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Economics and Trade
Ninth Round of U.S.-Andean Trade Talks Paves Way for Progress
Regina Vargo, Assistant U.S. Trade Representative for the Americas
The ninth round of trade negotiations between the United States and the nations of Colombia, Ecuador and Peru yielded some progress toward a proposed U.S.-Andean free-trade agreement, says Regina Vargo, assistant U.S. trade representative for the Americas. Briefing reporters on April 26, Vargo explained that the latest round of trade talks, held April 18-22 in Lima, Peru, was notable in terms of furthering the region's efforts to build trade capacity. "[I]n general, I think we advanced our negotiations on several areas in the text" of the agreement, which is still being hammered out.
The proceedings were complicated by recent developments in Ecuador, Vargo said. Political turmoil led to the April 20 ouster of Ecuador's President Lucio Gutierrez at the hands of the country's legislature. Gutierrez was immediately replaced by his vice president, Alfredo Palacio. As a result of the abrupt change of government, "the Ecuadorian delegation participated" in the Andean trade talks, "but did not have instructions that enabled them to take specific positions."
Although U.S. trade negotiators did not hold bilateral meetings with their Ecuadorian counterparts, "we understand that they [the Ecuadorian delegation] arrived with some proposals," she said. "We'll await a signal from them on when to begin bilateral talks."
Responding to a question on agriculture-related issues, Vargo confirmed that "we did have bilateral talks with Peru and Colombia," which focused primarily on grains. "We received some new proposals, which we're evaluating."
At this stage in the trade talks, she indicated, "we continue to narrow our differences" with the Andean nations, so "it's premature to say" when an agreement will be completed. The next round of U.S.-Andean trade negotiations will take place in June, possibly in the Ecuadorian capital city of Quito.
Currently, the proposed U.S.-Andean trade pact serves as "an introduction to [trade] liberalization" for the Andes, Vargo observed. "I'm not sure that all our Andean partners are there yet."
Meanwhile, she said, Andean nations "have shown an intense amount of interest" in the proposed U.S. free-trade agreement with Central America and the Dominican Republic (known as CAFTA-DR, or simply CAFTA). Andean officials are closely monitoring CAFTA's reception by the U.S. Congress and assessing its prospects for congressional approval.
The Bush administration "is focused on getting the CAFTA passed" by
lawmakers; "that's our current objective," Vargo said. With regard to
the U.S.-Andean free trade agreement, she explained, "we have a
narrower but important set of issues that will take some time to work
our way through."
Washington, D.C.
April 26, 2005