The Miami Herald

December 9, 2002

Free trade will enhance economy, freedoms
By GRANT ALDONAS

For 200 years, trade has been an economic engine helping the United States meet the needs of domestic businesses, workers and consumers. Throughout history, we pursued new markets for American goods, services, and technology; sought the import of a greater variety of goods at lower prices; and encouraged competition and a free market economy.

Our efforts have proved fruitful -- leading to sustained economic growth, higher wages, more jobs and a higher standard of living. Over the past three decades, trade has served as the engine of more than one-quarter of domestic economic growth. Some 12 million American jobs -- one in 10 -- depend on exports, and those jobs pay wages that are as much as 18 percent higher than the national average. Unfortunately, many of our neighbors have not been as fortunate.

Despite the benefits of a free market and trade, much of the the Americas has experienced slow progress. Many in the region feel left behind or simply left out. In fact, one-third of the population lives in poverty, and 170 million people survive on less than $2 a day. If current trends continue, in 25 years the population of Western Hemisphere nations will surpass 700 million; yet it is estimated that more than 200 million of those individuals will be poor.

To be serious about fighting poverty, we must be serious about expanding trade -- and about making sure that the new round of global talks and trade commitments live up to their intentions. The United States must ensure that the seeds of global integration find fertile soil and that the benefits of trade and global commerce are broadly shared. President Bush is deeply committed to this mission, particularly with regard to the countries of Latin America.

In 1994, nations of the Western Hemisphere met in Miami and resolved that the Americas are to be guided by the principles of democracy, that sovereignty resides in the people, that basic human rights are to be enjoyed by all, that economic freedom can lift millions out of poverty, and that political and economic freedoms are the instruments of lasting peace. We resolved to work together to put these principles into practice.

I recently visited Miami to reaffirm these commitments. I spoke with Caribbean Latin American Action, an organization promoting private-sector-led economic development in the Caribbean Basin and throughout the hemisphere. We all are committed to breaking down trade barriers and knitting our hemisphere into a region-wide zone of economic opportunity for all.

The United States must be a major contributor to the growth and prosperity of our neighbors. Programs such as the Caribbean Basin Economic Recovery Act, the Andean Trade Promotion and Drug Eradication Act, and the ''Third Border Initiative'' derive directly from this sense of regional responsibility. The administration is also aggressively pursuing regional initiatives that will expand trade and economic growth, including the U.S.-Chile Free Trade Agreement, the U.S.-Mexico Partnership for Prosperity, and discussions toward a U.S.-Central American Free Trade Agreement.

The cornerstone of Bush's Latin American trade policy agenda is the creation of a Free Trade Area of the Americas. The FTAA will be the largest free market in the world, stretching from Canada to Chile, representing more than 800 million people and a combined GDP of more than $13 trillion. Not only will the FTAA promote economic development and democratic governance among our trading partners; it also will strengthen our economy at home -- benefiting American farmers, businesses, workers and consumers.

Furthermore, the United States pledges to assist our neighbors as they prepare their laws and infrastructure for participation in the global economy. We will work to ensure that countries have a functioning legal system, with laws to protect the basic rights of companies and people who want to engage in trade. For some countries, it could be a long journey before reaching this point, but the United States intends to walk this path with them.

As friends and neighbors, the United States and other hemisphere nations are necessarily linked. Development in one nation has a profound impact on the others, and as such, the United States wants every nation to take advantage of trade.

More important, however, nations that exhibit a commitment to trade and to having the necessary infrastructure will achieve results greater than an increasing balance of trade. With a firm embrace of democracy and good government, each will have enabled its citizens to live in a more-prosperous and freer society.

Grant Aldonas is undersecretary for international trade at the Department of Commerce.