U.S. Chargé D'Affaires James Nealon addressing a seminar on doing business with the United States held in Montevideo, November 17, 2006.

Montevideo -- United States is committed to increasing its international trade, in particular with the Americas, stated U.S. Chargé D'Affaires James D. Nealon in a talk given at a seminar on doing business with the United States organized by the Foco Uruguay organization, November 17, 2006.

In his remarks, Nealon stated that "the degree to which we show that more trade results in increased growth will serve as an inspiration for other countries and regions of the world." Nealon added that "through trade and policies of preferential access, the United States has reformed the economic dynamics of the region."

The seminar hosted a number of representatives from several of the leading firms in Uruguay. The panelists were Marvin Risco, executive director for Weyerhaeuser in South America; Jorge Sienra, former director of Foreign Trade; Kamal J. Qatato, president of Sabre Global Services; Dr. Daniel Ferrere, director of Ferrere Abogados; and Fernando Secco Siquiera, president of the Industrial Meatpackers Association of Uruguay. (La Asociacion de la Industria Frigorifica del Uruguay).

Following is a translation of Nealon's remarks originally delivered in Spanish:

REMARKS BY U.S. CHARGE D'AFFAIRES JAMES NEALON
Foco Uruguay Seminar
Montevideo, Uruguay
November 17, 2006

JAMES NEALON: I am very grateful for your presence at this seminal entitled Doing Business with the United States. Business leaders like yourselves who build trade are the very heart of a growing commercial relationship between Uruguay and the United States, and you are the movers and shakers that maintain and give life to our trade relations.

The United States is committed to increase its international trade, in particular with the Americas. Trade, particularly free trade, promotes democracy, foments free markets, encourages economic integration and permits individuals to take advantage of opportunities in a growing economy.

The question is how to connect democracy with trade and economic development. It is about how to demonstrate that democracy is not a conservative form of government designed to protect the privileges of the elite, but rather a form of government designed to open societies and create opportunities, not only for political participation, but also for social and economic participation.

The central point is to demonstrate that democracy can achieve results and that this commitment in our region to democracy and economic integration will generate prosperity.

The degree to which we can demonstrate that more trade results in more growth will serve as an inspiration for other nations and other regions of the world. On the other hand, our failure will reinforce the position of those who have always argued that only authoritarian governments can make the tough decisions necessary to end poverty and inequality and to create societies that can grow.

For the Americas, the tendency to look within and not to see one's self as part of a broader hemispheric project, can have negative ramifications for prosperity. The opposing vision that we face is not new. We are seeing a return to a personalistic leadership style, authoritarian leadership in which democracy is seen as a means to accumulate power and where development is seen as a product of class conflict.

This opposing viewpoint does not understand economic growth in terms of free markers, integration or development. It continues to talk in terms of the State as the controlling agent and promoter of growth instead of functioning as the creator of an enviornment in which the private sector, operating in an environment that is properly regulated, facilitates economic growth.

This opposing vision does not understand societies united by consensus, but rather societies guided by conflict that can only be administered by an authoritarian State. We know what is the outcome of such a vision: compromised institutions, economies that don't work, frustrated people and an sofocated civil society

By means of trade and policies of preferential access, the United States has reformed the economic dynamic of the region. Our free trade agreements have dismantled the old economic structures and the old ways of doing things, and have opened markets for all involved entities. With our partners in the free trade agreements, we are creating an environment in which they can establish new companies and in which small and medium sized businesses can contribute in the development of healthy economies that take people out of the informal economy and integrate them into the formal sector.

Today, our free trade agreements encompass approximately two thirds of the gross national product of the Americas. Our partners are Mexico and Canada in the NAFTA agreement; the Central American countries and the Dominican Republic in CAFTA; Chile, Colombia and Peru, with who we have signed agreements that currently await ratification by our Congress. Will continue working with Panama in order to conclude a treaty. We are having separate discussions about trade and investment with the countries of the Caribbean by means of CARICOM, and with Paraguay and Uruguay via the Joint Trade and Investment Commission.

Our commercial agenda, whether through free trade agreements or via preferential access treaties has made it possible for 85% of the goods that enter the United States from Latin America and the Caribbean do so tariff free. By all means our goal is, by means of the OMC and the free trade agreements, to increase this percentage and achieve completely free trade.

Every nation in the Americas, including Uruguay, is important to us. In recent years, the United States has been transformed into the main purchaser of Uruguay's exports. Uruguayan businesses and its citizens in general have benefited from the creation of jobs and the new opportunities and result from increased trade.

As you know, Uruguayan Secretary to the Presidency Gonzalo Fernandez and Finance Minister Astori are in Washington this week where they will be conducting talks on the TIFA that we hope to sign shortly. TIFA (Trade and Investment Framework Agreement) will provide us a broad range in which we can continue our dialogue on trade and investment.

Minister Astori also participated in an important event held this week in Washington to promote our Bilateral Investment Agreement (BIT) with U.S. investors The agreement became effective on November 2 and is an important instrument for increasing investment, to extend prosperity an create jobs.

The Commercial Section of our embassy has given advice to hundreds of Uruguayan and American companies who are looking for commercial opportunities. I urge you to continue taking advantage of the knowledge and contacts of our Commercial Section.

We have here a number of representatives from Uruguayan companies who are doing a great deal of business with the United States, and of American companies who are important investors in Uruguay. I hope that your experience and advice will be useful to you. The U.S. market is demanding, but it is the Number 1 market in the world. Everyday, we purchase more than five thousand billion dollars in goods and services -- that is the equivalent of Uruguay's annual exports in just 18 hours! The United Stated also exports some of the finest products in the world, and exports to Uruguay have grown significantly in recent years. I hope you take advantage of these opportunities.

 
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