Brasília - The Commercial Negotiating Committee of the Free Trade Area of the Americas (FTAA) meets next week (March 18 and 19) in Puebla, Mexico, for what is expected to be a debate on the Mercosur proposal for a "FTAA light." The "FTAA light" would consist of a minimum set of obligations and rights for all the 34 participating nations, while permitting them to reach agreements with other nations, individually or in groups, on specific issues.

Also on the table is the problem of different approaches presented by Mercosur, and the United States and Canada. The former want to resolve questions on access to footwear markets, imports of citrus juices and steel, anti-dumping laws, and farm subsidies in the US. The Americans and
Canadians want to focus on services, investments, government procurement and intellectual property laws.

Another point of discord is the question of lists. Mercosur wants what is called a "positive" list, where countries list products to be free of surtaxes. The US favors a "negative" list, where countries list products they want excluded from the free trade agreement.

According to Adhemar Bahadian, the Brazilian co-president of FTAA negotiations (the other co- president is American), one of the sticking points is the minimum list of obligations and rights for all the participating nations.

The US will arrive in Puebla with the support of 13 countries that it has agreements with, or is negotiating with. They are known as the G-14. Brazil and Mercosur have joined the Andean Community and may present opposition to the US position.

"If the US is not willing to be more flexible in areas of its interest, we will do the same. It has to be understood that we are not in favor of an FTAA at any price, any old way," declared Bahadian in testimony at the Senate this week. "The FTAA will be successful only if it makes a contribution to the reduction of social and economic inequalities in our region," he concluded. (AB)