Program to Strengthen Trade Related Capacities in the Americas

Phase II

Considering the diverse needs related to trade and its evolution, ECLAC evaluated the opportunity and relevance of certain activities in concrete areas. The following activities will be executed for the second phase of this program between 2006 and 2007:

G. Consultation process with the private sector in the implementation of a free trade agreement

As the negotiation process advances, the priorities of many governments of the region with respect to their cooperation needs are moving towards the implementation of the agreement. In order to ensure a successful implementation of the agreement a range of institutional, regulatory and technical changes need to occur together with the necessary restructuring of the private economy. In this context, the articulation of the needs of the private sector in a way that allows both private and public sectors to work together to ease up the transition costs and ensure successful integration into the world economy seems worth pursuing. ECLAC will cooperate with requesting governments with training and information sharing with respect to the consultation process with the private sector in the period subsequent to the negotiations.

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H. Market access, non-tariff barriers and SPS issues for certain exports in the Latin American and the Caribbean region

An analysis of the non tariffs barriers confronted by countries in the LAC region shows that the main obstacles to Latin American and Caribbean exports, in particular in the United States market, consist of technical barriers to trade. The most prominently non tariffs barriers confronted by Latin American and Caribbean exports in the United States are standards, testing, certification, and labeling and sanitary and phytosanitary measures.

Several countries in the region have expressed their needs for information to be able to understand and examine the non tariffs barriers, confront them when needed and comply with the rules and regulations for relevant and efficient market access. ECLAC will provide information and data required for an objective analysis of non tariffs barriers to trade and so strengthen countries’ capacity to understand and evaluate non-tariff barriers such as sanitary and phitosanitary measures, as well as, the complex system of standards and regulations.

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I. Development of a set of monitoring indicators to analyze the impact of trade agreements

Most Latin American countries, especially the smaller ones, have given great importance to trade and foreign investment in the overall development agendas creating a model of growth based on exports and attraction of foreign investment.  However, the capacity to monitor the impact of trade is limited since there is no consensus on what variables to use in order to measure trade impacts.

ECLAC will define a system of indicators and create a monitoring methodology to assess the possible gains and losses resulting from international trade agreements. A specialist will be contracted to design and create the monitoring mechanism and to implement it according to available data. The system of indicators will be shared with specialists from requesting countries in an expert’s workshop on ECLAC indicators. 

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J. Capacity building workshops on competitiveness diagnostics and the use of specialized instruments on trade and competitiveness

Policy makers need basic information in order to plan and implement effective economic policies related to trade.  Tools are needed to provide information on regional and global shifts in demand and a country’s capacity to respond based on its national production structures related to international trade.  This information is the basis for the development of policies related to trade: identification of market niches, promotion of exports and investment in particular areas.   Countries are also concerned on specialized application of data in order to undertake competitiveness analysis and requested assistance on developing a specific diagnosis of their competitive position, through their National Strategy documents.

Training will be given to national government officials so they can undertake their own competitiveness diagnostic studies.  The workshops are intended to create local capacities to analyze competitiveness. 

A course content and methodology have been created by ECLAC experts.  This course uses specialized instruments on trade and competitiveness analysis, so that local officials will acquire new skills on specialized databases and trade analysis.

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K. Intellectual property rights and innovation policies

During the first phase of this program a “Capacity Building Seminar on the Field of Intellectual Property Rights” took place.  At this seminar, most relevant issues on intellectual property rights were analyzed. Due to the vast number of issues covered by intellectual property (copy rights, patents, traditional knowledge, compulsory licenses, piracy, and related international treaties on biodiversity protection, protection of new varieties of plants, etc.) a deeper analysis should be done in Latin American in related issues.

Links between intellectual property rights, countries’ capacities to promote innovation and development policies require more in depth study of specific intellectual property rights and their implications in Latin America.  Specific studies on developing countries areas of interest will be conducted, including the link between intellectual property protection and innovation policies.

L. Environmental standards and environment cooperation in trade agreements

World Trade Organization acknowledges that many environmental problems are transboundary in nature and may be trade related in some cases.  Multilateral trade negotiations have not regulated transboundary environmental problems and FTAA negotiation does not have a negotiating group on environmental issues.  However, a creative approach to environmental issues within trade agreements has been put in place in the Americas.  It does not create regional standards but focused on local capacities to enforce national laws.

In addition, there is an emerging environmental cooperation agenda and diverse modalities to administer the cooperation and to fund it.  Due to differences in trade agreements and capacities to promote better environmental standards among countries in the Western Hemisphere, studies on better practices on how to administer existing environmental cooperation agreements will be undertaken by ECLAC and shared with specialists from requesting countries. 

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