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Home / Business

Real progress but now Bush has to deliver

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·
23 Apr, 2001 10:31 AM3 mins to read

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By FRAN O'SULLIVAN

QUEBEC CITY - It was Jean Chretien's show, but United States President George Bush was the star performer.

The free trade performance will go nowhere unless Mr Bush can get Congress to play to his script and give him fast-track negotiating authority to do big-time trade deals.

That
was the upshot of the Summit of the Americas in Quebec City. This western hemispheric trade meeting ended with 34 leaders unveiling a multibillion-dollar action to put some grunt behind the lofty phrases of free trade and economic development.

Summit leaders yesterday put their signatures to an agreement requiring them to open their markets by December 2005 - with the proviso that only democratic governments can join up with the Free Trade Area of the Americas.

The leaders declared democracy "fundamental to the advancement of all our objectives," but their written agreement stopped short of setting down specific penalties, or even establishing automatic expulsion if a military coup occurs.

To make the Free Trade Area of the Americas fly, the Bush Administration must now secure trade promotion authority (TPA) - formerly called "fast track" - from Congress.

Putting his Administration's negotiating credibility on the line, Mr Bush left Quebec City pledging to get Congressional approval for the restoration of TPA this year.

Unless he can tuck the TPA under his arm, he cannot guarantee western hemispheric leaders that the measure will pass through Congress without amendment.

Unlike the previous two summits, the leaders backed their lofty ideals with an action agenda. The World Bank and Inter-American Development Bank stumped up $US35 billion ($86 billion) to back the leaders' push for on-the-ground democracy.

After seven years of negotiating, they also agreed to publish the draft of the final agreement so organised labour and other protesters could view it.

"We will spare no effort to free our fellow citizens from the dehumanising conditions of poverty," the leaders noted in a signed declaration. Canadian Premier Jean Chretien added: "They must have equal access to health care, with the ability to use information and communication technologies."

The $US35 billion would be used to back the leaders' calls.

Anti-globalisation demonstrators swarmed into Quebec for the three-day summit. But Mr Bush had his own message: Change always makes some people nervous.



The treaty would create a barrier-free trade zone from the Arctic to Argentina, linking markets of 800 million people and economies ranging from the world's largest - the United States - to some of its tiniest.

Mindful of the inequalities of the region, the leaders were committed to halving the number of people living in extreme poverty by 2015.

Other goals announced included:

* The Inter-American Development Bank will give $US40 billion over five years to support initiatives relating to Hiv-Aids, literacy, education and reducing poverty

* A commitment to maintaining peace and security and a pledge to fight the world drug problem and related crimes.

* The pursuit of renewable energy initiatives.

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