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FTAA Quito Ministerial Fact Sheet on Hemispheric Cooperation Program

The Hemispheric Cooperation Program Helping Small and Developing Countries To Fully Benefit from the
FTAA


What is the FTAA Hemispheric Cooperation Program (HCP)?
The HCP is proposed by the United
States as a special trade capacity-building program to assist small and
developing countries benefit fully from hemispheric free trade. The U.S. will
seek agreement to launch the program at the Quito Ministerial Meeting of the
FTAA on November 1.


National/Regional Strategies. Countries seeking technical assistance would prepare, with the help of
USAID and the Inter-American Development Bank (IDB), strategies identifying
needs in three areas: participation in negotiations, implementation of FTAA
commitments, and economic adjustment relating to the FTAA and economic
integration. Technical assistance could include:




Training for government officials, such as customs officers, environmental
analysts, bank regulators, patent and copyright officials, food safety
inspectors, and trade policy analysts.



Programs that foster trade policy coordination among government agencies
and that identify ways to make such trade agencies more effective and
transparent.



Programs to establish or improve statistical and analytical institutions,
similar to the U.S. International Trade Commission. Such agencies or
institutions would provide impartial and transparent information to governments
and civil society on trade policy issues.



Programs for business development, such as identifying new market
opportunities for small and medium size companies.



Programs to assist governments with regulatory reform in areas such as
revenue systems, environmental protection or competition policy.


These strategies would also help integrate trade into countries'
overall development efforts and into their development programs with the IDB and
the World Bank.


Both Public and Private Sector Resources. Government funding only addresses part of the need.
Active participation by the private sector and foundations would bring
additional resources and creativity to the HCP. For example, roundtable sessions
would bring together public and private donors to identify the best possible
programs, from both private and public sources, to meet the needs identified in
each country's trade capacity building strategy.


HCP Support Is Both Financial and Non-financial. U.S. technical assistance for trade capacity building in
the region was $102 million in FY 2002, and President Bush is seeking an
increase of approximately $40 million for FY 2003. At about $140 million, FY
2003 U.S. regional trade capacity-building assistance would be more than double
the FY 2001 level of $60 million. It is envisioned that IDB programs would also
be available, such as fast-track loans of up to $5 million for capacity building
for trade-related ministries. Experts from other FTAA partners would also be
available to train government officials in smaller economies and less developed
countries.

Welcomed by all countries participating in the FTAA, the HCP is
an unprecedented approach that could become a model for work in the WTO.