Public
FTAA.soc/w/152/Add.1
October 24, 2000

Original: Spanish
Translation: FTAA Secretariat

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

CONTRIBUTION IN RESPONSE TO THE OPEN INVITATION

SUMMARY COMMENTS ON THE PUBLIC INVITATION TO CIVIL SOCIETY
 IN THE COUNTRIES PARTICIPATING IN THE FTAA

It is important for Universidad Colegio Mayor de Nuestra Señora del Rosario and, specifically for the Faculty of Advanced Administration and Business Studies, to have been included in the public invitation to civil society in the countries participating in the FTAA. We consider that all actors in an economy and in a nation must be involved in and committed to the design and definition of the new forms of political and economic relations with the milieu around us..

The world has become deeply involved in two issues: Globalization and International Competitiveness. This brings us face to face with a new philosophy regarding countries, their sovereignty, their internal jurisdiction and their borders. Some speak of the “global village,” a phrase that reflects a new way of looking at life, work, production within national companies, and the definition of the markets that can be served and to which the products and/or services offered by domestic economies –which have absolute as well as comparative and competitive advantages-- can be offered.

The complete document speaks of the importance of creating economic blocs, building up associations of countries around them. Although well aware that the FTAA is still in the process of developing the idea, we feel it is extremely important to make the following points to help enrich the development of the group.

A country’s external sector involves not only its trade relations with other economies, but also its participation in setting up economic and blocs and groups, FTAA in this specific case. This association offers advantages for negotiation processes. The advantages begin with the agreement to eliminate customs and tariff barriers hindering commercial and trade operations among the signatory countries.

The Ministerial Declarations of San José and Toronto clearly state, when defining the goals, the wish to promote and foster trade among the countries, improve the standards of living of their inhabitants, and to protect the environment.. What is not clearly stated in these documents is how these goals are to be attained. Neither is made clear how each country is to incorporate the changes needed to launch a process of association aimed at creating a free trade area in the definition of its domestic economic, commercial, exchange and fiscal policies.

The Latin American countries, most of which have developing economies, are not sufficiently stable from the standpoint of economic and political conditions to abide by supranational rules aimed at fostering trade activities and transborder movement of goods, services, capital and people.

As proof of this statement, witness the stand taken by the Venezuelan government on the issue of transshipment of merchandise carried by Colombian trucks. Objections placed before the bodies governing foreign trade by the Colombian Ministry of Foreign Trade, and their ruling in our favor, have been ignored by our neighbor (a country that ranks second in importance for Colombian foreign trade). According to calculations by government institutions in Colombia, it is estimated that this situation has caused a reduction of close to 30% in the flow of trade, as reflected in a drop in the trade and balance of trade indicators.


The reason for mentioning the above is to point out that good intentions are not enough. They must go hand in hand with instruments that are mandatory for the parties, as what is good for or in the best interest of one party cannot be allowed to prevail over agreements and principles that have been generally accepted by the parties.

Furthermore, it is extremely important to involve the major commercial actors, i.e. the businessmen and individuals who transform products or services with their industry, not just the governments of the countries in defining the internationalization processes, as they are the ones to actually engage in trade within the framework defining the supranational principles and laws set by the group.

With this brief comment we wish to state that we appreciate the opportunity to voice our opinion on this current issue of great importance and far-reaching consequences for the country’s economic and commercial structure. Furthermore, we must also point out how important it is to involve all those who are part of the country’s economic and industrial structure as it is they who will, directly with their activities, make the free-trade area a reality.