Differences in levels of development and size of economies
14. We acknowledge the differences in the levels of development and size of economies in the hemisphere and the importance of all the countries participating in the FTAA to attain economic growth, improved quality of life for their people, and balanced and sustained social and economic development for all its participants. We therefore reaffirm our commitment to take into account in designing the FTAA, the differences in levels of development and size of economies in the hemisphere to create opportunities for their full participation and increase their level of development. We will establish mechanisms that complement and enhance the measures that address differences in the level of development and size of economies, in particular smaller economies, in order to facilitate the implementation of the Agreement and to maximize the benefits that can be derived from the FTAA. Such measures shall include but not be limited to technical assistance and transitional measures including longer adjustment periods.
15. We take note of the TNC Report on the results of the progress achieved in relation to the treatment of differences in the levels of development and the size of economies in each of the Negotiating Groups, and we instruct these entities to continue their work on this issue. We have made this report available to the public on the official FTAA website. We note with concern that while text negotiations have progressed, proposals aimed at giving expression to treatment of the differences in levels of development and size of economies are bracketed across all the negotiating disciplines. We therefore reiterate our instruction to the TNC and to all the negotiating groups, in particular those undertaking market access negotiations, to translate this principle into specific measures so that they are reflected in the results of the negotiations. We instruct the Consultative Group on Smaller Economies (CGSE) to keep this report up to date, with the support of the Tripartite Committee, and to submit it to us at our next meeting.
16. With a view to providing appropriate follow-up of the activities underway within the CGSE and in order to achieve the full participation of all countries in the FTAA, we instruct the CGSE to make recommendations to the TNC, at its next meeting and in coordination with the TCI, on the characteristics of a Permanent Committee on the application of the treatment of differences in the level of development and size of economies so that it forms part of the institutional framework of the FTAA.
Hemispheric Cooperation Program
17. We recognize that trade can play a major role in the promotion of economic development and the reduction of poverty. Therefore, we underscore that the commitment of countries to integrate trade into their national development plans, such as Poverty Reduction Strategies, is central to ensuring the role of trade in development and securing increased trade-related assistance in the region.
18. We recognize that smaller and less developed economies will require financial support to assist in the process of adjustment resulting from hemispheric integration. We therefore instruct the CGSE, based on its current work on the subject and with the support of the Tripartite Committee, to present recommendations to the TNC at its eighteenth meeting on financing methods and facilities to address the adjustment needs resulting from the differences in the levels of development and size of the economies of the hemisphere.
19. We welcome the efforts of the CGSE, with the assistance of the Tripartite Committee, to implement the Hemispheric Cooperation Program (HCP). Important steps took place at the Washington, D.C. meeting on October 14 and 15, hosted by the Inter-American Development Bank (IDB), with relevant donor institutions and in the preparation of trade capacity building strategies (TCB) by governments, which were the focus of discussion at the donors’ roundtable. These strategies are critical to identifying effective programs and appropriate funding sources. These steps constitute a beginning to the process of enhancing the capacity of the countries that are seeking assistance to complete negotiation of the FTAA Agreement, prepare to implement its terms, and to enhance their capacity to trade, and successfully adapt to integration.
20. Based on the discussions and the TNC Report on progress in the implementation of the HCP and the initial meeting with donors, we encourage the countries with the help of the Tripartite Committee to finalize the TCB strategies as appropriate and to organize sub-regional meetings with donors to continue discussions on the TCB strategies. The first sub-regional meetings with donors should be held within four to six months.
21. We reiterate our agreement at Quito that the HCP will respond to the immediate assistance needs for the purpose of strengthening the participation of countries in the negotiations. We note with concern the slow progress in addressing these immediate needs and call on the donor community to urgently provide predictable and multifaceted financial and non-financial support, in particular non-reimbursable financing, for meeting the objectives and capacity-building priorities set out in the national and sub-regional capacity building strategies and action plans under the HCP. In this connection, we welcome the contributions, including non-reimbursable financing, already made.
22. We also instruct the TNC with the support of the CGSE to further develop the HCP by identifying the modalities and procedures for the management and implementation of the HCP once the FTAA negotiations are completed. We instruct the CGSE to report to the TNC throughout the year on progress under the HCP. We have made the TNC Report on the Implementation of the HCP available to the public on the official FTAA website.