 |
|
|
|
|
 |
- 06/18/08: Briefing by USAID Administrator and Director of U.S. Foreign Assistance Henrietta H. Fore and U.S. Ambassador to Afghanistan William Wood - "The International Conference in Support of Afghanistan"
- 05/17/08: Remarks by Henrietta H. Fore, USAID Administrator and Director of Foreign Assistance at Ukaj Wood Processing Plant, Lipjan, Kosovo - "Small Business Owners Reception"
- 05/17/08: Remarks by Henrietta H. Fore, USAID Administrator and Director of Foreign Assistance at Las Pallmas Greenhouse, Lipjan, Kosovo - "Kosovo Cluster Business Support Project Dedication Ceremony"
- 05/17/08: Fulbright Signing Ceremony, Pristina, Kosovo
- 05/16/08: Press Conference with Fatmir Sejdiu, President of Kosovo, and Henrietta H. Fore, USAID Administrator and Director of Foreign Assistance, Pristina, Kosovo
 RSS Feed for Recent USAID Speeches and Testimony
|
|
|
|
|
|
|
|
|
|
|
Remarks by Adolfo A. Franco,
Assistant Administrator, Latin America and the Caribbean
Producing Prosperity on the Third Border: Mobilizing Public-Private Cooperation for Trade-Led Development
December 7, 2005
Caribbean-Central America Action Conference
Miami, Florida
Good afternoon, ladies and gentleman:
I am pleased to be here to share with you how the U.S. Agency for International Development helps build trade capacity throughout Latin America and the Caribbean both through USAID’s own work and in collaboration with our private sector partners.
I. From DR-CAFTA Toward a “Prosperous Third Border”
To begin, I would like to take a closer look at the theme of this conference: “a prosperous third border,” this third border being comprised of the small economies of the Caribbean and Central America – the “Caribbean Basin Initiative” beneficiaries. In these countries, the domestic markets are often limited, the population size is small, and GDP per capita is limited. At the same time, these economies are highly dependent upon trade yet insufficiently integrated regionally. To survive, these countries must trade to help ensure that the region prospers. The region must sustain and gain momentum on its ongoing efforts toward regional integration and strengthened competitiveness.
As the theme of this conference suggests, it’s time to “act” in a way that advances the region’s momentum and progress toward trade, economic growth, and poverty reduction. Put most simply, as the conference theme highlights, the region must PRODUCE to PROSPER. For this to succeed, 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.
DR-CAFTA has established a new standard for what action means and its signatories are setting an agenda for the actions necessary to prosper. Even before the agreement has gone into force, the DR-CAFTA trade capacity building (or TCB) process, in which USAID is a leader, has witnessed significant efforts on the part of multiple TCB stakeholders to put in place the foundations for these three pillars of action through a dynamic public-private collaboration. DR-CAFTA grew out of a special relationship with the “third border” and in turn it will generate real momentum for enabling other countries in the group to make the “third border” vision a reality.
II. Trade in Latin America: The Present Situation
There has been a significant movement toward free trade in Latin America over the past decade. Beyond NAFTA and the Chile FTA coming into force, and ongoing efforts to negotiate the Free Trade Area of the Americas, by early 2004, the U.S. had completed a bilateral FTA with five Central American countries – Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, with the Dominican Republic subsequently joining this partnership. Further, in 2004, significant progress was made on building the hemispheric “trade corridor” as the U.S. began negotiating FTAs with Panama and the Andean countries of Colombia, Ecuador, and Peru.
Throughout this whole period a vital element in U.S. economic relations with its neighbors in Central America and the Caribbean has been the Caribbean Basin Initiative (CBI). The CBI currently provides 24 beneficiary countries with duty-free access to the U.S. market for most goods. The CBI includes a broad array of countries from Costa Rica, Dominican Republic, Guatemala, Honduras, and Nicaragua to the small island economies of Barbados, St. Kitts and Nevis, and Trinidad and Tobago.
At the regional level, the 15 countries comprising CARICOM have been working to implement the CARICOM Single Market and Economy (CSME). The end goal of the CSME is the regional integration of the markets for goods, services, and factors of production (including labor). CARICOM expects to start fully implementing the provisions relating to the single market in 2006 and to attain the goal of an economic union in 2008.
III. USAID TCB Assistance Efforts for “Third Border” Countries
Now let me discuss in greater detail the topic of trade capacity building assistance. Trade capacity building is a top priority for the U.S. Government in the Latin American and Caribbean region because the U.S. sees TCB 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 support for trade capacity building in each of these three TCB 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.
USAID programs in trade capacity building are assisting on these three fronts in the following ways:
- In the first area, “producing well-paying jobs that efficiently compete in a global economy,” USAID has devoted significant resources for helping countries transition to free trade and take advantage of new opportunities in global markets through programs in small business development, rural diversification, and competitiveness.
- In the second area, “producing effective institutions that predictably operate under a transparent ‘rule of law’,” 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.
- Finally, in the third area, “producing stable communities that confidently offer reasonable hope for a better life to future generations,” USAID has provided substantial assistance in the area of civil society outreach, education and information dissemination on the benefits of free trade, and in the broader area of democratic governance.
I would specifically like to highlight USAID assistance to the Third Border countries of the Caribbean and Central America. U.S. assistance for CBI beneficiary countries 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.
- In Central America and the Dominican Republic, TCB assistance is being provided to the six countries that signed the U.S.-Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).
- In Panama, USAID recently started a TCB assistance program in support of the negotiation of the U.S.-Panama FTA.
- 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.
We have 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. A first example of the assistance to smaller economies is support to the CARICOM Regional Legislative Drafting Facility that enables the establishment of a Caribbean Single Market and Economy. Rapid progress has been made in research and drafting several pieces of legislation, such as the Harmonized Customs Bill and Regulations. Laws that relate to the movement of goods, services, labor, and the rights of establishment will also be addressed. These laws are critical for supporting increased business opportunities and ultimately trade throughout the region.
Another example is USAID support to countries in the Organization of Eastern Caribbean Countries (OECS). USAID has provided support in several areas. The Caribbean Open Trade Support (COTS) project helps enhance national level competitiveness in OECS countries by reducing impediments to trade, improving market access conditions, and working with the government and the private sector. The Caribbean Regional Technical Assistance (CARTAC) project also supports OECS countries to remove trade-related taxes on goods and services, replace them with value-added taxes, and improve the efficiency in the collections of customs data relating to trade within the OECS region.
IV. Mobilizing the Private Sector for Trade in the Region
Now let me turn to a prime topic for this conference—that of the great challenge and even greater opportunities for the public and private sectors to partner for progress. Present in this room is an impressive group of leaders from both the public and private sectors - from Prime Ministers to Presidents to CEOs of multinational companies to business leaders from throughout the Caribbean and Central America. The CCAA forum is an excellent opportunity for the public sector, the business community, and civil society to engage in dialogue and stimulate momentum on key issues affecting the region. We need to find innovative ways of collaborating with and complementing one another in support of free trade.
My personal observation is that governments can help create an enabling environment for more liberalized trade and attractive foreign investment; however, it is the private sector that is the engine of growth. Free trade agreements are bridges built by the public sector but it is up to the private sector to cross those bridges and take advantage of the opportunities on the other side. Under our Administrator, Andrew Natsios, USAID has 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-for-profits, and government agencies to maximize the impact of aid in developing nations.
We have 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. The Alliance will also raise standards through the harmonization of best business practices; create a regional network of key individuals from the business community and civil society; and conduct workforce briefings to educate workers at member companies about the opportunities afforded by CAFTA.
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. Working in consultation with the public and private sectors in Haiti and the United States, including the Florida Ports Council, CCAA is helping to mobilize business community leaders to take a more visible role in supporting maritime security efforts through the development of the Maritime Security Alliance for Haiti.
V. Conclusion
Finally, in conclusion, I would like to note that partnerships with the private sector can take on many forms – public-private partnerships to stimulate dialogue; partnerships to leverage resources amongst governmental, non-governmental and private entities; and partnerships between countries and segments of society. I call on all of you here in the room to consider innovative ways of collaborating with one another. This forum is an excellent opportunity to network amongst one another and develop creative solutions to sustain and accelerate the momentum for trade and investment to be the dual engines for the region’s development. Let’s think of new ways of working together to create a “prosperous third border” – one that is fully integrated, competitive, and generating new opportunities and jobs.
Back to Top ^
|
