28 July 1999

US Again Seeks Customs Changes for Hemispheric Trade

U.S. trade negotiators will try again this week to persuade other Western Hemisphere nations to adopt customs innovations to ease the flow of trade. The steering committee for negotiation of the Free Trade Area of the Americas, which would create a free-trade zone for the entire hemisphere by 2005, is scheduled to meet today through Friday in Cochabamba, Bolivia.

The committee will seek agreement on business-facilitation measures -- most of which deal with customs issues -- and begin working on plans for a hemispheric trade ministers meeting in Toronto on Nov. 3-4.

Business-facilitation issues "will be the main topic," said a diplomat from Canada, which is leading the first 18 months of the seven-year negotiations. Thirty-four countries are participating in the talks.

In April, the steering committee developed a consensus on five issues and reached near unanimity on two. U.S. negotiators have been unable to win support for a proposal to collectively promote greater use of "control and release" mechanisms to speed customs clearance. Many countries in the Americas already allow such mechanisms through in-bond and similar programs.

Among other measures supported by U.S. negotiators and meeting with various levels of support are simplifying procedures for low-value shipments, easing the clearance process for express shipments, a common code of conduct for customs officials and simple clearance for promotional or sales materials. There also are pledges to develop common data elements and to develop risk-analysis techniques that add uniformity to customs inspection.

Aside from debate over customs measures, the steering committee has important housekeeping works. Argentina takes over from Canada to chair the trade talks after the November trade ministers meeting.

Negotiators must not only begin discussing who will lead the nine negotiating groups, but must decide what those groups should discuss.

Because the next round of World Trade Organization talks will begin Nov. 30, Canada wants a declaration that the Free Trade Area of the Americas process will spur global talks.

The Canadian paper also calls for business-facilitation measures to be promoted throughout the seven-year talks, meaning customs issues may remain in the forefront throughout the negotiations.