Postcard from Chile

This week’s visit of Chilean President, Dr Ricardo Lagos Escobar, should be viewed both in the context of greater south-south trading arrangements and economic cooperation and that of a significant thumbs up sign by Chile to Trinidad and Tobago’s quest to be the headquarters of the Free Trade Area of the Americas (FTAA). Chile is one of the several Latin American countries, along with the Caribbean community of nations of which Trinidad and Tobago is a founding member, which has indicated support for this country’s FTAA bid. Already, Trinidad and Tobago is the headquarters of the Association of Caribbean States (ACS), with the earlier support of both Caricom and Latin American states, and having the FTAA Secretariat here undoubtedly would strengthen the development of intra-regional trade, economic and social ties.

A crucial factor in all of this is that this country’s nearest rival in the FTAA headquarters bid is Miami, Florida, United States, and therefore implicit in the support of the several Spanish, English and Dutch speaking Caribbean and Latin American nations for Trinidad and Tobago is the inferred shift from once unquestioned north-south domination to that of increasing south-south cooperation. What is interesting is that only one of the Caribbean Sea principals — the Dominican Republic (DR) — has broken ranks on the issue of unified Caribbean support for Trinidad and Tobago’s FTAA bid.  This, unfortunately, appears to have been dictated by the Dominican Republic’s volume of trade with Miami and its reluctance to do anything which could possibly jeopardise this.

All of the other relevant principals, with the exception of Cuba which in any event is not part of the FTAA initiative, have signified support for this country. Chile recognises, as does this country and the rest of Caricom, that the Free Trade Area of the Americas, when it is established, would not be a tea and cakes party, but instead would see a determined move by the United States of America to dominate trade within the FTAA and swamp the area with US produced goods and/or goods produced by US companies/investors operating in Mexico and a few other Central American countries. It is in the interest of Chile, as well as other like-minded Latin American states and Caricom to seek the hammering out of clauses in the FTAA agreement which would protect the interests of the less developed countries in the Free Trade Area for a specified  period.