*EPF106 04/28/2003
Text: Sec. Powell Says U.S. Aims to Boost Trade, Democracy in the Americas
(Cites importance of regional partnerships to build prosperity) (3430)

President Bush's foreign-policy agenda aims to support "people's desire for human dignity and well-being" through "cooperation with our friends and allies, not only to meet the security threats we face, but also to boost trade, conquer infectious disease, and strengthen democracy," says Secretary of State Colin Powell.

Addressing the Council of the Americas conference at the State Department on April 28, Powell emphasized that the president's agenda "is directly relevant to our hemisphere," as demonstrated by collaborative efforts between the United States and neighboring countries on a number of issues. For example, "none of our goals is more important than the war against terrorism," he said. Powell recalled that since the September 11, 2001, terrorist attacks against the United States, the democratic nations of the Western Hemisphere have worked together "to search out terrorists, dismantle their networks, and freeze their funds."

Similarly, "we must continue to cooperate with equal vigor to meet the many other challenges confronting our hemisphere -- from the danger to Colombia from terrorists and narco-traffickers, to the peril to Venezuela from political upheaval," he noted. "We must do a better job of reducing the threat to our citizens from trafficking in drugs, arms, and people. We have an opportunity to come together and defeat HIV/AIDS, the greatest weapon of mass destruction on the face of the earth today."

In order to balance security needs with the interests of business and commerce, U.S. officials and their regional counterparts must "work together on borders and immigration to make sure we welcome legitimate travelers while screening out terrorists and criminals," Powell said.

The secretary described trade as "a powerful engine for development" in the hemisphere, pointing to the success of the North American Free Trade Agreement (NAFTA) in attracting more jobs and investment in the signatory countries of Mexico, Canada and the United States. Powell said that the Bush Administration is "working toward freer trade at every level," citing U.S. efforts to strengthen economic relationships with countries throughout the hemisphere.

"Bilaterally, we have concluded a free-trade agreement with Chile that will remove the disadvantages American countries currently face, while helping Chile continue its remarkable record of growth and development," he said. "We have implemented an expanded trade program with the Andean nations that provides duty-free access to the U.S. market for some 5,600 goods." He explained that the United States is also "working with the Central American nations to finish free-trade talks with them by the end of the year."

The most ambitious project, however, is the proposed Free Trade Area of the Americas (FTAA), which would establish a free-trade zone linking all the democratic nations of the Western Hemisphere. "Two years ago, at the Quebec Summit of the Americas, our presidents and prime ministers committed themselves to creating, by January 2005, a free-trade area that would create greater prosperity for nearly 800 million people in 34 countries," Powell said. He indicated that the Bush Administration "places a high priority" on completing ongoing FTAA negotiations.

However, steady progress within the region requires a democratic framework that ensures government accountability, the secretary warned. "We can combat terrorism and trafficking. We can fight disease. We can strengthen human ties. We can expand trade," he said. "But none of our efforts will be enough if men and women lack confidence in their democracies and their prospects for a better future."

Because many disadvantaged people in the hemisphere are still waiting to see an improvement in their standard of living, there is "a lingering dissatisfaction with the quality of democracy and the results of economic reform," Powell observed. "Despite some progress over the past year, dissatisfaction remains."

Expectations for improved living standards are, in part, "a measure of how far our hemisphere has come, politically and economically," Powell said. In the 1980s, "much of the hemisphere was ruled by generals and dictators," yet now, "every country but one has a freely elected president or prime minister," he added.

That one exception is Cuba, "where the Castro regime is cracking down on Cuban citizens who dare ask for a voice in how they are governed," the secretary said. He criticized the government of Cuban dictator Fidel Castro for "turning to arrests and harsh prison sentences in a vain effort to stamp out the Cuban people's thirst for democracy."

Elsewhere, "political progress in the region has gone hand-in-hand with economic reforms," Powell said. While noting that "these improvements have created increased expectations for good government and broader prosperity," he cautioned that "too many people still suffer from weak governments and ineffective institutions." In some places, rule of law and property rights are in jeopardy, Powell argued. Moreover, "children are not adequately educated for jobs in a globalizing world or citizenship in a democracy," he said. "Health-care systems are failing. Corruption still saps the marrow of democracy and, like terrorism, it is all too widespread. Economic stagnation and even deep recession retard development."

For the hemisphere to flourish, regional governments "must meet their peoples' just expectations for a better future," the secretary declared. "To do so, they must see political, institutional, and economic reforms through to completion." Those governments will need support from friendly countries and also from the business community, Powell suggested.

"The challenges that our hemisphere confronts, and the solutions, are inextricably intertwined," he said. "Political stability and security require and reinforce economic growth. Good government is essential to all."

Finally, "hemispheric progress requires continued American engagement," Powell concluded. "In trade, in security, in support for democracy, and across the board, we are deeply involved in expanding peace, prosperity, and freedom in this hemisphere. These are essential elements of the president's foreign-policy agenda, and that will not change."

Following is the text of Powell's remarks, as prepared for delivery:

(begin text)

Remarks by Secretary of State Colin L. Powell
to the 33rd Washington Conference
of the Council of the Americas
April 28, 2003

Thank you, David, for that warm introduction. And thank you for all of your efforts, throughout the course of your distinguished career in business and philanthropy, to increase understanding among the peoples who call our hemisphere home.

Bill Rhodes, Myles Frechette, I am delighted to see you again. Thank you for all you have done over the years to bring our region together.

I'd also like to recognize two members of my State Department team. Curt Struble has done a wonderful job as Acting Assistant Secretary for Western Hemisphere Affairs. Roger Noriega, our talented ambassador to the OAS, has been nominated by President Bush to be the new Assistant Secretary. I'm looking forward to Roger being confirmed and coming on board.

Your excellencies, distinguished guests, ladies and gentlemen. Welcome to the State Department.

I'm always pleased to meet with the Council of the Americas. You embody values we all hold dear -- free markets, democracy, and the rule of law. By trading and investing, you create jobs, expand opportunity, and promote development for the people of our hemisphere.

I'm sure you would agree that we meet today in a time of peril and promise. In Iraq, the brave young men and women of the American, British, Australian, and other coalition forces have liberated the Iraqi people from the yoke of Saddam Hussein and his thugs. I am so proud of them, and I know you are proud of them, too.

Who among us will ever forget the scene of unbridled joy when, together, Iraqis and Americans toppled the overweening statue of Saddam Hussein which dominated Baghdad's central square? Who will ever forget the photographs of tens of thousands of Iraqi Shiites marching in a pilgrimage to their holy city of Karbala for the first time in a quarter-century? Truly, a new day has dawned in Iraq.

Baghdad may seem far from Bogota, and the cares of Iraqis far removed from the daily struggles of Argentines. But the countries of our hemisphere have had and continue to have an important role to play in eliminating the threat from Iraq's weapons of mass destruction and bringing new hope to the Iraqi people.

Seven of our Latin American friends are members of the coalition of the willing that President Bush assembled to free Iraq. I want to thank President Maduro of Honduras, who is here at this conference, as well as the presidents of Colombia, Costa Rica, the Dominican Republic, El Salvador, Nicaragua, and Panama for their courageous stand for what is right, what is necessary, and what is just.

Now we are counting on the Latin American members of the United Nations Security Council to join us in making sure the Council can fulfill its vital role in the reconstruction of Iraq.

Security Council membership brings important responsibilities and requires tough decisions. Frankly, we were disappointed when our regional friends on the Security Council did not support a follow-on to Security Council Resolution 1441, which gave the Iraqi regime one last chance to disarm peacefully.

But now that Saddam and his regime are gone, and his statues lie in the dust, we must come together to make sure that the Security Council lives up to its responsibilities to help the Iraqi people to a better life and a more hopeful future.

Iraq is very important, but President Bush has a foreign policy agenda that goes well beyond the military crisis of the moment. Last fall, the president issued a document called "The National Security Strategy of the United States of America," which lays out his agenda for all to see.

Many people think our new strategy is a strategy of pre-emption. Nothing could be further from the truth. Pre-emption is only a couple of sentences in a document that speaks to the aspirations of people in America and around the world -- and the role we intend to play to meet those aspirations.

The president's agenda is founded on support for people's desire for human dignity and well-being. It pledges cooperation with our friends and allies, not only to meet the security threats we face, but also to boost trade, conquer infectious disease, and strengthen democracy. This is an agenda that is directly relevant to our hemisphere.

None of our goals is more important than the war against terrorism. Barely a year and a half after the attacks of September 11, the world is still at war with terrorists -- in Iraq, in Afghanistan, and everywhere they plot their crimes. There can be no respite, no rest until the terrorists are defeated. And they will be defeated.

From day one to this day, the nations of our hemisphere have stood together against terrorists. On 9/11, my colleagues in the Organization of American States were the first to condemn the attacks on the Pentagon and World Trade Center. Since then, in word and in deed, the democratic countries of the region have cooperated to search out terrorists, dismantle their networks, and freeze their funds.

We must continue to cooperate with equal vigor to meet the many other challenges confronting our hemisphere -- from the danger to Colombia from terrorists and narco-traffickers, to the peril to Venezuela from political upheaval. We must do a better job of reducing the threat to our citizens from trafficking in drugs, arms, and people. We have an opportunity to come together and defeat HIV/AIDS, the greatest weapon of mass destruction on the face of the earth today.

Our human ties are our most precious bonds. Over 33 million Americans proudly trace their descent from the nations of Latin America. Our challenge is to work together on borders and immigration to make sure we welcome legitimate travelers while screening out terrorists and criminals. We must remain an open, welcoming nation.

History has taught us that no country, not even a superpower, can meet challenges such as these alone. Solutions must be hemispheric solutions.

So too with opportunities. The spread of democratic and economic freedoms has opened unprecedented opportunities to lift millions of men, women, and children out of misery.

Trade is a powerful engine for development, and neighbors are natural trading partners. The North American Free Trade Agreement shows how freeing trade across borders helps people. In less than a decade, trade among the NAFTA partners has more than doubled, bringing more and better jobs. In Mexico, the export sector has created over half of all new manufacturing jobs -- and these are jobs that pay, on average, 40 percent more.

To expand the circle of prosperity, we are working toward freer trade at every level. Bilaterally, we have concluded a free-trade agreement with Chile that will remove the disadvantages American companies currently face, while helping Chile continue its remarkable record of growth and development.

We also support strengthening economic relations with groups of countries in our hemisphere. We have implemented an expanded trade program with the Andean nations that provides duty-free access to the U.S. market for some 5,600 goods. In addition to stimulating trade and development, this program provides incentives to Andean farmers to find alternatives to illicit crops.

We are working with the Central American nations to finish free-trade talks with them by the end of the year.

At the same time, we have launched programs to help the Central American countries compete in the modern global economy. The 50 projects include funds for computers to make government agencies more efficient, projects to help increase citizen involvement in trade negotiations, and assistance to strengthen food-safety inspection systems.

This may all sound mundane, but these are the down-to-earth, everyday details that can determine whether a country can attract the capital and investment it needs to grow.

At the regional level, we place a high priority on linking our entire hemisphere in a Free Trade Area of the Americas. Two years ago, at the Quebec Summit of the Americas, our presidents and prime ministers committed themselves to creating, by January 2005, a free-trade area that would create greater prosperity for nearly 800 million people in 34 countries. To move negotiations forward, the United States has announced a bold, comprehensive offer to eliminate tariffs and trade barriers.

All of this activity is taking place against the backdrop of our efforts to expand global openness, growth, and development though a successful Doha Development Round of world trade talks. The next World Trade Organization ministerial meeting will be held in this hemisphere, in Cancun, Mexico. Bob Zoellick, the U.S. Trade Representative, is leading the charge to make that meeting a success.

We will do our part to open the hemisphere to the benefits of freer trade and investment. But our friends, public and private, must also get involved to ensure that the final agreements give the biggest boost to our economies and offer the greatest benefit to our citizens.

We need other governments to negotiate in good faith, with the well-being of their citizens uppermost in mind. And we need business people like you to advise us and push us to conclude and ratify strong agreements.

We can combat terrorism and trafficking. We can fight disease. We can strengthen human ties. We can expand trade. But none of our efforts will be enough if men and women lack confidence in their democracies and their prospects for a better future.

Last year, standing before this group, I warned of a lingering dissatisfaction with the quality of democracy and the results of economic reform. Despite some progress over the past year, dissatisfaction remains.

In part, such feelings are a measure of how far our hemisphere has come, politically and economically. Back in the 1980s, when I was national security advisor to President Reagan, much of the hemisphere was ruled by generals and dictators. Today, every country but one has a freely elected president or prime minister. Former adversaries compete in the democratic arena of electoral politics.

The sole exception is Cuba, where the Castro regime is cracking down on Cuban citizens who dare ask for a voice in how they are governed. Far from offering liberty and hope, the regime is turning to arrests and harsh prison sentences in a vain effort to stamp out the Cuban people's thirst for democracy.

We applaud the nations of Latin America that introduced and supported the recent resolution in the United Nations Commission on Human Rights insisting that Cuba accept a special human rights envoy. The Castro government's refusal to accept the U.N. inquiry only proves the case against it. Why would Castro reject scrutiny if he had nothing to hide?

Now the OAS is taking up Cuba's human rights practices. We look to our friends in the OAS to live up to the ideals we share and take a principled stand for freedom, democracy, and human rights in Cuba. We look to them to join us in developing a common approach to supporting Cubans dedicated to building a democratic Cuba. We can do no less. For our hemisphere will not be fully free until the Cuban people are free.

Political progress in the region has gone hand-in-hand with economic reforms. Although many countries face severe economic challenges, the old demons are gone. Inflation is largely tamed. Countries are increasingly open to foreign trade and investment. Economic setbacks occur, but no longer lead inevitably to economic crisis.

These improvements have created increased expectations for good government and broader prosperity. People have sacrificed, and they want to see results -- in their pocketbooks, in their pay packets, and in their polling places.

But too many people still suffer from weak governments and ineffective institutions. In too many places, rule of law and property rights are honored mainly in the breach. Children are not adequately educated for jobs in a globalizing world or citizenship in a democracy. Health-care systems are failing. Corruption still saps the marrow of democracy and, like terrorism, it is all too widespread. Economic stagnation and even deep recession retard development.

The challenge to the governments of the region is clear. They must meet their peoples' just expectations for a better future. To do so, they must see political, institutional, and economic reforms through to completion. To do so, they need support -- from friendly governments, but also from business.

The election of President Lula in Brazil is a powerful example of voters using the democratic process in search of better lives. It is important for the hemisphere that this experiment in reform through democracy succeed.

Argentines are also seeking an electoral route to better lives. Yesterday, they voted in the first round of presidential elections. We all hope the new Argentine government, once elected and in place, will be able to move that great nation forward.

Paraguayans, too, have elected a new president. We wish President-elect Nicanor Duarte Frutos well in his efforts to strengthen Paraguay's democratic institutions.

The challenges that our hemisphere confronts, and the solutions, are inextricably intertwined. Political stability and security require and reinforce economic growth. Good government is essential to all.

The problems are difficult. But they are not insuperable. The coming years can and should be a time of progress.

Hemispheric progress requires continued American engagement. In trade, in security, in support for democracy, and across the board, we are deeply involved in expanding peace, prosperity, and freedom in this hemisphere. These are essential elements of the president's foreign-policy agenda, and that will not change.

Progress also requires the deep commitment of the countries of the region. We are seeing commitment, but more needs to be done to complete the reforms needed to give new generations new hope.

And progress requires business activity -- investing, trading, and doing business where good policies are in place; spreading best practices where they can make a difference; supporting responsible policies that free entrepreneurs, educate children, and improve the health of all; earning profits by building economies; encouraging leaders, both public and private, to make the changes necessary to attract your business.

In the final analysis, progress relies on partnerships -- between different governments, between governments and their citizens, and between governments and business. In the Council of the Americas, the governments of the Americas have a wonderful partner for progress. I congratulate all of you for your energy, your commitment, and your impact.

Thank you.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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