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US working on proposals for 2002 Chile trade talks
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USA: November 29, 2001


MIAMI - The United States was still formulating key labor and environmental proposals for a free trade pact with Chile and would not put them on the bargaining table before January, a U.S. trade official said yesterday.


Regina Vargo, lead U.S. negotiator in trade talks between the countries, said the U.S. side was awaiting a vote on trade in the U.S. House of Representatives before pressing ahead on labor and environmental proposals.

"We are still formulating what we would like them to be," Vargo said at a news conference in Miami.

Democrats and Republicans in the U.S. Congress are divided over how environmental requirements and labor standards should be incorporated into trade agreements, with the House to vote Dec. 6 on a bill allowing President George W. Bush to put trade deals his administration negotiates to Congress for quick approval.

Bush and Chilean President Ricardo Lagos have said they wanted a Chile-U.S. trade pact by next month. But that deadline would not be met, according to Vargo and Osvaldo Rosales, Chile's vice minister for trade.

Vargo, Rosales and another 120 negotiators from Chile and the United States are into the second day of a week-long round of talks in Miami. Another round, the 10th and likely last, will be held in Santiago, Chile, in January, they said.

Opponents of the Chile-U.S. pact, saying it was another step in the march to a hemispheric free-trade zone, criticized the negotiators for bargaining behind closed doors and said such agreements were anti-democratic and undermined labor rights and environmental safeguards.

Saying the negotiators were making progress in Miami, Vargo said Bush administration was eager to strike a free-trade pact with Chile, whose exports of fruit, copper, fish and other products to the United States last year totaled about $3.2 billion.

She said the United States, whose 2000 exports to Chile totaled $3.5 billion, had lost market share and an estimated $800 million to $1 billion in sales to Chileans in recent years because Canada and other nations had struck free-trade deals with Chile.

The United States has free-trade agreements with Mexico and Canada. Chile is the 32nd largest U.S. trade partner.


Story by Michael Connor


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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