The OAS plays an important role in advancing the goals for increased trade and economic integration shared by the countries of North, Central and South America         and the Caribbean. The keystone of this integration initiative is the creation of a hemisphere-wide trading zone, the Free Trade Area of the Americas (FTAA), stretching from the Yukon to Patagonia. The FTAA, which has been in the making since 1994, will be established by 2005 with the goal of progressively eliminating barriers to trade and investment in the region. The OAS works alongside the Inter-American Development Bank (IDB) and the United Nations Commission on Latin America and the Caribbean (ECLAC) to support the trade negotiations. 

Free trade is an integral part of the Summit of the Americas process. The leaders of the 34 democratic countries of the Western Hemisphere launched the process of creating the FTAA in 1994, at the First Summit of the Americas. The Second Summit of the Americas, in 1998, marked the beginning of formal FTAA negotiations. At the Third Summit of the Americas, held in April 2001 in Quebec City, Canada, the presidents and prime ministers agreed to conclude negotiations by January 2005 so the trade pact can enter into force no later than December of that same year. 

“Free and open economies, market access, sustained flows of investment, capital formation, financial stability, appropriate public policies, access to technology and human resources development and training are key to reducing poverty and inequalities, raising living standards and promoting sustainable development,” the leaders stated in their Declaration of Quebec City. They welcomed the progress made so far, including the development of a preliminary FTAA draft and the decision to make it available to the public—an unprecedented move in a trade negotiation. 

“The decision to make public the preliminary draft of the FTAA Agreement is a clear demonstration of our collective commitment to transparency and to increasing and sustained communication with civil society,” the presidents and prime ministers said. The draft is now available on the FTAA public Website (ftaa-alca.org)  and through the Foreign Trade Information System (www.sice.oas.org). 

The final characteristics of the FTAA will be determined through negotiations by government officials from the 34 participating countries. The trade issues currently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Under the guiding principles for these negotiations, decisions are made by consensus and negotiations are conducted in a transparent manner. The agreement is to be consistent with the World Trade Organization (WTO) and improve on the WTO rules when possible. Negotiations will be a single undertaking, negotiating all issues simultaneously. The FTAA can co-exist with bilateral and subregional agreements, and countries may negotiate and accept obligations as a subregional unit. Special attention will be given to the needs, economic conditions and opportunities of smaller economies, and their different levels of development should be taken into account. FTAA rights and obligations will be shared by all countries. 

The OAS Role

In 1995, OAS Secretary General César Gaviria created the Trade Unit to provide technical support to the FTAA process, conduct research, improve the flow of information, and help coordinate the efforts of regional and subregional organizations. Since then it has evolved to meet new needs and mandates. The OAS Trade Unit is directed by José Manuel Salazar, who was formerly Costa Rica’s Foreign Trade Minister and who chaired the final preparatory stage of the process leading to the official launching of the FTAA negotiations. 

The OAS, the IDB and ECLAC make up the Tripartite Committee, which supports the trade process. The OAS Trade Unit’s principal responsibilities include: 

• Providing analytical and technical support to the nine FTAA negotiating groups, as well as special committees. 

• Compiling information on trade laws and measures and preparing substantive studies and reports for FTAA working and negotiating groups. 

• Organizing regional technical assistance and training activities. This effort is intended mainly to help smaller economies become better prepared for trade negotiations. 

• Disseminating documents and statistics electronically through the Foreign Trade Information System. Up-to-date information about the FTAA process is available on its Web site (www.sice.oas.org).  

For more information:  José Manuel Salazar, Director, Trade Unit

Tel: (202) 458-3181
Fax: (202) 458-3561
trade@sice.oas.org
www.sice.oas.org
 

Last updated: September 2001