WHAT IS THE FREE TRADE AREA OF THE AMERICAS (FTAA)?

The decision to establish a Free Trade Area of the Americas (FTAA) was made in December 1994, in Miami, USA, at the first Summit of the Americas, by the Heads of State and Government of the 34 countries in the region (with the exception of Cuba) The primary objective of the FTAA is to promote increased trade and investment among the countries of the hemisphere through the progressive liberalization of barriers to trade and investment.

Efforts have been made to get the FTAA negotiations back on track, even though the self-imposed deadline for reaching a final agreement of January 2005 has been missed.
Objectives of the FTAA

1. Promote economic growth and prosperity of the member countries by lowering barriers to trade and investment within the Western Hemisphere.
2. Conclude an Agreement that goes beyond the WTO commitments (a WTO plus agreement)
3. The FTAA process co-exists with existing trade agreements and the sub-regional trade blocs can have a place at the negotiating table.
4. Promote prosperity through increased integration and free trade
5. Establish a Free Trade Area in which barriers to trade in goods, services and investment are progressively eliminated by no later than 2005
6. Maximize market openness
7. Facilitate integration of smaller economies into the FTAA
8. Strive to make trade liberalization and environmental policies mutually supportive
9. Secure observance and protection of worker rights

What issues are being negotiated?

The issues being negotiated for the FTAA include agriculture, market access, services, investment, dispute settlement, intellectual property rights, subsidies and anti-dumping, competition policy, and government procurement.

The deadline for agreement for concluding an FTAA Agreement by January 2005 has now passed. The process is therefore now at a critical phase. The negotiations have been stalled since the Trade Negotiations Committee (TNC) failed to reach consensus on the framework for negotiations in the nine negotiating groups, following the 8th Ministerial Meeting held in Miami, Florida in November 2003.

Future Site of the FTAA Secretariat

Even though the FTAA has been stalled for the last three years, there is on-going lobbying for the permanent home of the FTAA. Countries seeking to secure the headquarters of the Secretariat of the FTAA are the United States, Trinidad and Tobago, Mexico, and Panama. Trinidad and Tobago is among a number of countries bidding to become the headquarters of the FTAA, which when established will become the biggest trading bloc in the hemisphere encompassing 34 countries.

CARICOM Members are in support of Trinidad and Tobago being the permanent home of the FTAA Secretariat. Chile, Peru and Venezuela have also announced their support for Trinidad and Tobago. Trinidad and Tobago has been lobbying MERCOSUR for their support.