Free Trade Area of the Americas: Status & Prospects

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Presentation transcript:

Free Trade Area of the Americas: Status & Prospects Parr Rosson, Director Center for North American Studies Department of Agricultural Economics Texas A&M University

Overview Background Progress Considerations for Agriculture

Background Enterprise for the Americas Initiative Act Miami Ministerial-1994 Negotiations Underway with Consideration of WTO Regional Trade Arrangements: NAFTA MERCOSUR (Argentina, Brazil, Paraguay & Uruguay)

Progress Concept is to form a Free Trade Area of the Americas by 2006 Negotiations Focused on Areas to be Addressed Agriculture Negotiated Under NGAG & NGMA

Progress Development of Modalities Lack of Trade Promotion Authority Starting Point Magnitude of Reductions Time Frame for Tariff Reductions Lack of Trade Promotion Authority

Considerations for Agriculture Market Access: US Favors Coordinated Approach-Method of Determining Base Rates is Same for all Sectors U.S. Wants to Eliminate All Export Subsidies w/in FTAA Eliminate Exclusive Export Rights for State Traders

Considerations for Agriculture Ensure that SPS NOT Used as Arbitrary or Unjustified Trade Barriers Other Trade Distorting Practices Domestic Support: WTO Price Stabilization (Price Bands) Differential Export Taxes Special & Differential Treatment/Safeguards

Summary Negotiations Proceeding with Target Date of Jan. 2005 for Completion & Jan. 2006 for Implementation Modalities Now Being Developed Most of Draft Text Still Bracketed

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