOMIES
(Reference communications FTAA.soc/w/96, 102, 107, 111, 113, 116, 119,
130, 135, 136, 144, 146, 162, 169, 170, 171 and 172.)
- A major number of contributions refer to the issue of Smaller
Economies and to the need to provide them opportunities to facilitate
their participation in the FTAA and allow them to take advantage of the
benefits to be derived there-from.
- By way of illustration, the following detail a number of specific
proposals:
- Define the significance and scope of “Smaller Economies” in the context
of the FTAA, in order to facilitate the formulation of rules to be applied
to them.
- Convert the Consultative Group on Smaller Economies into a Negotiating
Group.
- Adopt the principle of asymmetric reciprocity and differential execution
targets, guaranteeing special treatment in regard to market access,
acceleration of tariff elimination, and non-applicability of nontariff
barriers for products from smaller economies.
- The advantages should be focused on a real and immediate opening of
markets in favor of the smaller economies.
- Establish an institutional mechanism, duly financed, to implement a
program of technical assistance and cooperation designed to increase
capacities and disseminate information regarding dispute settlement, rules
of origin, customs procedures, technical barriers to trade, business
facilitation, and sanitary and phytosanitary measures, among others.
- Respect and expand the rights acquired through the Generalized System of
Preferences (GSP), through the application of the “enabling clause.”
- Ensure the transfer of knowledge and technology, particularly that which
derives from the region’s financial organizations, in order to better
absorb the impact of market liberalization.
- Implement a Hemispheric information system allowing enterprises of
smaller economies or small enterprises of relatively more highly-developed
economies to avail themselves of business opportunities and for placing
goods and services within the expanded market.
- Immediately and unconditionally forgive all bilateral or highly
burdensome debt for the heavily indebted poor countries (HIPC).
- However, two contributions indicated that while recognizing the
asymmetries between countries, asymmetries within countries should also be
recognized and should receive the same attention and analysis as do the
smaller economies of the hemisphere.
ELECTRONIC COMMERCE
(Reference Documents FTAA.soc/w/136,163,167,169 and 170)
- Submissions on this issue contained a variety of not necessarily
concurrent opinions, which do not lend themselves to generalization.
- By way of illustration, some of the specific points of view are
described in detail below
- The FTAA should act in accordance with the declaration of principles
formulated on this issue in the WTO.
- Policies and mechanisms for cooperation and exchange of experiences
should be promoted, in order to prevent and punish fraud in electronic
commerce transactions, as well as compensate for the damage caused
thereby, and recover losses through the application of specific laws on
this issue.
- More widespread use of electronic mail should be promoted, as a way of
slowing down the depletion of natural resources, specifically
indiscriminate felling of trees.
FTAA PROCESS
(Reference Documents FTAA/soc/w/92, 98, 103, 107, 108, 109, 111, 112, 113,
114, 115, 116, 118, 122, 125, 126, 127, 128, 129, 130, 137, 138, 141, 143,
144, 146, 149, 153, 158, 161, 165, 167, 169, 170, 171, 172, 173 and 174)
- A large number of submissions strongly supported the establishment of
a Free Trade Area of the Americas (FTAA),
which would allow market opening and free trade and investment.
Submissions generally supported the main objectives of this exercise,
namely to negotiate an agreement which is balanced, integrated, WTO
consistent, and fully applied in all contracting parties; and to complete
the negotiations for that agreement by no later than 2005.
A significant number of communications reflect the need for greater
transparency in the FTAA. Some of these proposed gradual integration
towards full economic union, as well as additional liberalization going
beyond existing free trade agreements.
- The following ideas are suggested in this regard:
- Carry out a wide-ranging dissemination campaign on the FTAA process on
the issues it addresses, its implications and scope, to contribute to a
better understanding of the process.
- Conclude negotiations no later than December 31, 2003, thereby allowing
the Agreement to come into force on January 1, 2005.
- Establish a permanent institutional structure for the FTAA and set up
mechanisms for financing it.
- Incorporate an “accession” and “non-applicability” clause in the
process.
- Achieve consistency between the FTAA process and other regional and
multilateral trade agreements.
- Ensure that FTAA provisions are governed by traditional values of
constitutional federalism.
- Support the agreement of participating governments to conclude the
negotiations by 2005 at the latest, insisting that concrete steps be take
toward the execution of this objective.
- Ensure the transparency of the process through equitable and timely
access to information relating to it, including draft texts and
negotiating documents.
- One submission argued, on the contrary, that the FTAA process should
be recognized as essentially an economic and
commercial legislation forum between the governments of Hemisphere.
BUSINESS FACILITATION
(Reference documents FTAA/soc/w/122, 129, 169)
- A number of contributions related to business facilitation seek to
adopt the proposals in this area presented by business forums throughout
the Americas. Other contributions express congratulations for the recent
decision of the Trade Negotiating Committee (TNC) to disseminate, on the
FTAA website, the customs-related business facilitation measures approved
at the Toronto Ministerial Meeting in November 1999. Some contributions
state that the successful application of previously agreed measures will
constitute fundamental proof regarding the efficacy of the FTAA Agreement,
and they thus fully support the implementation of the eight customs
measures that were approved.
OTHER ISSUES
ENVIRONMENT
(Reference Documents FTAA/soc/w/92, 102, 104, 108, 109, 110, 111, 114,
117, 118, 122, 123, 125, 128, 130, 133, 137, 138, 144, 145, 148, 156, 164,
165 and 169)
- An important number of contributions on this issue indicate the need
to incorporate, in the FTAA deliberations, an analysis of the impact that
trade integration and liberalization processes will have on the
environment and on natural resources, so as to ensure appropriate levels
of protection and conservation thereof, as well as complementarities
between trade and environmental policies.
- By way of illustration, some of the specific points of view are
described in detail below, in relation to the concepts included in the
previous paragraph:
- The FTAA should explicitly consider environmental issues, but only
through a separate and parallel agreement on the environment. The
challenge is to promote trade while combining profitability with long-term
economic and environmental sustainability. Moreover, while environmental
regulations should remain the competency of each country, a multilateral
agreement on environment should establish a set of minimum rules on this
issue.
- Negotiations as currently set up, which do not address environmental
protection, will result in a an agreement that will undermine the
environment and restrict the ability of governments to legislate in favor
of environmental protection.
- Institute an environmental forum, parallel to the trade negotiating
forum, responsible for reaching a hemispheric environmental agreement that
respects national sovereignty, establishes a detailed, open and
transparent environmental management system and promotes the
implementation of cooperation mechanisms in place of trade sanctions.
- Establish a commission on environmental cooperation and health of the
populations of the Americas in the FTAA.
- Eliminate production and trade subsidies that caused environmental harm.
- Some of the submissions by civil society expressed disagreement on the
need to incorporate environmental measures in trade agreements, arguing
that in most cases such measures constitute disguised barriers to trade
and that their application damages the interests and competitiveness of
Latin American economies. They recognize, however, the need to devise
mechanisms to achieve cooperation and reconciliation of interests on
environmental issues.
- By way of illustration, some of the specific points of view are
described in detail below, in relation to the concepts included in the
previous paragraph:
- Environmental problems per-se do not stem from trade, but originate from
modes of production and consumption in the economies concerned. It was
necessary to recognize the principles of sustainable trade established by
the United Nations, which stress that consumer and producer responsibility
form an integral part of environmental protection
- It is imperative that FTAA trade negotiations be limited to objectives
related to international trade policies. since the WTO has a special
working group with a clear mandate to analyze the effects of trade and the
environment.
- Moreover, nearly all economists agree that free trade raises wage
levels, which in turn translates into better labor and environmental
standards.
- Too often, intentions to link trade mechanisms with environmental
standards represent another face of protectionism. It is therefore
necessary to prevent or eliminate the use of environmental standards or
measures imposed unilaterally, as well as trade sanctions based thereon.
LABOR
(Reference Documents FTAA/soc/w/111, 116, 122, 124, 125, 126, 127, 128 and
165)
- Various submissions, which express opinions on the labor issue, agree
on the need to safeguard the rights and interests of workers in the
Hemisphere, in accordance with the principles and fundamental rights of
workers, established by the international Labor organization (ILO).
- By way of illustration, some of the specific points of view are
described in detail below
- Extend the Presidential mandates to the Labor Ministers of the Second
Summit of the Americas, held in Santiago, Chile, to constitute a labor
negotiation forum parallel to that of trade, responsible for implementing
not only the commitments defined in Santiago, but also a plan of action
designed to: incorporate the business sector in the search for viable
alternatives to ensure compliance with labor standards, provide technical
assistance, implement transparency measures, and execute policies to
stimulate labor markets.
- The basic labor standards recognized internationally should be included
in the fundamental provisions of FTAA and not be limited to parallel
agreements. The FTAA should “substantively recognize the special needs of
workers”.
- FTAA provisions should guarantee that members do not obtain unfair
competitive advantage deriving from minimum wages; child labor, prison
labor -- virtually slave labor; all the absence of social security systems
for workers. FTAA members should not lower wages in order to maintain
competitiveness.
- Prevent the erosion of labor rights and standards, in order to attract
investments. Some submissions argue that investment regimes should include
provisions relating to local communities and the rights of workers as
stipulated in the ILO declarations.
- Initiate negotiation of a hemispheric labor agreement in with a view to
expanding coverage of internationally recognized labor standards. It is
proposed to create a negotiating group on worker migration (skilled and
unskilled) within a global strategy aimed at creating a free trade area.
- Promote the adoption of standards aimed at protecting the rights of the
most vulnerable groups (women, children and workers in the informal
sector) and create support networks between them in the Hemisphere. These
provisions should cover the rights of migrant workers, both skilled and
unskilled.
- Some civil society contributions disagree with the need to establish
labor standards in trade agreements, arguing that in
most cases such measures constitute disguised barriers to trade, and that
their application harms the interests and the competitiveness of Latin
American economies. Nonetheless, they do recognize the importance of
establishing mechanisms for cooperation and coordination of interests in
this area, respecting the authority of multilateral fora established for
that purpose.
- By way of illustration, some of the specific points of view are
described in detail below, in relation to the concepts included in the
previous paragraph:
- Trade liberalization intrinsically benefits workers and the environment,
so the use of labor measures or standards imposed unilaterally, with
protectionist aims or as hidden trade barriers, as well as trade sanctions
based thereon, should be avoided.
- The FTAA would promote economic growth and higher wages throughout the
hemisphere.
- The WTO Ministerial Declaration of Singapore and the Belo Horizonte
Declaration established the labor issue as being within the remit of
International Labor Organization, and that both organizations (WTO and
ILO) would seek points of contact; therefore, the issue of labor and trade
should not be included in any FTAA negotiating group. Moreover, the ILO is
a more appropriate forum than the WTO for deliberating on trade-labor
issues. The former has recently strengthened its initiatives to ensure
compliance with standards and, more importantly, has created a broad
international consensus on five fundamental internationally recognized
labor standards.
- A system of trade sanctions with respect to labor standards is
incorrect, and would be one-sided between countries: only developed
countries would be able to apply sanctions effectively against developing
countries — not the reverse
Annex A: Working Plan
Annex B: Public Invitation
Annex C: List of Contributions
Annex D: Executive Summaries
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