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Peter F. Romero Acting Assistant Secretary for Inter-American Affairs Remarks before the Caribbean/Latin American Action Miami Conference Miami, Florida, December 9, 1998

It's a pleasure to be with you again. This conference has always been a key event for articulating U.S. policy toward Latin America and the Caribbean and for hearing from you about the problems and successes of that policy. It is my great honor to share the podium today with President Armando Calderon Sol. President Calderon has dedicated his Presidency to consolidate the peace, strengthen the democratic system, and reform the economy of his country. In all of these tasks, he has been remarkably successful. Mr. President, I salute your commitment to create a more prosperous El Salvador with strong democratic institutions. I know too that you are on your way to Washington to join with your Central American colleagues to discuss the nearly overwhelming task of rebuilding after Hurricane Mitch. On that issue, I wish you godspeed and give you the commitment of the United States government to do all we can.

I have always learned a lot at these conferences, and I want to keep on learning. So I invite you to offer your ideas and comments to me and to my colleagues, not only here at this conference but throughout the year.

As I look back over the events of the past year, I see some serious crises and problems, but also some major opportunities and accomplishments.

Our own security and well-being are more closely tied to the nations of the Western Hemisphere than to any other region of the world. Geographic proximity, migration and demographics, information technology and booming trade have brought about de facto integration at a rate that strains the capacity of governments to keep pace. A whole generation disenfranchised by authoritarian governments during the '70s and early '80s is now in power. We now have a historic common agenda for the region, articulated in the Summit of the Americas process -- an agenda which reflects converging values in democracy, human rights, economics, and environment.

In this context, what are we trying to achieve? What are our goals?

A Multilateral and Collaborative Hemispheric Agenda

I want to emphasize that we intend to achieve our goals primarily through a multilateral and collaborative process. The experience of the two Summits of the Americas in Miami in 1994 and in Santiago, Chile this April; the growing leadership of Canada in the region; the launching this fall of the negotiations for a Free Trade Area of the Americas (FTAA) -- these are examples of the new collaborative process. Collaborative mechanisms may be more time consuming and laborious, but I strongly believe they are more productive over the long run.

Because of the convergence of values and interests in the hemisphere, the U.S. policy agenda reflects the hemisphere's agenda. Our key goals include:

Expanding economic growth and ensuring that the benefits of growth result in prosperity that is widely shared.
Consolidating democratic institutions, promoting respect for human rights, and reinforcing military professionalization and subordination to civilian leadership. A key element of both these goals is to improve judicial systems so they deliver transparent, equitable justice for all citizens.
A better life for all citizens. That means combating transnational crime and stemming the flow of illegal narcotics that put at risk our youth here in the U.S. and throughout the hemisphere. It also means increasing sustainable development, encouraging sound environmental practices, and improving health and the incidence of communicable diseases.

Let me mention here four specific accomplishments during this year that reinforce the drive to a collaborative hemispheric relationship.

First is the Santiago Summit, during which our leaders again celebrated our shared commitment to democracy and market economics, reviewed progress since the last summit in Miami, refined the agenda of work underway, and agreed on a number of new initiatives. The focus of the work launched in Santiago was to strengthen the institutions which consolidate the economic and political progress made so far and ensure that the benefits of growth are shared by all levels of society. And, as was the case in Miami, the leaders in Santiago established follow-up mechanisms to ensure that even the most difficult issues are continually worked on.

Another major success of 1998 was the launching of the FTAA negotiations. The nine negotiating groups and several consultative groups for the FTAA have met a number of times here in Miami; they are developing specific negotiating agendas, schedules, and techniques to turn the FTAA from a vision into a functioning reality. I want to thank the authorities of this city, this county, and a number of private sector groups for their valuable support for these negotiations. There is a long and undoubtedly difficult road to complete these negotiations by the year 2005, as has been agreed by the hemisphere's leaders, but I am heartened that we have begun, and begun well.

I want to note very briefly that another trade agreement within the hemisphere, the North American Free Trade Agreement (NAFTA), is increasingly showing its value to all three of its members -- Canada, Mexico, and the United States. From 1993 to 1997, trade among the three partners boomed: Canada-U.S. trade increased over 50%; Canada-Mexico trade was up over 80%; and U.S.-Mexico trade climbed over 90%. It is no accident that Mexico has now surpassed Japan as our second-largest trading partner, and that Canada continues to consolidate its position as our top trading partner. NAFTA's fifth anniversary will be celebrated in January 1999, and from this perspective, we are able to see just how important the benefits of this agreement have been for the three countries involved, and for the hemisphere as a whole.

The third is the growing leadership of Canada in the hemisphere. Let me note here Secretary Albright's decision this summer to establish a new Bureau of Western Hemispheric Affairs which will integrate the offices of the current Bureau of Inter-American Affairs with the Office of Canadian Affairs ... which has heretofore been a part of the State Department's European Affairs bureau. This reflects Canada's growing leadership role in the region and the Canadian Government's decision to reorganize along the same lines several years ago. As the current chair of the FTAA negotiations, Canada will host a critical FTAA meeting of Trade Ministers next year. It will also host the third Summit of the Americas sometime around the year 2000, as well as the General Assembly of the Organization of American States (OAS) in 2000. Indeed, even the Pan American games will be hosted by Canada next year!

Fourth is the meeting last month in Buenos Aires of the Fourth Conference of the Parties (COP IV) of the UN Framework Convention on Climate Change -- an example of the growing commitment of Latin America and the Caribbean to preserving the environment. I would like to take this opportunity to congratulate Argentina for its voluntary commitment to binding emissions targets. This pledge reflects the growing recognition among our partners in the hemisphere and elsewhere that climate change is truly a global challenge that requires a global solution. The COP IV meeting itself provides a vivid example of the growing role of transnational issues in our daily life -- on an issue so inherently local, it would seem, as the weather. The action plan adopted in Buenos Aires advanced the momentum from the Kyoto round of talks on issues such as emissions trading and technology transfer to help developing nations along the path to clean, sustainable growth.

I could cite many more examples of effective collaboration, such as the Brazil financial package, the relief and reconstruction programs in Central America and the Caribbean, the multilateral efforts to successfully resolve the Peru/Ecuador border issues. All these, and many more, show the growing spirit of hemispheric multilateral cooperation.

Cuba

There is one part of the hemisphere which sounds a dissonant note in the general harmony, and that is Cuba. Our goal continues to be to achieve a peaceful democratic transition. There is, I believe, broad consensus within the United States and in the hemisphere on some key points: that the human rights situation in Cuba remains deplorable, and that the Cuban Government has taken no significant steps toward political or economic change. While opinions may differ over specific points of policy, I don't think anyone would differ on the need to promote peaceful democratic change and respect for human rights in Cuba. Reaching out to support the Cuban people has become a central focus of U.S. policy, seeking creative ways to achieve our objectives, even as we maintain the pressure on the Cuban Government to make democratic changes. In March, we took some actions designed to increase people-to-people contact and give support to the Cuban people without helping Castro's regime. The U.S. Government will continue to speak out forcefully, to urge our friends and allies to do more, and to focus international attention on human rights abuses in Cuba. We are especially concerned now about the fate of four courageous leaders of the Dissident Working Group -- Vladimiro Roca, Marta Beatriz Roque, Felix Bonne, and Rene Gomez Manzano -- who have been imprisoned since July 1997 in inhumane conditions, and have just been charged with "sedition" and "acts against the security of the state."

The Risks Ahead

Despite the impressive accomplishments of the hemisphere over the past decade, there are real dangers that the region's advances could be reversed. Democracy and liberalized economic policies must produce substantial improvements in the lives of ordinary citizens if we hope to avoid cynicism about these institutions.

We must deal effectively with the crises which inevitably arise year after year, whether they be episodic events like hurricanes and financial crises, or deep-seated universal problems of poverty -- which still continue to burden roughly one-third of Latin America's people -- corruption, ineffective judicial system, and inadequate education.

Hurricanes Mitch and Georges

One of the crises which visited us in 1998 -- Hurricanes Mitch and Georges in Central America and the Caribbean -- brought damages of truly tragic proportions. Close to 10,000 people have died and more than one million people have become homeless. It is tragic that the worst devastation occurred in two of the poorest countries of the hemisphere, Honduras and Nicaragua. Let me take this opportunity to reaffirm to you our determination to work with the affected countries on both short-term relief and longer-term reconstruction. At this point, we have committed about $55 million for immediate emergency needs in the Caribbean and over one-quarter billion to the much larger emergency in Central America. On December 10 and 11 the Inter-American Development Bank in Washington will host a conference between the presidents of the affected Central American countries and international financial institutions and other aid donors to begin to develop a program for longer-range reconstruction. We think it absolutely essential that any and all assistance provided to the countries of Central America reinforce and strengthen the very positive trends on democratic institution building and strengthening of local governments and civil society that was already underway before the devastation of Mitch.

To provide incentives for increased investment over the longer run, this Administration has already committed itself to getting legislation through the Congress as quickly as possible on enhancing the trade benefits of the Caribbean Basin Initiative and implementing a moratorium on official debt payments by Honduras and Nicaragua to the U.S. Government. We intend to include the Bilateral Investment Treaty (BIT) which we signed with Honduras -- which demonstrates to potential investors the seriousness of this country's commitment to treat foreign investment fairly -- in the package which we will send to the Senate for ratification. We are exploring other actions that we can take to provide further relief.

Of course, whatever assistance we the official donors can provide will clearly be only a fraction of the total effort needed to restore the momentum in Central America. The private sector, within and outside Central America, will need to provide the lion's share of that effort. The White House has already announced a public-private partnership to complement official aid. The outpouring of sympathy and aid from the U.S. public has been impressive. I also want to thank so many of you in the audience who have contributed and are continuing to contribute your energies and resources to mitigate the suffering.

The Financial Crisis

Another difficult issue of 1998 has been the financial crisis, caused by the wave of global investor anxiety. However, in many respects, Latin America has performed better than many other areas in the world in responding to the wave of financial contagion.

Let me add that while some countries were more severely tested than others, investor anxiety about emerging markets is a process which is testing all of us -- including the United States. Our falling exports to and growing imports from Asia have given new strength to protectionist fears within the U.S. Let me assure you, however, that this Administration will fight very hard to keep U.S. markets open and to continue to push for freer trade within this hemisphere and globally.

Let me assure you also that the United States will continue to support those governments which demonstrate through action their commitment to continue moving toward market-based economies, sound macro-economic policy, open markets, and more transparent financial systems. In this connection, we are pleased that Brazil's $41 billion support package has been approved, and that Congress has agreed to the replenishment of the IMF's resources. These are strong steps that have helped reassure financial markets.

At the same time, it is crystal clear that to retain investor confidence, Brazil and all other countries touched by investor anxiety must continue to pass appropriate reforms, even when these are politically difficult. In the last analysis, the fate of each country lies in the hands of its own government and people; external assistance can only help if it supplements what is done by the country itself.

As a result of slower growth in many countries, and recession in some, as well as the hurricane damage in Central America and the Caribbean, there will, tragically, be a worsening of social conditions in some countries. The overall long-term prospect for Latin America, however, remains highly positive. A decade of market-based reforms has made Latin America more resilient than ever before. As the region continues its reforms, it will continue to attract foreign capital. As Treasury Secretary Rubin said when he met with Latin America's finance ministers and central bankers in September, this region is the world's "most forward-looking" in carrying out reform.

The Rule of Law

As I look at some of the deeper problems of the region, I feel both concern and considerable hope. The region's acceptance of the need to strengthen the rule of law has been fundamental to both political and economic progress. Transparency in governmental functions, a system of laws which is equitable and fairly enforced, respect for fundamental human rights -- these are crucial to political stability and investor confidence.

The region's commitment to these principles in the agenda of the Summits of the Americas is complemented by actual progress toward these goals on a day-to-day basis. We are looking forward with great anticipation to work on the regional Justice Studies Center -- which we believe will bring together the wealth of expertise and models from throughout the hemisphere on criminal justice reform. Countries throughout the hemisphere have taken bold steps to modernize and make more accountable their judicial systems, and we believe that accelerating that trend is one of the most useful things the summit process can produce.

The hemispheric meeting of Ministers of Justice has an agenda that furthers respect for law and its equitable enforcement. U.S. programs of assistance for the administration of justice help judiciaries to better serve their own citizens, as well as facilitating increased commercial integration. These programs have received widespread support from government and opposition leaders alike, civil society organizations, and other donor nations.

Reforming Education

There is also consensus in the region that, over the longer term, the key to both political and economic progress is universal access to quality education -- especially at the basic levels, but also increasingly at the secondary level.

This was the main theme of the Santiago Summit. Experience all over the world has repeatedly shown that education is the single most important factor in reducing poverty over the long run. In Santiago, our leaders recognized that Latin America at present is seriously deficient in providing quality basic education to all its people -- whether poor or rich, rural or urban, girls or boys, indigenous or of European origin. That recognition was followed by a commitment to improve the educational system from the bottom up and to do it quickly. This is a commitment which will take determined effort sustained over many years to fulfill, but the work has begun with energy and intelligence. And I am heartened to see how many in the business community have joined in the effort to provide relevant high-quality education and training programs.

Conclusion

As technology shrinks distance and time at ever quicker rates, the boundaries between our countries diminish in importance, and the scope for cooperative action increases. The United States and our neighbors in the hemisphere will remain friends and allies in bad times as well as good, because we have in common a fundamental interest in the stability and prosperity of the hemisphere. There is a growing sense of a partnership forged out of democratic and free market values which comes not only from the disappearance of the Cold War, but also from the growing self-confidence of the region's governments as freely chosen and legitimate representatives of their people. As we prepare to enter the last year of this century and of this millenium, I see our hemisphere entering a new age of cooperation and harmony.

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