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Today, Miami hosts a symbolic milestone in the quest for a hemispheric free-trade zone and a practical step forward for commerce between nations. Chile and the United States will sign a bilateral-trade agreement, a pact between two of the hemisphere's strongest economies and democracies.

That it is happening in Miami is a source of civic pride and celebration, implicitly recognizing this city as the crossroads between North and South.

That this trade pact is the culmination of nearly a decade of negotiations is an indication of how difficult these negotiations can be. We celebrate the determination and good faith of both sides and urge Congress to approve the US-Chile Free Trade Agreement without delay.

The agreement will lift tariffs on more than 85% of goods from both countries in the first year and most of the remaining tariffs within four years.

Though the United States is Chile's biggest single-country export market, the size of Chile's exports remains small relative to the massive US economy. That means that benefits will be felt more in certain sectors, rather than overall. Miami, for example, is poised to reap rewards as an entry port for Chilean goods via air carrier Lan Chile's $55 million cargo facility.

US Trade Representative Robert B. Zoellick, who will be signing for the United States, lauded the pact when negotiations were finalized in December. "It's a win-win, state-of-the-art [free-trade agreement] for the modern economy," he said. "The US -Chile FTA really is a partnership for growth."

Exactly how this agreement will impact progress toward the 34-nation Free Trade Area of the Americas is difficult to say. International politics will play a role, of course. So will mutual respect.

The economic consequences of action or inaction are potentially enormous. For some countries, the right agreement could significantly improve conditions of their people, and the wrong moves could have disastrous consequences.

Size, in this case, does matter.

A ruined economy that puts people out of work doesn't care that it's an island nation, or the size of Brazil. A successful pact that leads to more trade and more jobs is good for, say, Barbados, on the small side, as much as it is for a big country like Mexico.

So it's essential that nations, large and small, approach the negotiations in an atmosphere of mutual respect. The Chile-US pact is a model of that.

Singling Chile out for trade preferences rewards that country for its sound economic and social reforms. Though Chile's economy has suffered from the worldwide post-9/11 slump, it remains one of the best-managed and, according to Transparency International, has the least corruption in the region, second only to the United States. It has enacted labor protections, dramatically reduced poverty and sustains a stable democracy with strong institutions.

The US agreement with Chile appropriately should send a message to other South American countries that want access to the rich US market: Good governance, clean business practices and open markets will pay off.

Regular readers of this space already know that Miami stands to benefit from anything that leads to a successful negotiation of a larger, hemispheric Free Trade Area of the Americas. The idea of Miami as the site of such an international enterprise should be a top priority of every governmental and business plan in South Florida.

We will have more to say as the months pass between now and Florida's hosting of the next meeting of trade ministers, scheduled for November in Miami. For now, it is enough to note the symbolism of Miami as the site of the ceremonial signing of an international agreement that should be a major step toward the creation of a full and free trade area of the Americas.

Go back, or read the latest opinions:

''On the Waterfront – Still''

John Fund, Wall Street Journal, 09/17/06