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Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts Volume 3, Number 14 May 11 - 17, 2003 Quezon City, Philippines |
Bush
to Propose U.S.-Middle East Free Trade Accord, Aide Says By Heidi Przybyla Back
to Alternative Reader Index
Washington,
May 9 (Bloomberg) -- President George W. Bush today will propose creating a
U.S.-Middle East Free Trade Area within the next 10 years to promote democracy
and stability, an administration official said. Economic
prosperity and security are essential to creating conditions for peace in the
region after the war to end Saddam Hussein's regime in Iraq, the official told
reporters in a preview of a speech Bush will give at the University of South
Carolina's commencement. ``The
Middle East has been a big loser in the last 20 years'' as trade deals involving
China, Africa and Southeast Asia mean those regions get more economic
opportunity, said Edward Gresser, an analyst at the Progressive Policy Institute
in Washington, a research organization for pro-trade Democrats. The
share of world exports from more than a dozen Muslim nations plunged to 3
percent in 2001 from 13.3 percent in 1980, said Gresser, a former U.S. trade
official. A free-trade accord would boost income and may help prospects for
peace in the region, he said. Lowering
trade barriers and encouraging investment also is a way to mute anti-Americanism
and discourage terrorism, U.S. Trade Representative Robert Zoellick told the
Export-Import Bank's annual conference last month. ``We're
looking at how we can follow up the military victory in the Gulf with trade and
economic initiatives,'' Zoellick said. He
and Secretary of State Colin Powell will discuss political, social and economic
improvements at a World Economic Forum meeting in Jordan next month, the Bush
official said. Security,
Trade Powell
leaves today to seek progress on a top priority for Muslims: a peace accord
between Palestinians and Israelis. The U.S. gave both sides a ``road map'' of
steps toward creating a Palestinian state in three years. Bush's
free-trade proposal comes as the U.S. also is asking the United Nations Security
Council to immediately lift sanctions on Iraq and for the resumption of oil
exports under UN and World Bank monitoring. The
U.S. has been at odds with France and Russia, which opposed the Iraq war, over
the UN's role in postwar Iraq. France and Russia have called for the UN to take
a ``central'' role; the U.S. supports advisory participation. The
U.S. government-backed Ex-Im Bank is ``interested'' in supporting U.S. exports
to Iraq, the agency's president, Philip Merrill, said at last month's Ex-Im Bank
conference. The
agency is exploring how it could create an oil trust fund in Iraq to guarantee
any loans, as one way to assure repayment, Merrill said. Missing
Out Bush
will say in today's speech that while the Middle East has rich cultural
traditions, it is missing out on economic growth that has blossomed in other
parts of the world, the administration official said at the briefing. The
World Bank expects annual economic growth in the Middle East to average 1.3
percent per capita during the decade, the slowest rate of any region. Half the
300 million citizens are younger than 24. One person in five is unemployed and
the work force is the fastest growing in the world. Bush
will outline benchmarks for nations that want to qualify for membership in any
free-trading zone, including progress on providing access to capital for small-
and medium-sized businesses, improving property rights, fighting terror and
strengthening the rule of law, the official said. Bush
won't specify which nations may qualify to participate in any agreement, the
aide said. Olive
Oil, Shoes The
U.S. approved a free-trade accord with Jordan in 2001 as Bush courted Muslim
support for the war on terrorism after the Sept. 11 attacks on the U.S. In March
of this year, the U.S. began trade talks with a second Muslim country, Morocco. AOL
Time Warner Inc., Merck & Co., 3M Co. and other U.S. companies are pressing
for the Morocco accord, saying it would open the way to fight movie piracy and
expand investment. The
Muslim world's share of global trade and investment has sunk to less than a
quarter its level of two decades ago, as the nations kept some of the highest
trade barriers in the world and failed to develop industries other than oil and
gas, according to the World Bank. U.S.
sanctions have also curbed trade with Iraq and two other of the largest regional
economies: Iran and Libya. Gresser
said a reduction in U.S. import tariffs on items such as olive oil, shoes,
clothing, carpets and handbags would help fuel Muslim economies as well as
benefit U.S. retailers and consumers. ``It's
one part of the world where we haven't had a big trade initiative,'' Gresser
said. ``It's a big missing part of our trade agenda.'' May 2003 Bulatlat.com We want to know what you think of this article.
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