Latinos Hope for Free Trade

By Maria Armental, Daily Record

As the United States wrapped up the first round of trade negotiations last week with Colombia, Ecuador, and Peru, some of Morris County's Hispanic residents are hopeful that the talks will lead to job growth and greater markets for Latin-American goods.

Signing a free trade agreement with the United States would guarantee "the access (of products) from our countries without any external barriers," said Beatriz Villada, a past president of Dover's Club Colombia.

"To enter one of the greatest markets in the world is a great step for Colombia."

Trade liberalization, Villada said, also could benefit consumers by bringing prices down.

Representatives from the United States and the three Andean countries met in Cartagena, Colombia, May 18-19, to discuss trade liberalization. It was the first of eight rounds of negotiations in an effort to reach a free trade agreement. The next round will be held June 14-18 in Atlanta.

The United States is expected to begin negotiations with Bolivia at a later time.

"This is a good starting point," said Dover Mayor Javier Marin, executive director of Unimundo Remittance Inc., a money-wiring company that does business with several Latin-American countries and Spain.

Marin said the agreement could generate considerable job growth in all the nations and result in greater trade relations.

"There is no question in my mind that it's going to be beneficial to everybody," Marin said.

Officials originally identified 23 issues to discuss during the first round of talks. Among the most controversial are intellectual property rights and market access. Negotiations are expected to conclude by early next year.

Plácido A. Batista, owner of Global Touch, a retailer and distributor of tile based in Dover, said the trade negotiations also could encourage private investors to do business with Latin America.

"There are many riches in our countries," said Batista, former director of international trade of the Morris County Hispanic Chamber of Commerce. "What's lacking is the trust.

"The opportunity is there. We just need the bridge," he added.


Trade agreement

The United States already has a trade agreement with Colombia, Ecuador, Peru and Bolivia. The Andean Trade Preferences and Drug Eradication Act, adopted in 2002, gives preferential treatment to products originating in any of the four Andean nations in an effort to fight the drug trade in that area, and aims at "promoting export diversification and broad-based economic development." That agreement is set to expire in 2006.

Since the first trade agreement with the region -- including Bolivia -- was signed in 1991, two-way trade between the United States and the Andean countries has more than doubled, according to the U.S. Department of State.

The latest negotiations, aimed at making those preferences permanent, however, have sparked some controversy over possible job losses or U.S. products flooding the Latin-American market.

But Colombian President Álvaro Uribe insisted that a free trade deal would create more jobs and opportunities for the Andean region.

"If we continue with political speeches and do not search for mechanisms that lead to economic growth, we'll keep filling the workers' pockets with misery," Uribe said ahead of the talks.


Local residents agree.

"In any negotiation, there is going to be risk," Villada said. "But in general, I think it's going to be good business for both countries."

"Basically, you have to put everything in balance and see what's (best) for the country."

The added competition could result in higher quality products and improved services, said Consuelo Arcila, a Colombian artisan trying to find a market in the United States for her handmade, glued fabric figurines.

It's logical that American products will enter the Colombian market, Arcila said. That growing competition would challenge individual producers and strengthen the Colombian government's support for local industry, she said.

"It's the small companies that move the country," Arcila said, adding that a carefully crafted trade pact would give small businesses the added push they need to compete abroad.


Latest negotiations

The trade talks with Colombia, Ecuador, and Peru are the latest negotiations undertaken by the Office of the U.S. Trade Representative in Latin America since Congress gave President Bush trade promotion authority in August 2002. Under trade promotion authority, or "fast track," Congress can only give a yes or no vote. It cannot amend the agreement.

The United States' ultimate goal is to negotiate a free trade agreement -- the Free Trade Area of the Americas -- that would extend from Canada to Argentina.

The United States already has negotiated a free trade agreement with Chile, which went into effect on Jan. 1, and the Central American Free Trade Agreement (CAFTA) with Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, which will be signed on May 28.

In addition, the United States finished negotiations with the Dominican Republic, which will be incorporated into CAFTA following a period of congressional consultation, and has begun negotiations with Panama.

"Everything has to be done in stages," Marin said, noting that an agreement of the Americas would be most beneficial. "I think we are moving in the right direction."

"The effects, however, won't be seen in a year," Arcila said. "It'll be a few years before we can see the real impact."