Public
FTAA.soc/w/172/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 OF FTAA ISSUES
UNIVERSITY OF MEDELLIN

The University of Medellin joins the effort to promote the participation of civil society in decisions surrounding the deliberations on the Free Trade Area of the Americas (FTAA), a matter of considerable importance for fostering democratic decision making in the political and economic realms.

The political and economic developments associated with globalization require a reorganization of the strategies undertaken by the nations and a change in the philosophy of their institutions as they seek to tap the opportunities afforded by these changes, such as the democratization of decision making and the development of market economies with a view to increasing efficiency and the well-being of the inhabitants of the hemisphere.

In this context, the measures that promote economic well-being on the basis of consumption are of vital importance because of the differences in the development not only of production but also of consumer habits of the different nations of the Americas, and even among sectors of a given region.

Consequently, we consider that any set of measures adopted for integrating markets should be applied selectively. This does not mean privileging the inefficiency of those that, not being submitted to the same competitive pressures, seek additional benefits, nor losing sight of the objective of a market based on the principles of transparency resulting from free competition and democratic decision making.

Globalization has wrought very profound changes throughout the hemisphere, including trade liberalization, modernization of the economies and institutional reforms within the framework of market economies and democracy. This has facilitated the countries’ participation on a more global plane in accordance with the needs of the region.

The development of subregional agreements has stimulated competition that, in turn has contributed to upgrading competitiveness because of the diversity of production and better prices and quality, although this is still in the early stages. For this reason, competition measures should be selective and take into account the degree of development of the countries making up the free trade area. It should begin with the established groups, and advance on a solid basis that makes it possible to identify regions that are similar from the social and economic points of view.

Thus, it is proposed that a selective general framework be used where integration begins between economic regions, with a regulatory and practical plan for competition in place and well developed within each, before the countries, especially the less developed countries, are exposed to a pressure characterized by glaring technological, production, purchasing power and, of course, competition differences. This could result in disadvantages that could threaten the stability of each of the nations and the evolution of integration in the Americas.

Accordingly, the following submission contains thoughts on the topics of competition policy, and subsidies, antidumping and countervailing duties, and represents the position of the School of Industrial Economy at the University of Medellin.