Public
FTAA.soc/w/105
September 27, 2000

Original: English

FTAA - COMMITTEE OF GOVERNMENT REPRESENTATIVES ON THE PARTICIPATION OF
CIVIL SOCIETY

CONTRIBUTION IN RESPONSE TO THE OPEN INVITATION

Recommendation: FTAA Participants consider two different approaches to the funding of the permanent FTAA institution and agree that the WTO model represents the most effective and efficient approach.

Explanation: When completed, the product of the FTAA negotiations will require some sort of a permanent institutional structure. To date, countries have relied upon an ad hoc structure whose financing is dependent upon a multitude of sources, principally the Tripartite Committee. A more secure and permanent arrangement will have to be incorporated in the institutional and architectural aspects of the final agreement. The United Nations approach apportions costs based on the economic size of the Member State. Calculating for the Western Hemisphere only, the following would represent each FTAA Participating countries GDP as a percentage of the Western Hemisphere total. A nominal “national quota” is also calculated for each $ one million budgeted for the FTAA institution. The exercise is then repeated, applying the GATT/WTO formula where a Member’s total value of trade becomes the operative principle. In this exercise, total trade is within the Western Hemisphere and provides a broad balance among the countries with respect to the discharge of their responsibility to fund the FTAA institution.