The Americas Business Forum: a stop on the road toward hemispheric commercial integration

Business America, August, 1996 by Mercedes Fitchett, Kristine Bretl

The Americas Business Forum and Trade Ministerial, March 18-21, 1996, in Cartagena, Colombia, were important milestones on the path to economic integration and free trade in the Western Hemisphere. Approximately 200 senior-level U.S. business leaders, led by the late Secretary of Commerce Ronald Brown, joined 1,300 hemispheric business colleagues to develop and present recommendations to the region's Trade Ministers for their consideration in negotiating commercial integration and the Free Trade Area of the Americas (FTAA). The Business Forum, which immediately preceded the Trade Ministerial, was a follow-up to last July's Western Hemisphere Trade and Commerce Forum and Trade Ministerial in Denver and the December 1994 Summit of the Americas in Miami.

Private Sector Key to Constructing the Free Trade Area of the Americas

The Forum process recognizes the private sector's critical role in integrating the Hemisphere. Day-by-day, deal-by-deal, the region's industries have long been in the process of advancing hemispheric commercial integration. The private sector is uniquely positioned to work with governments to make progress now, in advance of formal trade negotiations, by identifying practical solutions to commercial barriers. More importantly, their activity increases trade and brings countries closer together, even as formal negotiations proceed.

Forum Industries and Issues

Forum participants developed and presented recommendations to governments in 13 areas of sectoral and functional interest ranging from customs, rules of origin and market access, to intellectual property rights, investment, telecommunications, energy, transportation and services. An overarching theme emanating from business leaders was the value they place on being part of the negotiating progress through events like the Forum, and the need to establish a formal mechanism, both domestically and hemisphere-wide, through which their advice can be transmitted directly to government negotiators.

The Trade Ministerial

Immediately after the Business Forum, the region's 34 Trade Ministers met for the third Trade Ministerial meeting. Key developments emanating from the Ministerial include:

* Private sector representatives were assured of a continued key role in the FTAA's formation through Ministerial agreement to keep the private sector Forums and Summit Ministerials linked in Belo Horizonte, Brazil (1997) and Costa Rica (1998).

* Finally, Trade Ministers agreed to consider recommendations at Belo Horizonte, on when and how to launch formal FTAA negotiations.

Next Steps

The Government of Brazil and private sector coordinators are already engaged in preparations for the third Americas Business Forum and Trade Ministerial which will take place in Belo Horizonte, Brazil, in May 1997. The Department of Commerce and other organizations will work closely with the U.S. business community to ensure their strong participation at the Forum and keep them apprised of further FTAA developments.

For More Information

Summaries of workshop recommendations and Trade Ministerial declarations may be accessed through the International Trade Administration's web site at http://www.ita.doc.gov. Additional Forum and FTAA-related materials may be obtained via the Organization of American States Foreign Trade Information System - SICE homepage at http://www.sice.oas.org and the Business Network for Hemispheric Integration (BNHI) at http://www.tuanis.com/empresas/reih/reih.htm.>

COPYRIGHT 1996 U.S. Government Printing Office

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