Leaders set date to start W. Hemisphere trade talks

Chilean President Eduardo Frei holds the summit communique

April 19, 1998
Web posted at: 8:34 p.m. EDT (0034 GMT)

SANTIAGO, Chile (CNN) -- Despite political and economic obstacles, leaders of 34 Western Hemisphere nations Sunday forged ahead with plans to create a giant open market that would link nearly 800 million people and economies totaling $10 trillion.

The leaders, wrapping up the second Summit of the Americas, agreed that negotiations for the Free Trade Area of the Americas should begin in September in Miami. The trade zone would stretch from Alaska to Cape Horn.

"We are confident the Free Trade Area of the Americas will improve the well-being of all our people, including economically disadvantaged populations within our respective countries," a joint statement from the leaders said.

Clinton

Virtually all tariffs and duties would be eliminated under the proposed zone. But obstacles remain, mainly U.S. President Bill Clinton's failure to win fast-track negotiating powers from Congress and worries in Latin America after the Asian economic crisis led to tightened export and credit markets.

Canadian Prime Minister Jean Chretien, who will host the next summit, probably in 2000, said economic integration is already a reality.

"My colleagues, let us tell our people, let us tell the world, loud and clear, once and for all, as we turn the page to a new century, that the era of building walls is over," he said.

Communist Cuba, the only country not invited to the Summit of the Americas, also was a point of contention.

"There is a country that is missing," said Brazilian President Fernando Henrique Cardoso. "They have a social commitment. They are very much concerned with education and with health care. Why should we not make steps toward democracy there?"

Leaders of the Americas backed the U.S. position on the need for democracy in Cuba but spoke out against the 36-year U.S. trade embargo and the Helms-Burton law aimed at restricting international investment on the island.

Chretien said he wants Cuba to attend the next summit and announced he will go to Cuba on April 27 to meet Cuban leader Fidel Castro and press for change.

The leaders also created a list of items that need action, including education, environmental protection, illegal drugs, poverty and year 2000 computer problems.

In the fight against illegal drugs, the leaders agreed to a multilateral effort, mandating a commission overseen by the Organization of American States (OAS) to evaluate each nation's anti-drug efforts.

Anti-poverty efforts are centered on a three-year, $6 billion program of World Bank and Inter-American Development Bank loans focusing on expanding education. Primary education would be expanded to all children in the region and secondary education to 75 percent by 2010.

The leaders pledged to eradicate measles by the year 2000 and to make it easier for poor people, especially women, to start small businesses and own property.

"Overcoming poverty continues to be the greatest challenge confronted by our hemisphere. We are conscious that the positive growth shown in the Americans in past years has yet to resolve the problems of inequity and social exclusion," the leaders' final statement said.

The summit ended Sunday

Negotiations on the free-trade zone will focus on nine areas: market access, investment, services, government procurement, dispute settlement, agriculture, intellectual property, subsidies and "dumping," which is the practice of selling products at below-market prices to win market share.

Also endorsed was a special OAS monitor for freedom of expression. Since 1994, 200 journalists have been killed for reporting on issues such as corruption and drugs.

"There are permanent campaigns organized and financed by the intelligence services that use the tabloid press to slander and attack journalists and put them in danger," said Peruvian journalist Cecilia Venenzuela.

A trade negotiating committee will meet in Miami on June 30 and talks must start by September 30. They will move to Panama and then to Mexico.

Canada will oversee negotiations at the start, followed by Argentina, then Equador. Brazil and the United States will jointly oversee the final stages.

White House Correspondent John King, Havana Bureau Chief Lucia Newman, The Associated Press and Reuters contributed to this report.

Related story:

• Free trade is focus as Americas summit opens - April 18, 1998

Related sites:

Note: Pages will open in a new browser window

• Free Trade Area for the Americas
• Organization of American States
• Inter-American Development Bank Home Page
• The World Bank Group

External sites are not endorsed by CNN Interactive.

---

 

---

Sound off on our message boards & chat

© 1998 Cable News Network, Inc.
A Time Warner Company
All Rights Reserved.

Terms under which this service is provided to you.
Read our privacy guidelines.