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Commerce Secretary says region is ''primarily'' democratic, pro-trade

WASHINGTON, DC - 08/08/06 - Because Latin America is primarily democratic, the region tends to be "pro-market, pro-trade, pro-investment," and enjoys strong trade relations with the United States, says US Commerce Secretary Carlos Gutierrez.

Briefing reporters at the Foreign Press Center recently, Gutierrez described his recent visit to Peru, where he attended the inauguration of Peruvian President Alan Garcia, and offered his perspective on the US-Latin America trade agenda. 

On the economic front, "I believe that we are more aligned than ever before with Latin America at large," he said.

Gutierrez told reporters that the region recognizes the need to reinforce the rule of law, and increasingly is committed to transparency in regulations and government actions.

Adherence to those concepts, he added, will enhance Latin America's investment climate, and the region generally has embraced them.

The US "remains actively engaged with its neighbors in pursuit of trade agreements, both bilateral and multilateral, that will benefit the region as a whole," said Gutierrez.

He said US Trade Representative Susan Schwab recently returned from Brazil, after consulting with Brazilian trade experts about reviving World Trade Organization talks.

US officials also are holding ongoing discussions with their counterparts in Panama to achieve a bilateral free-trade agreement, he said.

The US has already established a trade agreement with Chile, "and it is doing exceptionally well," Gutierrez observed, adding "we've just negotiated a free-trade agreement with Peru, and we believe that that will do extremely well."  

It is no coincidence that these countries have democratically elected governments and as such, "they believe in trade; they believe in investment; they believe in free enterprise," he said.

By the same token, he said, "we do $39 billion of two-way trade with Brazil, and we believe we can do a lot more."

Asked whether the US is concerned about a shift towards left-of-center policies in some parts of Latin America, Gutierrez said: "By and large, there may be tactical differences here and there, ... but fundamentally I believe that we have ... alignment" on the most important issues. 

Overall, there is a broad consensus on the necessary foundation for long-term prosperity: "It's democracy; it's trade; it's business, investment, social justice," he said.  "Those are the fundamental aspects that really count, and that's where we have great, great consistency with the beliefs in Latin America today."

Gutierrez' optimism about the region has been blunted somewhat with the recent assession of Venezuela to the Mercosur economic bloc.

Venezuela, led by the virulently anti-US Hugo Chavez, is South Ameica's third-ranking economy after Brazil and Argentina.

Taking advantage of the opportunity, Chavez immediately urged Mercosur to put aside internal squabbles and "stand against" the US-backed free-market policies that he told the media "have enslaved the region in debt to the International Monetary Fund."

Latin America, he said, "has all it needs to become a great world power. Let's not put any limits on our dreams. Let's make them reality," the Venezuelan leader declared.

The addition of Venezuela gives Mercosur a combined market of 250 million people and a combined output of $1 trillion in goods and services annually.

By comparison, NAFTA combines the markets of the US, Canada and Mexico, into a bloc that has 450 million consumers and a combined gross product of about $14 trillion.

Once confined to the Southern Cone nations of Brazil, Argentina, Paraguay, and Uruguay, Mercosur now ranges north to Venezuela's Caribbean coast.

The action also spelled the death-knell of any plans to revive the proposed Free Trade of the Americas, that was effectively blocked by Venezuela and the Mercosur nations last year.

The Mercosur leaders also concluded a deal to foster greater trade with Cuba aimed at fostering an increased exchange of goods between the Mercosur bloc and Cuba through tariff reductions and a promise that neither side will arbitrarily hike import fees or taxes.

Gutierrez fielded questions about the current situation in Cuba, where 79-year-old dictator Fidel Castro is, according to some sources, slowly recovering from surgery to correct an intestinal problem after temporarily transferring power to his brother Raul. 

With the news of Castro's incapacitation, there has been intense global speculation about whether his communist regime is likely to fall.  "At a time of great uncertainty, we want to let the people of Cuba know that we affirm our commitment" to help ease their country's transition to democracy, said Gutierrez. 

The Cuban-born commerce secretary reiterated President Bush's recently-stated promise to extend generous aid to Cuba if the Cuban people request US help in achieving political and economic freedom. 

"We pledge to extend a hand of friendship and support as they build a democratic government, a strong economy and a brighter tomorrow for their families and for their country," he said.

Gutierrez and US Secretary of State Condoleezza Rice are co-chairs of the Commission for Assistance to a Free Cuba (CAFC), which was launched by the Bush Administration and authorized by the president to draw up plans for facilitating Cuba's eventual transition to democracy. 

The CAFC issued its second report in July, emphasizing the US' willingness to provide substantial material resources and expertise, should Cubans need help in organizing free, fair, multi-party elections that would establish democratic governance on the island.

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