Pact on Free Trade Zone by 2005

By Sridhar Krishnaswami

WASHINGTON, APRIL. 23. Leaders of the Western hemisphere - numbering 34 in all but minus Mr. Fidel Castro of Cuba - have put their signatures to a wide-ranging agreement that will usher in the world's most powerful trading bloc by 2005. The U.S. President, Mr. George W Bush, while expressing optimism over the turn of events, said he would work on getting the Fast Track Authority from Congress by year-end.

The Summit of the Americas ended on Sunday in Quebec City, Canada, with the Presidents and Prime Ministers of the world's largest to some of the smallest economies agreeing on a Free Trade Zone by the end of 2005. The leaders also agreed that this Free Trade Zone was reserved only for democracies and that any country that veered away from democratic principles would be thrown out of the arrangement. The leaders, however, stopped short of saying that a member would be automatically thrown out if democracy was in danger in that country. Instead, the leaders said they would ``conduct consultations'' if a particular system was disrupted from the democratic process. Democracy was ``fundamental to the advancement of all our objectives,'' it was stressed.

The accord would create a barrier-free trade zone from the Arctic to Argentina involving a market of about 800 millions and economies ranging from the most powerful to some of the tiniest nations in the world. The leaders also pledged to bring down by half the number of people living under extreme poverty conditions by 2015.

The three-page final document was finalised against the backdrop of the anti-globalisation protesters who tried their best to disrupt the meeting. But Canada would certainly dispute any claims of ``success'' on the part of the demonstrators. The protesters argued that they were not against free trade but that the present scheme worked out for the Western Hemisphere would only worsen poverty. The proponents responded that the coming together of the $13 trillion economies would eliminate national subsidies and increase competition. ``I am very optimistic about what took place here. It gives us a great chance to expand the opportunities around our hemisphere knowing that it will help our own country,'' Mr. Bush said.

The U.S. President also responded to the pointers from other parts of the world. For instance, the European Union was striking deep roots and it continues to grow; ASEAN is thinking of an Asian Union that will also include Japan, China and South Korea.

What is significant is that participants while trying to emphasise the importance of democracy as a vital component of this Free Trade Zone took a shot at Haiti and its President, Mr. Jean-Bertrand Aristide for the flawed elections and the ensuing political mess and chaos.

The next Summit of the Americas will take place in Argentina, at a date to be determined later.

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Section  : International
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