Posted May 1st. 2001

Mr Chairman, Colleague Heads of State and Government:

First of all, I would like to endorse the sentiments expressed by the speakers before me and therefore I would not want to repeat the views which they have conveyed.

It is my view that there are certain issues which must be addressed if we are to have a successful Free Trade Area of the Americas.

I believe in the benefits of free trade, however if we are all so sure about eventual prosperity why is there so much apprehension? This is because systems are changing for some of us, preferential markets are being lost and we still do not know what will replace them.

Some small industries will be wiped out and while we are being told to diversify, when the question is posed as to how such diversification could be achieved or implemented there is a deafening silence.

I am not convinced that the Plan of Action nor any declarative statements would change that apprehension. It is easy to make statements but our commitment and resolve towards this process will be tested. The test will come when we return to our capital cities and we encounter lobbying by various groups with narrow or partisan interests to stall the FTAA process. The instructions given to our negotiators must pay heed to the fact that we are not a homogenous group of countries and therefore if we want the process to succeed we have to overcome the differences that exist.

It is no secret that reducing tariff barriers alone would not lead to a level playing field. In many developing countries the financial system is shallow and the cost of doing business is high. Small economies are unable to capitalise on economies of scale. We need therefore a free trade area which would take into account the concerns of these small economies. It is in this regard that I wholeheartedly support the call made by Prime Minister Patterson of Jamaica for us to commit now to the creation of a Regional Integration Fund to allow these economies to compete effectively in the process. This is an initiative which Guyana and CARICOM have been pressing for in all of the negotiations. Are we prepared however at this Summit to commit to this in our Plan of Action?

Such a commitment would give the countries of CARICOM more comfort in terms of the hemisphere's efforts towards creating prosperity.

With regard to connecting the Americas, we need the support of our regional institutions in this process. These institutions would however have to undergo changes in their operational procedures so that they could develop the capacity to deliver on requests made by countries of the hemisphere for assistance in the development of information technology.