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Assistant Administrator Adolfo Franco Addresses Caribbean-Central America Action Conference on Trade Capacity Building

USAID continues to forge a close relationship through trade capacity building with the "third border" countries of the Caribbean and Central America, Assistant Administrator Adolfo Franco told a major conference of Caribbean and Central American Action on Wednesday, December 7 in Miami.

He called on the audience to further advance the region’s momentum and progress toward trade, economic growth, and poverty reduction.

Assistant Administrator Adolfo Franco speaks at the Caribbean and Central 
                    American Action ConferenceIn order to be successful, Franco said, “All stakeholders must be involved: the private sector must invest to produce jobs that can efficiently compete in a global economy; the public sector must produce effective institutions that predictably operate under transparent ‘rule of law,’ and civil society must engage as true stakeholders to produce communities that provide the stable basis for investing today for prosperity tomorrow.”

According to Assistant Administrator Franco, trade capacity building is a top priority for the U.S. Government in the Latin American and Caribbean region.

“The U.S. sees trade capacity building as a means of promoting enhanced economic prosperity and security in Latin America and the Caribbean. USAID’s strategy for trade capacity building assistance entails three dimensions: preparing for trade negotiations, implementing trade agreement obligations, and transitioning to free trade.”

“USAID’s support for trade capacity building in each of these three capacity building areas dovetails nicely with this conference’s emphasis on the three challenges of producing well-paying jobs that compete in a global economy; producing effective institutions that operate predictably under ‘rule of law,’ and producing stable communities with participation of all stakeholders in civil society.”

Franco said that USAID has devoted significant resources that help countries transition to free trade and take advantage of new opportunities in global markets through programs in small business development, rural diversification, and competitiveness. He said this is increasing “well-paying jobs that efficiently compete in a global economy.”

In addition, USAID has provided assistance to help countries implement WTO obligations and other “trade rules” that are required by bilateral and regional agreements, such as DR-CAFTA or other agreements that are being negotiated, such as Panama or the Andean Free Trade Agreement, Franco said.

Franco noted that U.S. assistance for Caribbean Basin Initiative (CBI) beneficiary countries—24 countries with duty-free access to the U.S. market—is significant.

“In 2005, USAID contributed over $60 million in trade capacity building to CBI beneficiary countries. This support has been largely focused on those countries negotiating, preparing for, or implementing free trade agreements (FTAs) with the United States,” he said.

Franco mentioned the countries that are currently benefiting from the U.S. Government’s assistance in trade capacity building.

”In Central America and the Dominican Republic, trade capacity building assistance is being provided to the six countries that signed the U.S.-Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).” Franco said. “In Panama, USAID recently started a trade capacity building assistance program in support of the negotiation of the U.S.-Panama FTA.”

Additionally, “in support of the Free Trade Area of the Americas (FTAA), USAID provided TCB assistance to CARICOM countries, such as Guyana, Haiti, Jamaica, and several Eastern Caribbean countries,” he said.

The U.S Government has provided significant support for the smaller economies under CARICOM, the Caribbean Single Market and Economy, the Organization of Eastern Caribbean States (OECS), and the Free Trade Area of the Americas.

Under Administrator Andrew Natsios, USAID has also elevated public-private partnerships to a higher level in the context of our development work. We call this new way of doing business the Global Development Alliance. The GDA leverages resources between companies, non-profits, and government agencies to maximize the impact of aid in developing nations.

“USAID has worked on two different kinds of alliances with CCAA itself. The Alliance for CAFTAction is a project that is serving as a catalyst to articulate a shared vision between and among the business community, the public sector, and civil society on CAFTA,” explained Franco. “The second area of collaboration with CCAA is the Maritime Port Security Program for Haiti. The objective is to improve maritime port security with respect to compliance requirements of the International Maritime Organization’s International Ship & Port Facility Security Code in Haiti,” said Franco.

He concluded, “Let’s think of new ways of working together to create a ‘prosperous third border’—one that is fully integrated, competitive, and generates new opportunities and jobs.”

The three-day conference included leaders from the U.S. and most Caribbean basin countries, including Nicaragua President Enrique Bolaños, Honduras President Ricardo Maduro, El Salvador Vice President Ana Vilma Albanez de Escobar, Grenada Prime Minister Keith Mitchell, St. Lucia Prime Minister Kenny Anthony, and Dominica Prime Minister Roosevelt Skerrit.

Full-text of speech: Adolfo Franco, Assistant Administrator for Latin America and the Caribbean, at the Caribbean Central America Action 29th Annual Miami Conference on the Caribbean Basin, December 7, 2005.

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Mon, 19 Dec 2005 14:34:40 -0500
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