USAID LAC Trade Update - November 2004
A. Update
Trade Drives LAC Region Economic Growth
The economy of Latin America and the Caribbean will grow 4.5
percent by the end of the year, according to estimates from
the Economic Commission for Latin America and the Caribbean
(ECLAC).
Leading the growth is Venezuela at 12 percent, followed by
Uruguay at 9.5 percent, Argentina at 7.1 percent, Ecuador
at 5.5 percent, Panama at 5 percent, Chile at 4.8 percent,
Peru at 4.2 percent, Mexico at 3.9 percent and Brazil, Colombia
and Costa Rica at 3.7 percent. Haiti and the Dominican Republic
are expected to see their economies fall by two percent and
one percent respectively, according to ECLAC.
The report attributed the increases to exports, which it
said fueled recoveries in several economies including the
U.S., Japan and China. ECLAC also predicted the Gross Daily
Product will rise three percent in the region, and noted that
despite two years of growth, unemployment in the region runs
a high 10.3 percent.
Also reported was:
- LAC countries remain concerned about price stability and
being able to contain rising public debt and
- LAC countries’ average real effective exchange rate
in late 2003 was 18 percent higher than the average for
1997-2001. This gain in competitiveness was maintained during
the early half of 2004.
STOP! Targets Piracy
The office of the United States Trade Representative
announced last month a new initiative, Strategy Targeting
Organized Piracy (STOP!), to fight pirated and counterfeit
goods.
Key elements include increased:
- Focus to dismantle criminal enterprises that steal intellectual
property;
- Fines to violators far beyond seizing shipments; and
- Security around U.S. borders and in marketplaces.
More information: Strategy
Targeting Organized Piracy (STOP!) report - (pdf, 51.5KB)
U.S.-Andean Team Meets
The U.S. - Andean Free Trade Agreement (FTA) Negotiation team
met for its fifth round of talks October 27-29 in Guayaquil,
Ecuador.
The working group participated in a forum with Andean businessmen
who expressed concerns of small and medium-sized enterprises
relative to the FTA. Bilateral sessions were held with each
of the Andean countries as well.
Trade Capacity Results Available
Results of the annual Trade Capacity Building survey are now
available at http://qesdb.cdie.org/tcb/index.html
Supermarkets Reshaping Farmer Opportunities
Research conducted by Dr. Thomas Reardon of Michigan State
University shed light into the impact that the spread of supermarkets
is having on the small farmer in LAC countries.
Dr. Reardon reported that spurred by foreign investment,
the supermarket concept caught South America in its first
wave and that the share of supermarkets in the food retail
chain rose from ten to 20 percent in 1990 to 40-60 percent
in 2002. Mexico and Central America were caught in a second
wave in which the share of supermarkets in the food chain
rose about 20-40 percent.
Long associated with the upper to middle classes of major
cities, supermarkets are increasingly becoming the norm in
secondary cities and towns, used with more frequency by lower
middle class and the working poor, the study demonstrated.
Additional information can be obtained by contacting Dr.
Reardon at reardon@msu.com
B. Upcoming events
December 5-7 - The annual meeting of the
International
Agricultural Trade Research Consortium will be held in
St. Petersburg, FL.
November 30 – December 5 – Sixth
round of U.S. Andean FTA Negotiation in Tucson, AZ
December 6-8 – Miami
Conference on the Caribbean Basin in Miami, FL.
April 11-13, 2005 – Symposium
of the Americas
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