Bush says Latam free-trade idea stalled for now

By Steve Holland

WASHINGTON (Reuters) – President George W. Bush said ahead
of the 34-nation Summit of the Americas in Argentina that his
proposal for a sweeping free-trade zone in the hemisphere has
stalled and it is time to focus on a global trade agreement
cutting agricultural subsidies.

Speaking to a group of journalists before his visit to
Argentina, Brazil and Panama, Bush said he had not changed his
mind about the need for a Free Trade Agreement of the Americas,
but that for now the global trade talks known as the Doha round
had taken precedence.

The free trade agreement was originally envisioned to be
created this year but has been slowed by disputes between the
United States and Brazil, Argentina and Venezuela.

“The FTAA has stalled, I agree,” Bush said on Tuesday. “On
the other hand, at this point in time, the Doha round really
trumps the FTAA as a priority, because the Doha round not only
involves our neighborhood, it involves the whole world.”

Bush acknowledged the stalling of the hemispheric trade
zone at a time when summit negotiators have been discussing
whether to include a commitment to restart talks on the
agreement in 2006.

Bush has proposed ending U.S. subsidies for American
agricultural products if other countries involved in the world
trade talks will do the same.

So far progress has been slow. The European Union, the
United States, Brazil, India and several other countries are
trying to draft a plan to cut farm subsidies and tariffs in
preparation for a World Trade Organization meeting in Hong Kong
in December.

BENEFITS OF TRADE

Bush, who leaves on Thursday for the Mar del Plata summit,
spoke to journalists representing news organizations from
Argentina, Brazil and Panama, all countries that he said he has
never visited.

He goes at a time when he has fewer allies in a region that
largely opposed the Iraq war and perceives a lack of interest
from Washington.

He said he would stress the benefits of trade and
democracy, while recognizing not everybody agreed with
decisions he had made.

“The truth of the matter is there’s people who have
disagreed with the decisions I’ve made all over the world. And
I understand that’s what happens when you make decisions,” Bush
said.

He added: “I don’t think good relations necessarily mean
somebody has to agree with America 100 percent of the time …
Good relations is mutual respect and a desire to work together
to solve common problems.”

As for Venezuelan President Hugo Chavez, who Washington
sees as an irritant in the region, Bush sounded skeptical of an
idea said to have been floated by Chavez that oil-rich
Venezuela should have an electricity-producing nuclear power
plant.

The United States is already at odds with North Korea and
Iran over their nuclear programs.

“I guess if I were a taxpayer in Venezuela I would wonder
about the energy supply that Venezuela has, but maybe it makes
sense,” Bush said, adding that he would talk to Argentine
President Nestor Kirchner about it if necessary.