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Corruption stands in way of trade
PM: Summit of Americas unlikely to adopt Canada's democracy clause, create world's largest free trade zone

 

MONTERREY, Mexico (Monday, January 12, 2004) .- Prime Minister Paul Martin expressed doubt yesterday that the bitterly divided nations of the Americas can meet a 2005 deadline for the pursuit of a free-trade zone encompassing 800 million people with an economic output of $11 trillion U.S.

The 34 leaders from the hemisphere had vowed to form the world's largest free-trade zone and bolster democracy in a region beset by poverty, corruption and a history of fragile democracies at the 2001 summit in Quebec City.

But a hemispheric trade deal now seems out of the question after Brazil -- South America's largest country -- encouraged other Latin American nations to refuse to sign unless Washington included farm subsidies and steel protection in the talks.

Latin American leaders have also taken issue with plans by U.S. President George W. Bush to enforce a Canadian initiative to kick corrupt nations out of the 34-member Organization of American States (OAS). Leaders from the countries are holding a summit this week in the industrial city of Monterrey, Mexico.

After meeting with Mexican President Vicente Fox last night, Mr. Martin strongly endorsed the need for the leaders to enforce the democracy clause and stamp out corruption in Latin American countries.

"You have to deal with corruption. Corruption is a massive obstacle to the development of democracy and to providing (livelihood) for its people."

Mr. Martin said there cannot be any social or economic development with the hard-pressed countries of Latin America unless corruption is dealt with.

Mr. Fox echoed Mr. Martin's sentiments, saying efforts by Mexico to eliminate corruption have bolstered the living standard of its people. Mr. Fox also said he is a strong proponent of a hemispheric free trade deal, noting that NAFTA enriched the Mexican economy and improved living standards.

Mr. Martin acknowledged he was not optimistic the 2005 deadline can be achieved.

Difficulty will remain so long as Brazil holds its ground and Mr. Bush refuses to compromise -- something that is unlikely in a U.S. election year.

"I think it's too bad because an agreement would help poorer countries in the hemisphere. ... I think it would help international trade if we could reach an agreement," he told reporters en route to the summit.

"If you take a look at the position that Brazil has taken, clearly there would have to be a settlement on the whole agriculture issue."

However, Mr. Martin said Canada will join Mr. Bush in continuing to seek bilateral trade pacts with countries in Latin America as a means to boost their living standards, such as the agreements concluded with Costa Rica and Chile under former prime minister Jean Chretien.

"If we can't reach a free trade agreement, Canada will certainly continue to sign bilateral free trades with other countries," he said.

"If we miss that deadline, I don't think we should give up. I think we should continue to push for free trade of the Americas. I think it would be very good for the countries of South America and I think it would be very good for Canada."

In the absence of free trade areas stretching from Alaska to Argentina, Mr. Bush has also pursued bilateral and multilateral pacts with regional blocks. It has signed a deal with Chile and reached an agreement with Central American nations.

In Quebec City, the leaders also adopted a Canadian-sponsored statement obliging nations who want the benefits of a liberalized trade to observe democratic norms or face expulsion from the trade bloc and future summits.

Mr. Bush, who arrives at the summit today, has made it clear he wants to kick corrupt governments out of the OAS, a move vehemently opposed by several Latin American nations.

Yesterday, Venezuela President Hugo Chavez lashed out at Washington, saying the Americans should not "stick their noses" in Venezuela's affairs.

He was commenting on remarks made by U.S. National Security Adviser Condoleezza Rice, who said on Friday that Mr. Chavez should show "that he believes in democratic processes" by allowing the recall referendum on his rule to take place.

The comments followed a week of back-and-forth comments that began when U.S. officials accused Venezuela and Cuba of co-operating to undermine democratic governments in the region.

"It is not up to them to stick their noses here in Venezuela," said Mr. Chavez, one of Latin America's harshest critics of the Bush administration.

"Venezuela is a free, sovereign and independent country."

Caracas' ties with Washington have been strained over Mr. Chavez's friendly relations with Cuba's Communist dictator, Fidel Castro, and his opposition to a U.S.-backed hemispheric free trade zone.

Argentina's President Nesto Kirchner and Brazil's Luiz Ignacio Lula Da Silva have also attacked Washington over free trade and defended their close ties to Mr. Castro.

Brazil is also upset at U.S. security steps to photograph and fingerprint foreigners and is doing the same to U.S. citizens arriving in Brazil -- a move that has angered the Bush administration.

Mr. Fox told Fox News Sunday he would like eventually to work toward the free movement of workers between Canada, the U.S. and Mexico.

Until then, he was pleased that Mr. Bush has promised to let migrants spend at least three years working in the United States.

© The Ottawa Citizen 2004

 
 


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