FTAA could be "anorexic" at first say experts

Thursday, November 13, 2003

MIAMI, USA (AFP): Trade ministers of the Americas seeking to create the world's largest free-trade area may see an "anorexic" version of their grand plan implemented at first, experts say.

Trade ministers from every country in the Americas -- except for communist Cuba -- will meet in Miami in mid-November to work on the Free Trade Area of the Americas (FTAA) agreement.

But with just 14 months to go, few expect all countries to meet the January 2005 deadline to complete negotiations.

The draft agreement currently has some 5,000 issues that still need to be resolved, said Eduardo Gamarra, director of the Latin American and Caribbean Center at Florida International University in Miami.

The United States and Brazil - the two hemispheric giants that are currently co-chairing the final stage of the talks - strongly disagree over agricultural subsidies, investment rules, pharmaceuticals and intellectual property, among other issues.

But other countries more dependent on US markets may be more willing to compromise, experts said.

The ministerial talks in Miami, set to culminate on November 20 and 21, seemed to be heading to an impasse until US and Brazilian officials smoothed over differences at a November 8-9 mini-summit held outside of Washington.

The 2005 deadline however may still be missed for a different reason: 2004, when many of the most controversial details will be addressed, is also a presidential and congressional election year in the United States - and US trade officials are likely to feel strong political restraints.

"In any negotiation the most controversial issues are left to the end," added Carl Cira, director of the Summit of the Americas Center, also at Florida International University.

If the 2005 deadline is still met that may mean "an FTAA without the full participation of all 34 countries," said Gamarra, which he described as "an anorexic or light" trade agreement.

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