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World Bank Hails The Americas' Free Trade Initiative,
by Mike Godfrey, Tax-News.com, Washington
Monday, October 13, 2008
The World Bank and Inter-American Development Bank (IDB) has welcomed an initiative
launched by 12 countries in the Americas to promote free trade in the Western
Hemisphere.
The “Pathways to Prosperity Initiative” was announced on Thursday
after leaders from Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Mexico, Panama, Peru and the United States
met in New York.
IDB President Luis Alberto Moreno and World Bank Group President Robert B.
Zoellick hailed the initiative as a timely effort to defend Latin America’s
hard-earned economic gains in the face of global financial instability. They
noted that trade has been a powerful tool for growth that has helped the region
recover from past crises.
“I welcome this initiative because trade can play an important role in
overcoming poverty,” said Zoellick. “With the Doha global trade
negotiations stalled, it is more important than ever that countries press on
with trade liberalization.”
“This is not the time to recoil from trade liberalization but to deepen
our economic integration,” Moreno said. “The ratification of the
free trade agreements between the United States, Colombia and Panama would be
an important step in the right direction.”
Under the initiative, countries will cooperate on building an open architecture
for regional trade consistent with the global trading system, increasing opportunities
for their citizens to benefit from expanded trade, exchanging best practices
on labor and environmental standards and enforcement, and engaging the private
sector and civil society to advance these goals.
Moreno and Zoellick noted that in the last decade Western Hemisphere countries
have reached more than 30 comprehensive trade agreements with partners around
the world, opening new markets and business opportunities for their companies,
generating new jobs for their workers and boosting their economic competitiveness.
“At the IDB, we take this to heart,” Moreno said. “We are
heavily invested in promoting trade and economic integration, providing assistance
to Latin American and Caribbean countries in the implementation of new trade
agreements and enhancing their capabilities in key areas such as trade facilitation,
export promotion, and economic competitiveness. But these efforts must be underpinned
with a political will to bring down trade barriers. No time is more appropriate
than this time of turbulence to marshal the necessary will.”
“The World Bank Group is fast expanding its trade facilitation services,
and we can do so in concert with regional groups,” said Zoellick. “We
offer Trade and Transport Facilitation audits and Port Modernization tool kits.
We can make multilateral trade work better by sharing practical experience of
cutting costs and increasing efficiency. We can help countries simplify and
harmonize procedures and documentation across a supply chain.”
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