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Small Economies and the FTAA: The Search for a Level Playing Field Yet, consensus is still lacking over the best approach to integrating the small economies, mainly in the Caribbean and Central America, into the hemispheric and global trading system. The SEs have tended to emphasize what other countries can do for them—more resources from international financial institutions and 10-year extensions on non-reciprocal trade preferences, for example—instead of moving toward zero duties on imported goods. The developed countries (DCs) stress the need for the SEs to become competitive, attract investment and seek out and exploit comparative advantages. The DCs prefer to deal on a case-by-case basis that focuses on specific issues. The SEs, and the Caribbean countries in particular, feel uncertain and in need of more help in the face of global competition. Most of the SEs have not met their obligations under existing WTO agreements, for which the deadline was January 2000. For the moment, the priority of the DCs appears to be the provision of more technical assistance to help the SEs comply with their WTO obligations. Their hope is that such assistance will be followed by the adoption of a more vigorous trade discipline. Technical assistance programs are an important step toward this goal. According to a 1998 needs assessment of the region’s 15 small economies, six countries indicated that they would need some assistance in assessing their technical cooperation needs. Thirteen of the 15 expressed a need for human resources training. Of these, nine targeted general training of trade-related personnel and six expressed a need for training of negotiators. Some countries requested training in specific areas, such as standards or intellectual property rights. Two countries expressed interest in training of personnel in enforcement mechanisms, and 11 expressed a need for technical assistance in institutional reform. In the same study, nine of the region’s small economies targeted understanding and/or implementation of WTO commitments as areas of necessary technical assistance. Seven expressed a need for studies of the impact of free trade agreements on their economies or specific economic sectors, or requested training in conducting such studies. One country emphasized the need for technical assistance for small and medium-sized firms. Finally, the respondents identified information and communication equipment and infrastructure as a major area in need of assistance. Meanwhile, the FTAA Negotiating Groups continue to work on bracketed text for their respective chapters of the agreement Undoubtedly, the SEs will want to add their own bracketed text to many of these chapters. It is not clear what role, if any, the Consultative Group on Small Economies will play in resolving these issues. Issues relating to small economies are sure to be raised at the April meeting of the Trade Negotiating Committee (Vice Ministers of Trade) in Guatemala, but no change in the substance of the discussions is expected.
Department of State USTR WWW.FTAA-ALCA.ORG
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