/IPS DEVELOPMENT BULLETIN/ AMERICAS: Free Trade Depends on – Africa?

By Estrella Gutiérrez Reprint | | Print |

Estrella Gutierrez

CARACAS, May 17 1997 (IPS) - The fast track negotiating authority that has so far eluded U.S. President Bill Clinton for negotiating the Free Trade Area of the Americas (FTAA) at last seems likely to be granted by Congress – through a bill promoting trade with Africa.

A report released Tuesday by the Caracas-based Latin American Economic System (SELA) indicates that the U.S. government will soon obtain fast track authority in Congress which will enable it to negotiate a continent-wide free trade area, but as part of a package of trade initiatives with Arica.

For months the Clinton administration’s bid for fast track has been blocked by the Republican-dominated Congress.

Without that authority, Washington has been unable to participate in formal negotiations toward the gradual creation of the FTAA, which are set to be launched in March 1998 and to conclude sometime between 2003 and 2005.

Trade ministers from the 34 countries of the Americas that are taking part in discussions on the FTAA will gather for the third time on Thursday and Friday in Belo Horizonte, Brazil, to remove stumbling blocks on the road toward the formal talks. Officials began to meet Tuesday in preparation for the two-day gathering.

Latin American countries have criticised Washington for trying to set its own conditions and speed up the talks when it was not even in a position to formally participate in the negotiations.

But now, SELA sources point out, the U.S. government, political parties and powerful lobbying groups have suddenly “discovered” Africa, a continent it had apparently yielded until now to Europe, economically speaking.

But in today’s era of globalisation no market can be scorned, and the Clinton administration has decided to forge a path into Africa through an accord toward commercial opening with the countries of sub-Saharan Africa, designed to lead to a free trade treaty by the year 2020.

The initiative has captured the attention of Clinton’s Democratic party, the Republican opposition and a number of pressure groups, especially the Congressional Black Caucus.

In conversations with SELA officials, Newt Gingrich, the Speaker of the U.S. House of Representatives, indicated that the Law on Growth and Opportunities for Africa would be included in a broader package of trade initiatives.

Congress is thus reportedly negotiating a breaking down of barriers to fast-track authority and other questions of interest to Latin America and the Caribbean through the bill on Africa.

Fast track is one of the three projects of interest to the region, on which the long delayed opening of negotiations for Chile’s admission to the North American Free Trade Agreemeent (NAFTA) – Canada, Mexico and the United States – also depends.

Another point of interest is the renovation of the Generalised System of Preferences for the region, and proposals for the extension of some of NAFTA’s benefits to Central America and the Caribbean.

According to SELA, “there are signs that the differences” on such projects could begin to be resolved this week.

The new boost to the three initiatives of highest priority to the region is hence about to come, curiously, through Washington’s new emphasis on relations with Africa.

The report released by SELA – which gathers 27 Latin American and Caribbean countries – points out that trade proposals rarely move through the U.S. Congress on their own, because they would make easy targets for opponents. Like pioneers wending their way through the Wild West, they stick together in wagon trains, thus guaranteed the support of a larger number of groups.

The initiativeon Africa is not a “magic wand” that will wave away all opposition to fast track authority, but Gingrich said the Republicans have promised nearly 130 of their 227 votes, meaning Clinton will need backing from only 90 of the 206 Democrats.

The White House project for Africa stands a good chance of approval because sub-Saharan countries have made significant progress toward free trade and economic liberalisation, and will be further stimulated by promises of future cutting of tariffs and other benefits, which could include a partial cancellation of foreign debt for nations that agree to carry out reforms in the areas of trade and investment. The initiative would also propel the freeing up of trade among African countries.

Ironically, the Africa bill finds its antecedents in the Caribbean Basin Initiative and the Initiative of the Americas, promoted in the 1980s, and the FTAA project itself.

Analysts say Clinton is pinning his hopes for making history in the realm of trade – a common aim of U.S. presidents in their second and last term – on progress made toward the FTAA and projects such as the one on Africa.