[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Notices]
[Pages 36470-36473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17723]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Free Area Trade of the Americas

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of initiation of Free Trade of the Americas (FTAA) 
negotiations; request for pubic comment on initial U.S. objectives for 
the nine negotiating groups.

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SUMMARY: The Trade Staff Committee (TPSC) is providing notice of the 
United States' participation in trade negotiations with the 33 
countries in the Western Hemisphere participating in the Summit of the 
Americas \1\ and of the

[[Page 36471]]

principles and objectives for the negotiations to which the 34 
countries have agreed. The TPSC invites public comment on initial U.S. 
objectives for each of the nine FTAA negotiating groups.

    \1\ Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, 
Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominica, 
Dominican Republic, Ecuador, El Salador, Grenada, Guatemala, Guyana, 
Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, 
St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, 
Suriname, Trinidad and Tobago, Uruguay, United States, and 
Venezuela.
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FOR FURTHER INFORMATION CONTACT:
For procedural questions concerning public comments contact Gloria 
Blue, Executive Secretary, Trade Policy Staff Committee, Office of the 
United States Trade Representative, (202) 395-3475. All questions 
concerning the negotiations should be directed to Karen M. Lezny, 
Director for the Free Trade Area of the Americas, Office of the Western 
Hemisphere, Office of the United States Trade Representative, (202) 
395-5190.

SUPPLEMENTARY INFORMATION: On December 11, 1994, President Clinton and 
the 33 other democratically-elected leaders in the Western Hemisphere 
met in Miami, Florida for the first Summit of the Americas. They agreed 
to conclude negotiations on a Free Trade Area of the Americas (FTAA) by 
the year 2005, and to achieve concrete progress toward that objective 
by the end of the century. The 34 leaders agreed to negotiate a 
balanced and comprehensive agreement covering the following areas, 
among others: tariffs and non-tariff barriers affecting trade in goods 
and services; agriculture; subsidies; investment; intellectual property 
rights; government procurement; technical barriers to trade; 
safeguards; rules of origin; antidumping and countervailing duties; 
sanitary and phytosanitary standards and procedures; dispute 
resolution; and competition policy. The 34 Western Hemisphere ministers 
responsible for grade met four times; in June 1995 in Denver, Colorado; 
in March 1996 in Cartagena, Colombia; in May 1997 in Belo Horizonte, 
Brazil; and, in March 1998 in San Jose, Costa Rica, in order to prepare 
for the negotiation of the FTAA Agreement. The trade ministers created 
11 working groups that collected and analyzed information on existing 
trade-related measures in each area to assist them in their 
preparations.
    At the San Jose meeting in March 1998, the trade ministers 
recommended that the Western Hemisphere leaders initiate the 
negotiations and provided them recommendations on the structure, 
objectives, principles, and venues of the negotiations. The trade 
ministers reaffirmed the principles and objectives that have guided 
work on the FTAA since Miami, including that the agreement will be 
balanced, comprehensive, and WTO-consistent. They also reaffirmed that 
the agreement will constitute a single undertaking; will take into 
account the needs, economic conditions and opportunities of the smaller 
economies; and, will not raise additional barriers to the trade of 
other countries. The ministers pledged to continue to avoid to the 
greatest extent possible the adoption of policies that adversely affect 
trade in the hemisphere. They also reiterated that the negotiation of 
the FTAA will take into account the broad social and economic agenda 
contained in the Miami Declaration of Principles and Plan of Action 
with a view to contributing to raising living standards, to improving 
the working conditions of all people in the Americas and to better 
protecting the environment.
    On April 18-19, 1998, President Clinton and his 33 counterparts in 
the Western Hemisphere initiated the Free Trade Area of the Americas 
negotiations at the Summit of the Americas meeting in Santiago, Chile. 
The leaders agreed to the general framework proposed by the 34 trade 
ministers, which include the establishment initially of nine 
negotiating groups to be guided by general principles and objectives 
and specified objectives as agreed by the ministers in March 1998. The 
leaders also agreed to the establishment of a Trade Negotiation 
Committee (TNC) composed of the 34 vice ministers responsible for trade 
to oversee the negotiation. The TNC held its first meeting on June 17-
19 in Buenos Aires. Three other entities also were established: a 
Committee of Government Representatives on Civil Society, a joint 
public-private sector Experts Committee on Electronic Commerce, and a 
Consultative Group on Smaller Economies.
    The nine negotiating groups are for: Market Access,\2\ Agriculture; 
Investment; Services; Government Procurement; Dispute Settlement; 
Intellectual Property Rights; Subsidies, Antidumping and Countervailing 
Duties; and Competition Policy. They will begin their work no later 
than September 30, 1998 and will meet in Miami, Florida. The 
negotiating groups will be guided in their work by the general 
principles and objectives as well as the specific objectives agreed by 
the ministers, as set out in Annex I and Annex II of the San Jose 
Declaration, reproduced below.
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    \2\ The market access negotiating group will cover tariffs, non-
tariff measures, standards and technical barriers to trade (for both 
agricultural and industrial products), customs procedures (for both 
agricultural and industrial products), rules of origin (for both 
agricultural and industrial products), and safeguards (for both 
agricultural and industrial products). The agriculture negotiating 
group will cover tariff, non-tariff measures, sanitary and 
phytosanitary measure (for both agricultural and industrial 
products), and export subsidies and other trade-distorting practices 
affecting agricultural products in the Hemisphere.
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    The establishment of nine negotiating groups is an initial 
structure for the negotiations. This structure is flexible and is 
expected to be modified over time as required to assist the 
negotiations.
    Since the Santiago Summit, USTR has held informal consultations 
with various sectors of civil society, including consumer, labor, 
business and environmental interests, which have expressed views and an 
interest in commenting on U.S. positions and objectives for the nine 
negotiating groups.

Public Comments

    To prepare for the initial meetings of the nine negotiating groups 
starting in September 1998, the TPSC invites written comment on what 
should be the U.S. positions and objectives with respect to each of the 
negotiating groups. U.S. negotiators seek input beyond the general 
principles and objectives and specific objectives agreed to in San Jose 
by the United States as one of the 34-countries.
    USTR will seek additional public comment separately on other issues 
related to the FTAA, including the Committee of Government 
Representatives on Civil Society and concerning the economic effects of 
the removal of duties and nontariff barriers to trade among FTAA 
participating countries.
    Those persons wishing to submit written comments should provide 
twenty (20) typed copies (in English) no later than Wednesday, July 29, 
1998, to Gloria Blue, Executive Secretary, Trade Policy Staff 
Committee, Office of the U.S. Trade Representative, Room 501, 600 17th 
Street, NW, Washington, D.C., 20508. Comments should state clearly the 
position taken and should describe the specific information supporting 
that position.
    If the submission contains business confidential information, 
twenty copies of a non-confidential version must also be submitted. A 
justification as to why the information contained in the submission 
should be treated confidentially must be included in the submission. In 
addition, any submissions containing business confidential information 
must be clearly marked ``Confidential'' at the top and bottom of the 
cover page (or letter) and of each succeeding page of the

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submission. The version that does not contain confidential information 
should also be clearly marked, at the top and bottom of each page, 
``public version'' or ``non-confidential.''
    Written comments submitted in connection with this request, except 
for information granted ``business confidential'' status pursuant to 15 
CFR 2003.6, will be available for public inspection in the USTR Reading 
Room, Room 101, Office of the United States Trade Representative, 600 
17th. St., N.W., Washington, D.C. An appointment to review the file may 
be made by calling Brenda Webb (202) 395-6186. The Reading Room is open 
to the public from 9:30 a.m. to 12 noon, and from 1 p.m. to 4 p.m. 
Monday through Friday.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.

San Jose Declaration

Annex I--General Principles and Objectives

    The negotiations for the construction of the FTAA will be guided 
by the following General Principles and Objectives:

General Principles

    (a) Decisions in the FTAA negotiating process will be made by 
consensus.
    (b) Negotiations will be conducted in a transparent manner to 
ensure mutual advantage and increased benefits to all participants 
of the FTAA.
    (c) The FTAA Agreement will be consistent with the rules and 
disciplines of the WTO. With this purpose, the participating 
countries reiterate their commitment to multilateral rules and 
disciplines, in particular Article XXIV of the General Agreement on 
Tariffs and Trade (GATT) 1994 and its Uruguay Round Understanding, 
and Article V of the General Agreement on Trade in Services (GATS).
    (d) The FTAA should improve upon WTO rules and disciplines 
wherever possible and appropriate, taking into account the full 
implications of the rights and obligations of countries as members 
of the WTO.
    (e) The negotiations will begin simultaneously in all issue 
areas. The initiation, conduct and outcome of the negotiations of 
the FTAA shall be treated as parts of a single undertaking which 
will embody the rights and obligations as mutually agreed upon.
    (f) The FTAA can co-exist with bilateral and sub-regional 
agreements, to the extent that the rights and obligations under 
these agreements are not covered by or go beyond the rights and 
obligations of the FTAA.
    (g) Countries may negotiate and accept the obligations of the 
FTAA individually or as members of a sub-regional integration group 
negotiating as a unit.
    (h) Special attention should be given to the needs, economic 
conditions (including transition costs and possible internal 
dislocations) and opportunities of smaller economies, to ensure 
their full participation in the FTAA process.
    (i) The rights and obligations of the FTAA will be shared by all 
countries. In the negotiation of the various thematic areas, 
measures such as technical assistance in specific areas and longer 
periods for implementing the obligations could be included on a case 
by case basis, in order to facilitate the adjustment of smaller 
economies and the full participation of all countries in the FTAA.
    (j) The measures agreed upon to facilitate the integration of 
smaller economies in the FTAA process shall be transparent, simple 
and easily applicable, recognizing the degree of heterogeneity among 
them.
    (k) All countries shall ensure that their laws, regulations and 
administrative procedures conform to their obligations under the 
FTAA agreement.
    (l) In order to ensure the full participation of all countries 
in the FTAA, the differences in their level of development should be 
taken into account.

General Objectives

    (a) To promote prosperity through increased economic integration 
and free trade among the countries of our Hemisphere, which are key 
factors for raising standards of living, improving the working 
conditions of people in the Americas and better protecting the 
environment.
    (b) To establish a Free Trade Area, in which barriers to trade 
in goods and services and investment will be progressively 
eliminated, concluding negotiations no later than 2005 and achieving 
concrete progress toward the attainment of this objective by the end 
of this century.
    (c) To maximize market openness through high levels of 
disciplines through a balanced and comprehensive agreement.
    (d) To provide opportunities to facilitate the integration of 
the smaller economies in the FTAA process in order to realize their 
opportunities and increase their level of development.
    (e) To strive to make our trade liberalization and environmental 
policies mutually supportive, taking into account work undertaken by 
the WTO and other international organizations.
    (f) To further secure, in accordance with our respective laws 
and regulations, the observance and promotion of worker rights, 
renewing our commitment to the observance of internationally 
recognized core labor standards and acknowledging that the 
International Labor organization is the competent body to set and 
deal with those core labor standards.

Annex II--Objectives by Issue Area

    We have agreed that the negotiations for the construction of the 
FTAA, in the different issue area, will be guided by the following 
objectives:

Market Access

    (a) Consistent with the provisions of the WTO, including article 
XXIV of the General Agreement on Tariffs and Trade (GATT 1994) and 
its Understanding on the Interpretation of Article XXIV of the 
General Agreement on Tariffs and Trade 1994, to progressively 
eliminate, tariffs, and non tariff barriers, as well as other 
measures with equivalent effects, which restrict trade between 
participating countries.
    (b) All tariffs will be subject to negotiation.
    (c) Different trade liberalization timetables may be negotiated.
    (d) To facilitate the integration of smaller economies and their 
full participation in the FTAA negotiations.

Agriculture

    (a) The objectives of the negotiating group on Market Access 
shall apply to trade in agricultural products. Rules of origin, 
customs procedures and Technical Barriers to Trade issues will be 
addressed in the Market Access negotiating group.
    (b) To ensure that sanitary and phytosanitary measures are not 
applied in a manner which would constitute a means of arbitrary or 
unjustifiable discrimination between countries or a disguised 
restriction to international trade, in order to prevent 
protectionist trade practices and facilitate trade in the 
hemisphere. Consistent with the WTO Agreement on the Application of 
Sanitary and Phytosanitary Measures (SPS Agreement), said measures 
will only be applied to achieve the appropriate level of protection 
for human, animal or plant life or health, will be based on 
scientific principles, and will not be maintained without sufficient 
scientific evidence.
    Negotiations in this area involve identifying and developing 
measures needed to facilitate trade, following and examining in 
depth the provisions set down in the WTO/SPS Agreement.
    (c) To eliminate agricultural export subsidies affecting trade 
in the Hemisphere.
    (d) To identify other trade-distorting practices for 
agricultural products, including those that have an effect 
equivalent to agriculture export subsidies, and bring them under 
greater discipline.
    (e) Agricultural products covered are the goods referred to in 
Annex I of the WTO Agriculture Agreement.
    (f) Incorporate progress made in the multilateral negotiations 
on agriculture to be held according to Article 20 of the Agreement 
on Agriculture, as well as the results of the review of the SPS 
Agreement.

Rules of Origin

    (a) To develop an efficient and transparent system of rules of 
origin, including nomenclature and certificates of origin, in order 
to facilitate the exchange of goods, without creating unnecessary 
obstacles to trade.

Customs Procedures

    (a) To simplify customs procedures, in order to facilitate trade 
and reduce administrative costs.
    (b) To create and implement mechanisms to exchange information 
in customs issues among FTAA countries.
    (c) To design effective systems to detect and combat fraud and 
other illicit customs activities, without creating unnecessary 
obstacles to foreign trade.
    (d) To promote customs mechanisms and measures that ensure 
operations be conducted with transparency, efficiency, integrity and 
responsibility.

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Investment

    (a) To establish a fair and transparent legal framework to 
promote investment through the creation of a stable and predictable 
environment that protects the investor, his investment and related 
flows, without creating obstacles to investments from outside the 
hemisphere.

Standards and Technical Barriers to Trade

    (a) To eliminate and prevent unnecessary technical barriers to 
trade in the FTAA, based on the proposals contained in the Common 
Objectives Paper approved by the Working Group.

Subsidies, Antidumping and Countervailing Duties

    (a) To examine ways to deepen, if appropriate, existing 
disciplines provided in the WTO Agreement on Subsidies and 
Countervailing Measures and enhance compliance with the terms of the 
WTO Agreement on Subsidies and Countervailing Measures.
    (b) To achieve a common understanding with a view to improving, 
where possible, the rules and procedures regarding the operation and 
application of trade remedy laws in order to not create unjustified 
barriers to trade in the Hemisphere.

Government Procurement

    (a) The broad objective of negotiations in government 
procurement is to expand access to the government procurement 
markets of the FTAA countries.
    More specifically, the objectives are:
    (a) To achieve a normative framework that ensures openness and 
transparency of government procurement processes, without 
necessarily implying the establishment of identical government 
procurement systems in all countries;
    (b) To ensure non-discrimination in government procurement 
within a scope to be negotiated;
    (c) To ensure impartial and fair review for the resolution of 
procurement complaints and appeals by suppliers and the effective 
implementation of such resolutions.

Intellectual Property Rights

    (a) To reduce distortions in trade in the Hemisphere and promote 
and ensure adequate and effective protection to intellectual 
property rights. Changes in technology must be considered.

Services

    (a) Establish disciplines to progressively liberalize trade in 
services, so as to permit the achievement of a hemispheric free 
trade area under conditions of certainty and transparency;
    (b) Ensure the integration of smaller economies into the FTAA 
process.

Competition Policy

    The objectives of the negotiations are:
    (a) General Objectives:
     To guarantee that the benefits of the FTAA 
liberalization process not be undermined by anti-competitive 
business practices.
    (b) Specific Objectives:
     To advance towards the establishment of juridical and 
institutional coverage at the national, sub-regional or regional 
level, that proscribes the carrying out of anti-competitive business 
practices;
     To develop mechanisms that facilitate and promote the 
development of competition policy and guarantee the enforcement of 
regulations on free competition among and within countries of the 
Hemisphere.

Dispute Settlement

    (a) To establish a fair, transparent and effective mechanism for 
dispute settlement among FTAA countries, taking into account inter 
alia the WTO Understanding on Rules and Procedures Governing the 
Settlement of Disputes.
    (b) To design ways to facilitate and promote the use of 
arbitration and other alternative dispute settlement mechanisms, to 
solve private trade controversies in the framework of the FTAA.
    Work in different groups may be interrelated, such as 
agriculture and market access; services and investment; competition 
policy and subsidies, antidumping and countervailing duties; among 
others. The TNC shall identify linkages and outline appropriate 
procedures to ensure timely and effective coordination. We agree to 
give the mandate to the relevant negotiating groups to study issues 
relating to: the interaction between trade and competition policy, 
including antidumping measures; market access and agriculture, in 
order to identify any areas that may merit further consideration by 
us. The groups involved will report their results to the TNC no 
later than December 2000. This is without prejudice to decisions 
made by the TNC to dissolve, establish or merge groups. Likewise, 
the negotiating groups may establish ad-hoc working groups.

[FR Doc. 98-17723 Filed 7-2-98; 8:45 am]
BILLING CODE 3190-01-M