Quest for the FTAA - Publisher's Note

South Florida CEO, Sept, 2002

The phrase "Gateway to the Americas" has become so commonplace when referring to South Florida in general -- and Miami in particular -- that most of us take it for granted. After all, we have the busiest airport for Latin American cargo and international passengers (beating JFK), we have the most significant port for sea cargo to the Americas, and we have the most significant banking, accounting and legal aggregation for the region.

Now a challenge comes our way for that title, and we must take action to defend our claim. The opportunity Miami has is to secure the permanent Secretariat for the Free Trade Areas of the Americas -- the FTAA. It is a mission that will take Olympian efforts but one which will greatly reward South Florida.

Making Miami the home of the FTAA Secretariat will make us the Brussels of the Americas. We will become the commercial focal point of two continents, the center of 880 million people with a GDP of $14 trillion. Trade negotiations for the region will be negotiated here. More consuls, lobbyists, bankers, lawyers, freight brokers, etc., will locate here. There will be more jobs, real estate sales, hotel occupancy, food sales and so on. Remember the federal statistic: Every billion dollars of trade in a non-manufacturing city creates 5,000 jobs.

With so much at stake, it's predictable that Miami is not alone in its quest for this role. Outside the US, Miami is competing against Panama City, Mexico City and, most recently, Port of Spain (Trinidad/Tobago). Each has its strengths, but each has gaping weaknesses relative to South Florida. Although Panama was once a strong banking center, for example, today it lacks the massive schedules our ports and airports maintain for connections to the world. Mexico City is a strong contender but is also weak in shipping connections to the Americas, Europe and the rest of the world. Obviously, Trinidad/Tobago lacks a massive infrastructure for trade development. No, these contenders can be dealt with. The greatest challenge comes from here in the states -- Atlanta.

This past summer, Atlanta filed its intent to secure the permanent home for the FTAA. In little over 10 days, the corporate community, led by Delta Airlines, Coca-Cola and other strong corporate supporters, raised $2 million and started a public relations campaign similar to their efforts to secure the Olympics. If you remember, Atlanta was quite successful in those efforts.

Can Atlanta succeed? It's possible, but not probable. Among other things, the 106th Congress unanimously passed a "Sense of Congress" endorsing Miami as the host city. And Atlanta does not come close to Miami in many critical areas, including language and culture.

But, Atlanta's entrance in the race can have a fatal effect. It can create a division in the US efforts to get the Secretariat, and shift the focus to Latin America. If another city wins the FTAA headquarters, the US is a big loser, but South Florida is an even bigger one. Just think of shifting the hubs for American Airlines, United Airlines or LanChile. What if Fedex or UPS moved its operations? The consequences are serious.

It's time for the leadership of Miami -- corporate and political -- to state our case. We must educate the community on the benefits of the FTAA Secretariat. We must inform our members of Congress -- and our local and state elected officials -- that they must support and promote this effort. Local economic development boards such as The Beacon Council and the Broward Alliance must further educate their members and encourage their support.

This is one of the most significant battles for South Florida as a business region, and one that we must not lose.

Richard Roffman

Publisher