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US-Andean countries

In May 2004, the US began negotiations with Colombia, Ecuador and Peru to reach some form of FTA with the three Andean countries — and later, if US plans worked out, Bolivia as well.

According to initial media reports, “There are three different scenarios under discussion about how to structure the free trade agreement with the US. The first would be one plurilateral agreement between the four countries. The second would be individual bilateral agreements between the US and each of the three Andean countries. The third would be an agreement between the three Andean Community of Nations (CAN) members, who have obligations within CAN, and the US. The US prefers the arrangement used in the CAFTA agreement, i.e. one plurilateral agreement among all parties. This option is not viable through CAN because not all CAN members are involved in this FTA process with the US. Therefore, according to the head of the Colombian delegation, what may emerge is a plurilateral agreement between the US and a special bloc comprising Colombia, Ecuador, and Peru.“

Since then, a number of special tensions have marked these FTA discussions. One is that the Andean countries have been reluctant to go beyond their WTO obligations in terms of intellectual property rights. The governments have kept expressing strong concerns about biodiversity, traditional knowledge, and access to medicines. Another overwhelming concern has been with regard to agriculture, where the Andean countries are reluctant to liberalize their markets on bilateral terms if the US will not agree to reduce domestic subsidies. An underlying concern has been how the FTA would interact with Andean Community law; that is, which of the two would take precedence.
Regarding the US side, Washington’s lack of flexibility has been pointed out by many as a hallmark of the process. For that reason, many people refuse to call these “negotiations“.

Indigenous peoples, farmers’ organizations, labour unions, and other social movements have been heavily mobilizing to stop this FTA. The FTA has been seen from the start as a thorough capitulation to US economic and geopolitical interests. In Colombia, Ecuador, and Peru, different sectors have pushed for national referenda on the FTA in their respective countries — and on several occasions organized their own.

In late September 2005, the US issued an ultimatum to sign an agreement by 20 November 2005 — before the 2006 electoral process in all three Andean countries and the mid-2007 expiry of Bush’s “fast track“ trade negotiating authority. No agreement was reached by end November, with Colombia and Ecuador holding back on several grounds and Peru saying it would proceed alone.

Since Peru signed a bilateral trade deal with the US in December 2005 and bilateral negotiations continuing with Colombia as of that date (until the US-Colombia deal came into force in March 2012), information on subsequent events is presented separately under US-Peru and US-Colombia.

As to Ecuador, Quito’s cancellation of a contract with Occidental Petroleum (Oxy) in May 2006 sounded the death knell for negotiations around a US-Ecuador FTA. With this decision, the government of Ecuador obeyed its law and the demands of the majority of Ecuadorans, who had been calling for an end to the negotiations and for Oxy’s departure.

last update: May 2012


Ecuador: Protests threaten - ’FTA signed, Palacio out’
Several weeks of turmoil have escalated as thousands of workers, students and indigenous groups have taken to Ecuador’s streets and highways, bringing the country to a standstill, forcing the resignation of the interior minister and demanding an end to negotiations for a free trade agreement (FTA) with the US.
Indians vow to continue fighting free-trade pact
When Ecuador’s Indians start building roadblocks and organizing other protests, they usually spark fears that the country’s president will soon be toppled.
Colombia FTA could help sell more US rice
If Colombia negotiates trade provisions with a third country that provides better access for rice than provided in the FTA with the United States, US rice automatically receives the same preferential tariffs.
Indian leader rejects Ecuadorean president’s call to end anti-US free trade protests
The leader of Ecuador’s main Indian movement on Thursday rejected President Alfredo Palacio’s call to end protests against free-trade talks with the United States.
Morales will never agree FTA
President Evo Morales vowed never to negotiate a free-trade agreement with the United States — then lunched Thursday with the US ambassador and said he wanted to meet with President George W Bush on “fair trade.’’
Peru, Colombia spark free-trade-pact déjà vu
Capitol Hill is starting to feel the pangs of trade déjà vu as two pending Latin American free-trade agreements prompt Democrats to demand stronger labor standards and business lobbyists push back.
Ecuador: social agitation against FTA
The battle against the Free Trade Agreement (FTA) with the United States is continuing in Ecuador.
Ecuador president calls for calm
Ecuador’s president has urged Ecuadoreans to stand together after nationwide protests threatened to destabilise the country. The demonstrations have been sparked by ongoing talks with the United States over a possible free trade agreement
Ecuador’s interior minister steps down
Ecuador’s interior minister resigned Wednesday as protests over a US free trade plan spread from the Andean highlands to the oil-producing southeast jungle, where police clashed with demonstrators.
Ecuador workers stop
Ecuadorian laborers kicked off Wednesday a 24hr nationwide work stoppage including roadblocks to reject the Free Trade Agreement (FTA) with the US and the Executive’s neoliberal policy.