*EPF506 11/01/2002
U.S. to Seek Launch of Trade Capacity-Building Program at FTAA Meeting
(Program would help small and developing countries benefit from trade) (0)

By Scott Miller
Washington File Staff Writer

Quito -- The United States will seek agreement to launch a program at the November 1 Free Trade Area of the Americas (FTAA) ministerial in Quito that increases the ability of the hemisphere's smaller and less developed countries to benefit from trade, says U.S. Trade Representative Robert Zoellick.

At the first Summit of the Americas in 1994, the presidents of the Western Hemisphere's 34 democratic nations agreed to pursue the establishment of a Free Trade Area of the Americas. And on November 1, the trade ministers from these democratically-governed nations will meet in Quito, Ecuador, to continue their efforts to create a hemispheric free-trade zone by the target date of 2005.

At an October 31 press conference in Quito, Zoellick indicated that he hoped to reach an agreement with his hemispheric counterparts at the FTAA ministerial to incorporate a regional trade capacity-building program within their ongoing negotiations.

Zoellick said that the Hemispheric Cooperation Program (HCP) would build the capacity of the region's smaller and less developed countries to take part in the FTAA negotiations. The program would also help these nations to comply with their trade commitments and fully benefit from hemispheric free trade.

The U.S. trade representative announced that President Bush will seek $140 million to contribute to the HCP effort in 2003. He noted that this would be an increase of approximately $40 million above the amount the United States spent on technical assistance for trade capacity-building in the hemisphere in 2002, and more than double the $61 million the United States spent on these efforts in 2001.

Explaining the increased U.S. funding for trade capacity-building in the hemisphere, Zoellick said: "We felt that this additional contribution, to go with the capacity-building effort, was important because there are countries in the Caribbean and Central America and other regions that are making a very serious effort to move forward with [FTAA] trade negotiations and we know that they need help."

Under the auspices of the HCP, countries seeking assistance would work with the U.S. Agency for International Development and the Inter-American Development Bank to identify needs and develop a "national action plan" to meet those needs.

Technical assistance under the HCP could include training for government officials on issues such as customs facilitation and intellectual property rights protection. Experts from the United States or one of its FTAA partners could provide this training.

Programs that identify ways to make trade agencies more effective and transparent, and that assist governments with regulatory reform and identify opportunities for small and medium-sized businesses, could also be part of the HCP.

Zoellick indicated that the HCP would also include social programs such as funding to support entrepreneurial ventures by women in the workforce.

He said that the United States also wants to include the private sector in the trade capacity-building program whenever possible. As a USTR fact sheet on the HCP stated, "active participation by the private sector and foundations would bring additional resources and creativity to the HCP." One example of private-sector engagement envisioned by the USTR would be roundtable sessions that would bring together public and private donors to identify the best possible programs to meet each country's individual needs.

The U.S. trade representative said that the HCP is "novel" and a "breakthrough concept in trade negotiations" because it aims to provide trade capacity-building assistance as a component of the FTAA negotiations, which was not an objective outlined at the conclusion of an agreement. Zoellick added that he hopes the HCP can become a model for other trade negotiations, such as World Trade Organization talks. "Frankly, with the help of the IDB, the United States and, I hope some of the others like Canada, we can do something that could become a model for trade negotiations elsewhere," he said.

Zoellick concluded his remarks by reiterating the necessity of building the capacity of the hemisphere's smaller and less developed economies to benefit from free trade. "The reason why this is so important to us is that we always have to keep in mind that our goal is not just doing agreements, nor even just expanding trade, but the purpose of all these agreements is to try to add economic growth, to create jobs, to create hope and opportunity," he declared.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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