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      L A T I N    A M E R I C A    D A T A    B A S E

        Chronicle of Latin American Economic Affairs

ISSN 1054-8874      Volume 9, Number 47   December 15, 1994
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    Copyright 1994, Latin America Data Base (LADB), Latin
        American Institute, University of New Mexico

           Acting program director:        Roma Arellano
           Acting managing editor:        Kevin Robinson
                       Staff writers:
        Claire Creelman, Patricia Hynds, Carlos Navarro

                       In This Issue:

LATIN AMERICAN COUNTRIES PLAN TO ACCELERATE INTRAREGIONAL
FREE TRADE TO PREPARE FOR HEMISPHERIC FREE TRADE ZONE

LEADERS FROM 34 NATIONS IN THE AMERICAS & THE CARIBBEAN AGREE
TO COMPLETE TALKS ON HEMISPHERIC FREE TRADE BY YEAR 2005

DOCUMENT: SUMMIT OF THE AMERICAS, "DECLARATION OF PRINCIPLES"

DOCUMENT: SUMMIT OF THE AMERICAS, "PLAN OF ACTION"

____________________________________________________________


*********************
       GENERAL
*********************


LATIN AMERICAN COUNTRIES PLAN TO ACCELERATE INTRAREGIONAL
FREE TRADE TO PREPARE FOR HEMISPHERIC FREE TRADE ZONE

     Since 1991, a wave of bilateral and multilateral economic
integration initiatives has swept through the Americas, since
most Latin American and Caribbean countries have rushed to
reform their economies and tear down barriers to trade.  Now,
with the agreement to incorporate all of North and South
America into a vast Free Trade Area of the Americas (FTAA) by
the year 2005, the Latin American and Caribbean nations are
expected to accelerate their efforts to link subregional
trading blocs into a single, broad free trade zone in the
southern hemisphere in preparation for their eventual joint
entrance into the FTAA.
     At the recent summit of Western Hemisphere heads of
state, held in Miami Dec. 9-11, the presidents of 34 countries
from around the Americas agreed to complete all negotiations
to forge the FTAA by the year 2005.  Once formed, the FTAA
will constitute the largest free trade area in the world, with
an estimated market of 850 million consumers and a combined
GDP of US$13 trillion.  (For a complete review of the economic
agreements reached at the summit, see other articles in this
edition of Chronicle.)
     Still, before the US and its two partners in the North
American Free Trade Agreement (NAFTA) will agree to merge
NAFTA into the FTAA, most countries in the Caribbean, Central,
and South America will be expected to open their economies
much more and bring their trade practices and economic
policies in line with the free trade parameters outlined in
NAFTA.  Indeed, so far Chile is the only other country in the
hemisphere that has been invited to open talks on joining
NAFTA because the US argues that even the nations next in line
for negotiations--such as Argentina, Venezuela, and Colombia--
must still enact basic reforms as a prerequisite for
membership in the North American trade accord.
     As a result, in the short to medium term, most Latin
American and Caribbean countries are expected to focus on
accelerating economic integration among themselves to prepare
for the eventual hemispherewide free trade zone.  By first
building on existing subregional trade agreements, countries
in the southern hemisphere will bring their own trade
practices in line with one another.  That, in turn, will
provide a multilateral framework through which the Latin
American and Caribbean countries can harmonize trade practices
with the NAFTA nations, and eventually negotiate the
construction of the FTAA.
     At present, a confusing mosaic of multilateral and
bilateral trade pacts exists throughout the southern
hemisphere, since most countries in the region have been swept
into an unprecedented thrust in recent years to open the
region's economies and tear down barriers to trade.  According
to the Latin American Economic System (Sistema Economica
Latinoamericano, SELA), at least 10 different trade agreements
have been signed involving two or more countries in Latin
America and the Caribbean just since 1991.  At the same time,
other trade accords that were already functioning have been
modified and broadened.
     In fact, Jan. 1 will mark a turning point in the regional
integration process, since three major trade accords will be
set in motion on that day.  About 90% of trade will become
duty free among the four members of the newly formed Southern
Cone Common Market (Mercosur), which includes Argentina,
Brazil, Paraguay, and Uruguay (see Chronicle, 11/24/94).
Also, the members of the Group of Three (G-3)--which includes
Mexico, Colombia, and Venezuela--will implement the first
tariff reductions and other agreements contained in their
trade accord.  The G-3 accord, which was signed in June of
this year, calls for the complete elimination of tariffs on
trade among the three partners within 10 years.
     Finally, the Andean Pact countries--Colombia, Venezuela,
Ecuador, Peru, and Bolivia--will enact a common external
tariff (CET) on Jan. 1, which those countries had been
negotiating on and off since the Pact was formed in 1969.  The
CET will range from 5% to 20% on products imported from third
countries, although a list of "exceptions" to the CET will be
slowly phased out by the turn of the century.  Trade among the
Andean Pact countries is already largely duty free.
     "The Latin Americans are going gangbusters on free
trade," said Elliot Abrams, who served as the top State
Department official on Latin America under former president
Ronald Reagan.  "There has not been one step back."
     The rapid creation of multilateral and bilateral free
trade zones has already spurred an unprecedented surge in
intraregional trade.  According to a study released in October
by SELA, the total value of goods and services traded among
the Latin American countries climbed to US$23.087 billion in
1993, an 87% jump compared with 1990, when intraregional
commerce totaled US$12.378 billion.  Intraregional commerce
now accounts for 18% of Latin America's total yearly trade, up
from 13% in 1990.
     In fact, since implementation of the FTAA will not begin
until after the year 2005, most Latin American executives
believe that growth in intraregional trade will be more
important in the short to medium term than growth in trade
with the three NAFTA countries.  A survey released in early
December by Arthur Andersen & Company found that an
overwhelming majority of executives interviewed in Argentina,
Brazil, Chile, and Venezuela said that trade among Latin
American nations will be more important than trade with NAFTA
members for at least the next five years.
     Moreover, some countries--particularly Brazil--hope to
first consolidate their positions as dominant trade partners
in the region in advance of the FTAA, thus enabling them to
better compete with the US and Canada in the long term.
"Brazil wants to emerge as a kind of queen bee of a South
American free trade zone," editorialized The New York Times in
a recent article.
     Brazil hopes to take advantage of shorter shipping
distances and other competitive edges to gain more of a
foothold in the face of North American competition, according
to The New York Times.  Brazilian manufacturers believe that
delays in building the FTAA will give them more time to
establish supply lines, credit lines, and consumer loyalties
throughout South America.
     Not surprisingly, then, last February Brazil became the
first country to formally propose the creation of a South
American Free Trade Association (Area de Libre Comercio
Suramericana, ALCSA) that would fuse Mercosur with the Andean
Pact, and then leave the door open for Chile to join as well
(see Chronicle, 03/03/94).  That initiative was embraced by
all South American nations during a conference of regional
trade ministers last June, and negotiations among those
countries have steadily advanced since then.  The
participating nations hope to complete all negotiations to
form ALCSA by June 1995.
     In addition, preliminary negotiations are already
underway to draw the 13 members of the Caribbean Community
(CARICOM) and the Central American Common Market (CACM)
nations into ALCSA after it is formed.  SELA--together with
the UN's Economic Commission on Latin America and the
Caribbean (ECLAC) and the Latin American Integration
Association (Asociacion Latinoamericana de Integracion,
ALADI)--sponsored the first conference of regional economic
integration officials Oct. 10-11 in Ecuador to discuss the
steps that must be taken to harmonize trade practices among
the different multilateral trade blocs in the Caribbean,
Central, and South America.  That would lay the groundwork for
their eventual integration into a single, broad free trade
zone in the southern hemisphere.
     SELA, ECLAC, and ALADI have already begun an extensive
review of the individual subregional trade agreements to
compare their similarities and disparities, which will then be
used as a guideline for future negotiations.  According to
SELA officials, the three organizations are particularly
focusing on the different clauses in each trade agreement that
deal with rules of origin, safeguards, dispute settlement
mechanisms, tariff and customs nomenclatures, immigration and
cross-border transportation, and preventive measures to avoid
unfair trade practices such as "dumping."
     According to preliminary findings, there are wide
disparities on some of these issues that will be difficult to
reconcile.  Regarding rules of origin, for example, the
CARICOM countries allow goods to be traded through the
Caribbean Community even if up to 65% of a product is made
with foreign inputs, which reflects the weak industrial base
of those nations.  In contrast, Mercosur only allows up to 40%
of the content of goods to come from foreign inputs.
     Notwithstanding the disparities, negotiations to link the
trade blocs are expected to gain force rapidly after April
1995, when trade ministers from all the countries grouped in
the different subregional pacts are scheduled to meet to
hammer out a strategy and concrete plan of action for
integration.
     "There are many common elements, but there are also many
disparities among the rules and regulations on trade
established by Mercosur, the Andean Pact, the CACM, and
CARICOM," said Juan Francisco Rojas, ALADI's secretary
general.  "Nevertheless, at all costs we must overcome the
tendencies toward fragmentation.  We must unite to better
negotiate economic integration accords with the NAFTA members
and with other extraregional economic blocs.  The process of
integration is progressing very rapidly, and huge steps
forward are likely to occur even when all the participants are
not completely prepared.  We are aware of the risks involved,
but the new trade realities unfolding among our countries make
it very difficult to take any steps backward."  [Sources:
Trade Liberalization in the Western Hemisphere, Project
Executive Summary (UN's ECLAC), November 1994; Inter Press
Service, 10/05/94, 10/07/94, 10/08/94, 10/10/94, 12/01/94,
12/08/94; Agence France-Presse, 09/20/94, 09/27/94, 10/04/94,
10/06/94, 10/07/94, 10/25/94, 11/16/94, 11/17/94, 11/26-29/94,
12/06-11/94; Spanish news service EFE, 12/10/94, 12/11/94;
Notimex, 07/03/94, 10/10/94, 10/18/94, 10/19/94, 12/07/94,
12/08/94, 12/10/94, 12/12/94; Associated Press, 09/28/94,
12/09/94, 12/10/94, 12/12/94; New York Times, 12/08-10/94,
12/12/94]


********************************
     SUMMARIES & ANALYSIS
********************************


LEADERS FROM 34 NATIONS IN THE AMERICAS & THE CARIBBEAN AGREE
TO COMPLETE TALKS ON HEMISPHERIC FREE TRADE BY YEAR 2005

                 By Carlos Navarro
[The author, an LADB staff writer, attended the summit of
Western Hemisphere heads of state in Miami as LADB's special
correspondent.  Following is his account of the events during
the summit and the resolutions that were signed by the
participants.]

     At a summit held in Miami on Dec. 9-11, leaders of 34
countries from North America, Latin America, and the Caribbean
reached an ambitious agreement to complete negotiations on a
hemispherewide free trade area by the year 2005.  In addition,
the presidents reached agreement on three other broad issues:
strengthening democracy, eradicating poverty and
discrimination, and promoting sustainable development.
     The free trade zone and the other agreements were
included in a 23-point document signed by the 34 leaders at a
ceremony on Dec. 11.  The document also covered such specific
topics as energy cooperation, support for microenterprises,
joint tourism promotion programs, and efforts to crack down on
drug trafficking (see the full summit resolutions in this
edition of Chronicle).

Concrete plan to construct "Free Trade Area of the Americas"
     Many observers considered the summit a historic event,
since this was the first time in 27 years that leaders from
the Americas and the Caribbean region gathered in one place to
discuss common issues for the entire hemisphere.  The last
such meeting took place in 1967 in Punta del Este, Uruguay.
The only hemispheric leader absent from the Miami summit was
Cuba's President Fidel Castro, who was not invited because his
government is not "democratically elected."
     In the accord to forge a hemispherewide free trade area,
the leaders agreed to conclude negotiations by the year 2005.
They also established interim dates for followup meetings to
the summit: January 1995 for initiating work programs
established at the summit, and June 1995 and March 1996 for
consultations by trade ministers of all participating nations.
     In announcing the successful results of negotiations on
Dec. 10, US Trade Representative Mickey Kantor emphasized that
the accord was based on a strong consensus among the leaders.
     "Each participant recognized that interdependency has
become a watchword for how we operate economically in this
hemisphere," Kantor said.  "Everyone drew attention to the
fact that this hemisphere has great potential for becoming the
largest trading bloc in the world, for creating jobs, for
raising our standards of living, for increasing income, for
ensuring the stability of democracy."
     The leaders did not set a target date for regionwide
economic integration to take effect, but David Gergen--a
senior adviser to US President Bill Clinton--told reporters
that the Free Trade Area of the Americas (FTAA) should be
fully operational by the year 2020 at the latest.
     "What you're seeing here is a commitment to have the
negotiations completed no later than the year 2005, with the
understanding that it may take another 15 years to implement
the agreement."
     Kantor also emphasized the urgency of immediately
beginning negotiations to construct the FTAA.  "What we don't
want to do now is lose momentum," he said, noting that six
existing multilateral agreements and several bilateral accords
in Latin America represent the starting point for
negotiations.
     These multilateral agreements are the North American Free
Trade Agreement (NAFTA), the Caribbean Community (CARICOM),
the Central American Common Market (CACM), the Andean Pact,
the Group of Three (G-3) accord, and the Southern Cone Common
Market (Mercosur).
     "All are operating at least generally in the same vein,"
said Kantor.  "They are working to eliminate non-tariff
barriers to trade, lower tariffs, and ensure protection of
intellectual property rights and investment."
     The target of 2005 for completion of negotiations was
said to represent somewhat of a compromise.  Some influential
countries--particularly Argentina--had pushed for the
completion of negotiations by the year 2000, and
implementation of the accord by the year 2015.
     Nevertheless, some Clinton administration sources told
reporters that in the pre-summit negotiations, the US
delegation deliberately did not propose any target dates for
the FTAA to take effect as a tactic to push for commitments
from participants to accelerate efforts to tear down barriers
to trade.  Still, the US was under great pressure from Latin
American countries during the summit to set a concrete target
date in order to send a signal to participants that the Miami
summit would be more than just a "ceremonial" gesture.
     "The United States has been criticized in the past by
Latin American nations for lofty rhetoric and not enough
follow-through," said Kantor, who agreed that, in the end, the
2005 date for completion of negotiations was important to make
the rhetoric real.
     Meantime, Christine Stewart--the Canadian Foreign
Ministry's secretary of state for Latin America and Africa--
emphasized that while the agreement spelled out specific
steps, this would not lead to the creation of new
bureaucracies.
     "We do not want to set up a new organization," she said,
in a reference to the regional organizations and forums that
would be commissioned to oversee the FTAA negotiations.
"Rather, we want to support those organizations already in
existence."  Stewart cited the Organization of American States
(OAS), the Pan-American Health Organization (PAHO), and the
Inter-American Development Bank (IDB) as examples.
     For his part, Isaac Cohen, a representative from the
Washington office of the UN's Economic Commission on Latin
America and the Caribbean (ECLAC), told the LADB that his
organization viewed the results of the summit very favorably.
     ECLAC, along with the Latin American Economic System
(Sistema Economico Latinoamericano, SELA) and the Latin
American Integration Association (Asociacion Latinoamericana
de Integracion, ALADI), have been leading the effort toward
regionwide economic integration.  In fact, the three
organizations had sponsored a conference of representatives of
the major subregional trade blocs in the hemisphere in October
of this year to study the disparities and similarities among
the individual multilateral trade accords.  According to
Cohen, the agreement reached by the 34 heads of state in
Miami, in general terms, fits within the framework of the
integration plan proposed by representatives of the
subregional trade blocs at the October meeting, which was held
in Ecuador (see other article in this edition of Chronicle).
     "We are especially pleased about the decision (at the
Miami summit) to hold at least annual consultations among
trade ministers," said Cohen.  The summit leaders approved a
timetable whereby trade ministers from throughout the
hemisphere will meet in June of 1995 and again in March of
1996, but Cohen said he expected the ministers to meet at
least on an annual basis thereafter.
     Cohen also praised the summit participants for reaching
an agreement on environmentally sustainable development, which
he said is one of the ultimate goals of ECLAC.  However, Cohen
said he would not make a more definite assessment of the full
summit accords until he had an opportunity to more carefully
study the 23 proposals contained therein.
     Similarly, OAS Secretary-General Cesar Gaviria praised
the 34 summit participants for reaching an agreement that went
beyond symbolism.  "I am very impressed that they were able to
identify such a detailed plan of action," he said during an
informal interview with reporters after the final plenary
session.
     Gaviria stressed that one major strength of the agreement
was that consultations would begin immediately.  "In 18 months
we will be able to meet again to evaluate the accomplishments
reached at this summit," he said.
     In virtually all public statements, the leaders made
extraordinary efforts to present an image of unity and
harmony.  Even when publicly discussing specific concerns, the
leaders accompanied their criticism with praise for the US
administration and other organizers of the summit.

Leaders of smaller economies request special protection
     One of the recurring themes brought up by leaders of
lesser-developed countries was the need to set up guidelines
that would protect their economies from becoming overrun by
imports from the larger countries in the region once the FTAA
takes hold.  In addition, many requested specific concessions
and assistance programs from the more developed countries.
     For example, in a press conference a few hours before the
start of the summit on Dec. 9, Guyana's Prime Minister Cheddi
Jaggan announced he would lead a push for specific steps to be
included in the FTAA that would help the smaller economies to
better compete in the free trade zone.  Such measures would
include the creation of a special development fund for the
weaker economies and a comprehensive program of debt
rescheduling, according to Jaggan.
     In fact, the US administration made special efforts to
demonstrate its support for the smaller Caribbean countries
during the summit.  In a meeting with Caribbean leaders, for
instance, US Trade Representative Kantor pledged US support
for their efforts to force the European Union (EU) to ease
restrictions on imports of Caribbean bananas.  The EU, citing
a need to protect banana producers in the Canary Islands and
other European dependencies, has placed tight restrictions on
imports of bananas from Caribbean countries.
     Kantor said US technical advisers would work with the
Caribbean countries to determine if the EU is engaged in
unfair trade practices.
     Caribbean leaders were obviously pleased with the US
pledge of support in the matter.
     "We are pleased about the progress that has been made at
the summit to resolve the problems that threaten the Caribbean
banana industry," said Barbados Prime Minister Owen Arthur,
who presented the position of the Caribbean nations at the
final plenary session of the summit.  "For some micro-
economies of the Caribbean, the banana industry is not just
the production of a commodity, but rather embodies their
entire economic culture."
     On the other hand, Arthur urged the US and the other
larger economies to continue to take into account the need of
the smaller countries.  "Our challenge now is to ensure that,
as we implement the Plan of Action and create our first
hemispheric free trade area, we put in place measures to
ensure that all our peoples share equitably in the benefits,"
he said.
     Apart from the discussion of assisting the smaller
economies, the summit participants also placed strong emphasis
on the commitment of regional leaders to "sustainable
development."  That broad term was used to describe plans to
protect the environment and to provide support for educational
programs, technical training, and improvement of health
services throughout Latin America and the Caribbean.
     In fact, during the final plenary session at the summit,
the Inter-American Development (IDB) announced the allocation
of up to US$5 billion in new funds to support the goals of the
summit in education, health, and the environment.
     "We will collaborate widely with the OAS and other
regional organizations in all matters that pertain to these
integration objectives," said IDB president Enrique Iglesias
in an address to the leaders at the end of the summit.
     Additionally, Iglesias announced a separate fund of
US$500 million to support microenterprises and small
businesses throughout the Americas.  "In the past, we have
assisted hundreds of thousands of small-business owners," said
Iglesias.  "The Bank is now making a commitment to provide
assistance for millions of these small businesses."

Three specific environmental proposals offered
     Meantime, US Environmental Protection Agency (EPA)
administrator Carol Browner told reporters that the leaders,
in the 23-point document, had agreed on three specific
environmental actions to be addressed almost immediately
through a so-called "Partnership for Pollution Prevention."
These three proposals were:
     * a commitment to a hemispherewide phase out of lead in
gasoline;
     * a cooperation agreement that regulates the proper
management of pesticides to protect food supplies;
     * a commitment to expand environmental laws, technical
capacity, and enforcement measures throughout the hemisphere.
     "Environmental problems do not recognize political
boundaries, so working together on these issues is absolutely
essential," Browner said.  "The Clinton administration has
long held that environmental protection and economic
development must go hand in hand, that they are inextricably
linked.  We must use our resources frugally instead of
needlessly depleting them."
     Browner told LADB that a strong emphasis will also be
placed on attracting private investment in environmental
infrastructure projects, such as construction of wastewater
and solid-waste treatment plants.
     "We have already seen with the passage of NAFTA that
firms from the US and other member countries are building
private wastewater treatment facilities in Mexico," she said.
"We think that this kind of opportunity will exist across the
hemisphere."
     For her part, Katie McGinty, President Clinton's adviser
on environmental policy, told reporters that summit
participants agreed to hold a follow-up meeting in Bolivia in
1996 to continue discussing sustainable development issues.
In addition, ministerial-level consultations will be held on
an annual basis after the Bolivian conference.
     The basis for negotiating the broad agreement for
pollution prevention came out of an accord that the Clinton
administration forged separately with the seven Central
American countries.  Negotiations on this agreement--dubbed
the Central America-USA Agreement (Conjunto Centroamericano-
USA, CONCAUSA)--were begun in late 1993 and finalized at the
summit.
     The environmental actions proposed in CONCAUSA are
virtually identical to the broad agreement signed by all the
presidents at the summit: to phase out leaded gasoline,
strengthen environmental legislation and enforcement measures,
and support protected wild habitats from Guatemala to Panama.
     The CONCAUSA accord was signed in a ceremony on Dec. 10
by Presidents Clinton (US), Ramiro de Leon Carpio (Guatemala),
Roberto Reina (Honduras), Armando Calderon Sol (El Salvador),
Ernesto Perez Balladares (Panama), Jose Maria Figueres (Costa
Rica), Violeta Chamorro (Nicaragua), and Prime Minister Manuel
Esquivel (Belize).
     "This is an effort by the Central American family of
nations and their friends," said Figueres, who credited de
Leon Carpio for first proposing the environmental agreement
almost a year ago.
     The leaders said a US pledge of financial and technical
support for CONCAUSA will be supplemented by funds from the
Global Environment Fund, which pledged US$15 million, and the
IDB, which allocated another US$25 million.
     On the same day of the CONCAUSA announcement, the
Canadian Foreign Affairs Ministry announced the allocation of
a US$1.5 million grant over three years to support the newly
formed Central American Alliance for Sustainable Development.
In addition, Canada announced a separate three-year grant of
US$500,000 for programs in Central America to create more
opportunities for women and promote equal rights.
     Figueres also took the opportunity to emphasize the view
that countries in his region were seeking equitable treatment
in the trade-integration process.
     "Central Americans believe that free trade is a right and
not a concession awarded to the poorer countries," Figueres
said at the signing ceremony for CONCAUSA.

Chile invited to join NAFTA
     Another major announcement that came out of the
conference was a decision by the US, Canada, and Mexico to
begin negotiations with Chile to admit that country to NAFTA.
     In a press conference held jointly by Prime Minister Jean
Chretien of Canada and Presidents Clinton of the US, Ernesto
Zedillo of Mexico, and Eduardo Frei of Chile, the four leaders
stressed that the effort to include Chile in NAFTA is part of
the overall effort for economic integration in the hemisphere.
     According to the announcement, technical discussions on
Chile's accession to NAFTA will be conducted between now and
May 31, 1995.  After that date, the four countries are
scheduled to begin formal negotiations.
     The decision to extend to Chile the opportunity to join
NAFTA had been widely expected, since that country had already
taken several steps consistent with the agreement, such as
selling off more than 400 state enterprises, slashing import
tariffs, and promoting foreign investment.
     Indeed, the decision to invite Chile into NAFTA is
expected to provide the first test on how much influence
President Clinton will have with the new US Congress, where
the Republican Party now has a majority.  Clinton is expected
to formally request authority from Congress sometime in
January to begin formal negotiations with Chile.
     House Democrats, led by minority leader Richard Gephardt
(D-Missouri) and minority whip David Bonior (D-Michigan), are
seeking provisions--even stronger than those existing in the
current text of NAFTA--that would use trade sanctions to
enforce environmental protection and worker rights.  On the
other hand, many Republican legislators oppose such linkages,
leaving Clinton in a difficult bargaining position.
     In an editorial published on Dec. 11, the Washington Post
questioned whether the Clinton administration will ultimately
have the influence needed at home and overseas to shepherd
through the hemispherewide free trade agreement.
     "Whether the summit will be the starting point for an
alignment of trade and investment policies will not become
clear for some time," said the newspaper.  "Forging a free
trade zone out of the disparate countries is far from easy.
It must take into account the interests of Caribbean mini-
states and of countries like Brazil and Mexico, which have the
potential to become major industrial powers."
      A handful of ministerial-level meetings were scheduled
over the next several years, but according to some observers,
another full presidential summit is not likely until sometime
in 1997.  Chile has offered to host that summit.


DOCUMENT: SUMMIT OF THE AMERICAS, "DECLARATION OF PRINCIPLES"

     [At the summit of Western Hemisphere heads of state, held
in Miami Dec. 10-11, the participating leaders signed a
general "Declaration of Principles," and a detailed "Plan of
Action" to carry out the commitments agreed to by conference
participants.  Following is the text of the "Declaration of
Principles."]

     The elected Heads of State and Government of the Americas
are committed to advance the prosperity, democratic values and
institutions, and security of our Hemisphere.  For the first
time in history, the Americas are a community of democratic
societies.  Although faced with differing development
challenges, the Americas are united in pursuing prosperity
through open markets, hemispheric integration, and sustainable
development.  We are determined to consolidate and advance
closer bonds of cooperation and to transform our aspirations
into concrete realities.
     We reiterate our firm adherence to the principles of
international law and the purposes and principles enshrined in
the United Nations Charter and in the Charter of the
Organization of American States (OAS), including the
principles of the sovereign equality of states, non-
intervention, self-determination, and the peaceful resolution
of disputes.  We recognize the heterogeneity and diversity of
our resources and cultures, just as we are convinced that we
can advance our shared interests and values by building strong
partnerships.

Preserve & Strengthen Community of Democracies of the Americas
    The Charter of the OAS establishes that representative
democracy is indispensable for the stability, peace and
development of the region.  It is the sole political system
which guarantees respect for human rights and the rule of law,
it safeguards cultural diversity, pluralism, respect for the
rights of minorities, and peace within and among nations.
Democracy is based, among other fundamentals, on free and
transparent elections and includes the right of all citizens
to participate in government.  Democracy and development
reinforce one another.
    We reaffirm our commitment to preserve and strengthen our
democratic systems for the benefit of all people of the
Hemisphere.  We will work through the appropriate bodies of
the OAS to strengthen democratic institutions and promote and
defend constitutional democratic rule, in accordance with the
OAS Charter.  We endorse OAS efforts to enhance peace and the
democratic, social, and economic stability of the region.
    We recognize that our people earnestly seek greater
responsiveness and efficiency from our respective governments.
Democracy is strengthened by the modernization of the state,
including reforms that streamline operations, reduce and
simplify government rules and procedures, and make democratic
institutions more transparent and accountable.  Deeming it
essential that justice should be accessible in an efficient
and expeditious way to all sectors of society, we affirm that
an independent judiciary is a critical element of an effective
legal system and lasting democracy.  Our ultimate goal is to
better meet the needs of the population, especially the needs
of women and the most vulnerable groups, including indigenous
people, the disabled, children, the aged, and minorities.
     Effective democracy requires a comprehensive attack on
corruption as a factor of social disintegration and distortion
of the economic system that undermines the legitimacy of
political institutions.
     Recognizing the pernicious effects of organized crime and
illegal narcotics on our economies, ethical values, public
health, and the social fabric, we will join the battle against
the consumption, production, trafficking and distribution of
illegal drugs, as well as against money laundering and the
illicit trafficking in arms and chemical precursors.  We will
also cooperate to create viable alternative development
strategies in those countries in which illicit crops are
grown.  Cooperation should be extended to international and
national programs aimed at curbing the production, use and
trafficking of illicit drugs and the rehabilitation of
addicts.
    We condemn terrorism in all its forms, and we will, using
all legal means, combat terrorist acts anywhere in the
Americas with unity and vigor.
    Recognizing the important contribution of individuals and
associations in effective democratic government and in the
enhancement of cooperation among the people of the Hemisphere,
we will facilitate fuller participation of our people in
political, economic and social activity, in accordance with
national legislation.

Promote Prosperity Through Economic Integration and Free Trade
     Our continued economic progress depends on sound economic
policies, sustainable development, and dynamic private
sectors.  A key to prosperity is trade without barriers,
without subsidies, without unfair practices, and with an
increasing stream of productive investments.  Eliminating
impediments to market access for goods and services among our
countries will foster our economic growth.  A growing world
economy will also enhance our domestic prosperity.  Free trade
and increased economic integration are key factors for raising
standards of living, improving the working conditions of
people in the Americas and better protecting the environment.
     We, therefore, resolve to begin immediately to construct
the "Free Trade Area of the Americas" (FTAA) in which barriers
to trade and investment will be progressively eliminated.  We
further resolve to conclude the negotiation of the "Free Trade
Area of the Americas" no later than 2005, and agree that
concrete progress toward the attainment of this objective will
be made by the end of this Century.  We recognize the progress
that already has been realized through the unilateral
undertakings of each of our nations and the subregional trade
arrangements in our Hemisphere.  We will build on existing
subregional and bilateral arrangements in order to broaden and
deepen hemispheric economic integration and to bring the
agreements together.
     Aware that investment is the main engine for growth in
the Hemisphere, we will encourage such investment by
cooperating to build more open, transparent and integrated
markets.  In this regard, we are committed to create
strengthened mechanisms that promote and protect the flow of
productive investment in the Hemisphere, and to promote the
development and progressive integration of capital markets.
     To advance economic integration and free trade, we will
work, with cooperation and financing from the private sector
and international financial institutions, to create a
hemispheric infrastructure.  This process requires a
cooperative effort in fields such as telecommunications,
energy and transportation, which will permit the efficient
movement of the goods, services, capital, information and
technology that are the foundations of prosperity.
     We recognize that despite the substantial progress in
dealing with debt problems in the Hemisphere, high foreign
debt burdens still hinder the development of some of our
countries.
     We recognize that economic integration and the creation
of a free trade area will be complex endeavors, particularly
in view of the wide differences in the levels of development
and size of economies existing in our Hemisphere.  We will
remain cognizant of these differences as we work toward
economic integration in the Hemisphere.  We look to our own
resources, ingenuity, and individual capacities as well as to
the international community to help us achieve our goals.

Eradicate Poverty and Discrimination In Our Hemisphere
     It is politically intolerable and morally unacceptable
that some segments of our populations are marginalized and do
not share fully in the benefits of growth.  With an aim of
attaining greater social justice for all our people, we pledge
to work individually and collectively to improve access to
quality education and primary health care and to eradicate
extreme poverty and illiteracy.  The fruits of democratic
stability and economic growth must be accessible to all,
without discrimination by race, gender, national origin or
religious affiliation.
     In observance of the International Decade of the World's
Indigenous People, we will focus our energies on improving the
exercise of democratic rights and the access to social
services by indigenous people and their communities.
    Aware that widely shared prosperity contributes to
hemispheric stability, lasting peace and democracy, we
acknowledge our common interest in creating employment
opportunities that improve the incomes, wages and working
conditions of all our people.  We will invest in people so
that individuals throughout the Hemisphere have the
opportunity to realize their full potential.
    Strengthening the role of women in all aspects of
political, social and economic life in our countries is
essential to reduce poverty and social inequalities and to
enhance democracy and sustainable development.

Guarantee Sustainable Development & Conserve Our Natural
Environment for Future Generations
    Social progress and economic prosperity can be sustained
only if our people live in a healthy environment and our
ecosystems and natural resources are managed carefully and
responsibly.  To advance and implement the commitments made at
the 1992 United Nations Conference on Environment and
Development, held in Rio de Janeiro, and the 1994 Global
Conference on the Sustainable Development of Small Island
Developing States, held in Barbados, we will create
cooperative partnerships to strengthen our capacity to prevent
and control pollution, to protect ecosystems and use our
biological resources on a sustainable basis, and to encourage
clean, efficient and sustainable energy production and use.
To benefit future generations through environmental
conservation, including the rational use of our ecosystems,
natural resources and biological heritage, we will continue to
pursue technological, financial and other forms of
cooperation.
     We will advance our social well-being and economic
prosperity in ways that are fully cognizant of our impact on
the environment.  We agree to support the Central American
Alliance for Sustainable Development, which seeks to
strengthen those democracies by promoting regional economic
and social prosperity and sound environmental management.  In
this context, we support the convening of other regional
meetings on sustainable development.
                    *****
     Our Declaration constitutes a comprehensive and mutually
reinforcing set of commitments for concrete results.  In
accord with the appended Plan of Action, and recognizing our
different national capabilities and our different legal
systems, we pledge to implement them without delay.
     We call upon the OAS and the Inter-American Development
Bank to assist countries in implementing our pledges, drawing
significantly upon the Pan American Health Organization and
the United Nations Economic Commission for Latin America and
the Caribbean as well as sub-regional organizations for
integration.
     To give continuity to efforts fostering national
political involvement, we will convene specific high-level
meetings to address, among others, topics such as trade and
commerce, capital markets, labor, energy, education,
transportation, telecommunications, counter-narcotics and
other anti-crime initiatives, sustainable development, health,
and science and technology.
    To assure public engagement and commitment, we invite the
cooperation and participation of the private sector, labor,
political parties, academic institutions and other
non-governmental actors and organizations in both our national
and regional efforts, thus strengthening the partnership
between governments and society.
                     *****
     Our thirty-four nations share a fervent commitment to
democratic practices, economic integration, and social
justice.  Our people are better able than ever to express
their aspirations and to learn from one another.  The
conditions for hemispheric cooperation are propitious.
Therefore, on behalf of all our people, in whose name we affix
our signatures to this Declaration, we seize this historic
opportunity to create a Partnership for Development and
Prosperity in the Americas.


DOCUMENT: SUMMIT OF THE AMERICAS, "PLAN OF ACTION"

     [At the summit of Western Hemisphere heads of state, held
in Miami Dec. 10-11, the participating leaders signed a
general "Declaration of Principles," and a detailed "Plan of
Action" to carry out the commitments agreed to by conference
participants.  Following is the text of those sections of the
"Plan of Action" that deal with economic agreements, which
include Promoting Prosperity through Economic Integration and
Free Trade, Eradicating Poverty and Discrimination, and
Guaranteeing Sustainable Development and Conserving the
Natural Environment for Future Generations.
     For those sections of the "Plan of Action" that deal with
political agreements, see NotiSur - Latin American Political
Affairs, 12/16/94.]

     The heads of state and government participating in the
1994 Summit of the Americas in Miami, Florida, desirous of
furthering the broad objectives set forth in their Declaration
of Principles and mindful of the need for practical progress
on the vital tasks of enhancing democracy, promoting
development, achieving economic integration and free trade,
improving the lives of their people, and protecting the
natural environment for future generations, affirm their
commitment to this Plan of Action.


PROMOTE PROSPERITY THROUGH ECONOMIC INTEGRATION & FREE TRADE

9. Free Trade in the Americas
     1) While pursuing economic integration and free trade in
the Hemisphere, we reinforce our strong commitment to
multilateral rules and disciplines.  We endorse full and rapid
implementation of the Uruguay Round, active multilateral
negotiations in the World Trade Organization, bilateral and
subregional trade agreements, and other trade arrangements
that are consistent with the provisions of the GATT/WTO and
that do not raise barriers to other nations.
     2) Extraordinary achievements have been made by countries
of the Hemisphere in trade liberalization and subregional
integration.  Free trade and increased economic integration
are key factors for sustainable development.  This will be
furthered as we strive to make our trade liberalization and
environmental policies mutually supportive, taking into
account efforts undertaken by the GATT/WTO and other
international organizations.  As economic integration in the
Hemisphere proceeds, we will further secure the observance and
promotion of worker rights, as defined by appropriate
international conventions.  We will avoid disguised
restrictions on trade, in accordance with the GATT/WTO and
other international obligations.
     3) We will strive to maximize market openness through
high levels of discipline as we build upon existing agreements
in the Hemisphere.  We also will strive for balanced and
comprehensive agreements, including among others: tariffs and
non-tariff barriers affecting trade in goods and services;
agriculture; subsidies; investment; intellectual property
rights; government procurement; technical barriers to trade;
safeguards; rules of origin; antidumping and countervailing
duties; sanitary and phytosanitary standards and procedures;
dispute resolution; and competition policy.
    4) We recognize that decisions on trade agreements remain
a sovereign right of each nation.  In addition, recognizing
the importance of effective enforcement of international
commitments, each nation will take the necessary action, in
accordance with its own legislation and procedures, to
implement the agreements in the areas covered by this Plan of
Action.
    5) As we work to achieve the "Free Trade Area of the
Americas," opportunities such as technical assistance will be
provided to facilitate the integration of the smaller
economies and increase their level of development.

Immediate Action Agenda
    We direct our ministers responsible for trade to take the
following concrete initial steps to achieve the "Free Trade
Area of the Americas"

     6) With the objective of ensuring full and complete
discussion among the parties to the various trade agreements
in the Hemisphere, we direct that meetings be held under
existing trade and investment fora.  Members of these fora
will determine areas of commonality and divergence in the
particular agreements under review and should consider the
means of improving disciplines among them and bringing them
together.  We further direct that members of these fora inform
ministers of the status of their discussions and make
recommendations for achieving the "Free Trade Area of the
Americas."
     7) Transparency in, and a clear understanding of, the
subregional and bilateral agreements achieved to date among
the nations in the Hemisphere are critical for advancing trade
and investment integration in the Americas.  We will direct
the OAS Special Committee on Trade, with the support of the
IDB, ECLAC, and other specialized regional and subregional
organizations, to assist in the systematization of data in the
region and to continue its work on studying economic
integration arrangements in the Hemisphere, including brief
comparative descriptions of the obligations in each of the
Hemisphere's existing trade agreements.  We will further
direct the Special Committee on Trade to prepare a report of
its work by June 1995 for the meeting of ministers.
     8) We direct our ministers responsible for trade to: (a)
review the progress of work undertaken in the fora noted in
paragraphs 6 and 7; (b) provide guidance with respect to
further work; and (c) consider areas for immediate
attention-such as customs facilitation and product testing and
certification with a view to mutual recognition
agreements'that could be taken up in the appropriate fora.
     9) Therefore, today we launch the "Free Trade Area of the
Americas" by initiating the following process.  We will direct
the OAS to assist the host country in arranging the
ministerial meetings.

     * January 1995: Initiation of work programs and
       establishment of schedules in the fora in paragraph 6
       and in the Special Committee on Trade.

     * June 1995: Meeting of Ministers responsible for trade.
       -preliminary report on status of work in the fora
        described in paragraph 6.
       -preliminary Special Committee on Trade report.
       -areas for immediate consideration.

     * March 1996: Meeting of Ministers responsible for trade.
       -final report to ministers by the Special Committee on
        Trade.
       -final reports to ministers from the fora described in
        paragraph 6.
       -timetable for further work.

10. Capital Markets Development and Liberalization
     The availability of capital at competitive rates is
essential to finance private sector investment'a vital
ingredient in economic development.  Developing, liberalizing
and integrating financial markets domestically and
internationally, increasing transparency, and establishing
sound, comparable supervision and regulation of banking and
securities markets will help to reduce the cost of capital by
enhancing investor and depositor confidence.

Governments will:
     * Form a Committee on Hemispheric Financial Issues to
examine steps to promote the liberalization of capital
movements and the progressive integration of capital markets,
including, if deemed appropriate, the negotiation of common
guidelines on capital movements that would provide for their
progressive liberalization.
     * Prepare, in cooperation with the Inter-American
Development Bank, a comprehensive list of national capital
regulations in order to promote transparency and support the
discussions in the Committee on Hemispheric Financial Issues.
     * Support the cooperative endeavors of the Association of
Latin American and Caribbean Bank Supervisors and the council
of Securities Regulators of the Americas to provide sound
supervision and regulation that support the development and
progressive integration of markets.
     The Committee on Hemispheric Financial Issues should also
review problems of debt in the Hemisphere, taking account of
ongoing work and drawing, as appropriate, on a broad range of
expertise.

11.  Hemispheric Infrastructure
     Development in this Hemisphere depends on urgent
infrastructure measures, including the priority allocation of
financial resources, in accordance with national legislation
and with the participation of both the public and private
sectors.  Strengthening the flow of private productive capital
to economically and environmentally sound projects has become
increasingly vital to countries throughout the Hemisphere as
the growth of official sources of capital has failed to keep
pace with the area's needs.

Governments will:
    * Charge multilateral development banks to work with
governments and, as appropriate, private concerns, to develop
mechanisms to deal with lending and investment issues.
    * Draw on other regional and sub-regional experiences
within the Hemisphere to support infrastructure development.
    * Governments that so wish will develop suitable
mechanisms, including multilateral and bilateral commitments
on regulatory and legal rules and practices, to encourage
private investment, both domestic and foreign, in national and
transboundary infrastructure projects.

12. Energy Cooperation
    The nations of the Hemisphere have begun a new era of
economic growth.  This new era is based on greater economic
cooperation, freer trade, and open markets.  Sustainable
economic development requires hemispheric cooperation in the
field of energy.

Governments will:
    * Convene a follow-up hemispheric officials' meeting in
the first semester of 1995 to encourage cooperation to study
ways to develop the energy industry within the Hemisphere,
consistent with the least cost national energy strategies and
the activities described in the "Partnership for Sustainable
Energy use" in the following areas:
     --Consideration of ways to use the energy sector to
promote sustainable economic growth.
     --Cooperation to study ways to optimize and facilitate
the financing mechanisms of international financial
institutions to support the development of projects in the
energy sector, especially including those pertaining to
enhancement of efficiency in the use of energy and to
non-conventional renewable energy.
     --Cooperation to promote capital and to foster the use of
innovative financial mechanisms to increase investment in the
energy sector and the enhancement of efficiency in the use of
energy and non-conventional renewable energy, in accordance
with each country's legislation and developmental needs.
     --Promotion of the use of efficient and non-polluting
energy technologies, both conventional and renewable, leading
to a higher degree of knowledge and technical expertise in
this area.
     --Consideration of the enhancement of ongoing efforts to
establish electric and other energy facilities in accordance
with domestic regulatory frameworks and, where appropriate,
under sub-regional agreements.

    (Note: This initiative is integrally linked with the
Partnership for Sustainable Energy Use item).

13. Telecommunications and Information Infrastructure
     A country's information infrastructure'
telecommunications, information technology, and
broadcasting'is an essential component of political, economic,
social and cultural development.  The information
infrastructure development needs in the Americas are immense.
The governments of the Americas intend to meet these needs by
engaging in multiple actions, where consistent with their
respective governing laws, such as: encouraging private sector
investment to increase participation in the telecommunications
and information infrastructure sectors; promoting competition;
implementing flexible regulatory regimes; stimulating
diversity of content, including cultural and linguistic
diversity; providing access to information networks for
service and information providers; and ensuring universal
service, so that the benefits of the information
infrastructure will be available to all members of our
societies.

Governments will:
     * Engage in ongoing discussions at the international
level of the actions referred to above and endeavor to take
those actions in their own countries, taking account of
domestic conditions and circumstances.
     * Undertake efforts to make government information more
publicly available via electronic means.
     * Review the availability and interoperability of
connections to international networks that facilitate trade,
improve education and improve access to health care.
     * Encourage major universities, libraries, hospitals and
government agencies to have access to these networks, bolting
on the work of the OAS Hemisphere-Wide Inter-University
Scientific and Technological Information Network.
     * Via the OAS Inter-American Telecommunications
Commission (CITEL), and in coordination with the sub-regional
telecommunications organizations, develop and carry out a work
program to:
     --Evaluate regulatory, technical and legal means to
promote liberalization, common standards, interoperability of
networks and compatible use of the radio spectrum.
     --Examine ways to promote greater consistency of the
certification processes for telecommunications equipment among
member countries.
     --Develop regional guidelines for the provision of
international value-added network services.
     * Support a meeting by 1996, coordinated by CITEL, of
senior telecommunications officials to conduct further
discussions of the above actions.

14. Cooperation in Science and Technology
     There is a need to re-assess the on-going interaction
among the region's science and technology (S&T;) infrastructure
and cooperative mechanisms; to provide impetus for improved
cooperation; to reduce barriers to collaboration; to augment
the demand for technology; and to disseminate information
about technological opportunities using new advances in
information technology; and generally to improve
communications among the key S&T; organizations, researchers in
the region, and growing technology-based small and
medium-sized enterprises.
     The commitment of the countries of the Americas to
non-proliferation has gained new momentum with the acceptance
of the international safeguard regime by some of our
countries.  The outstanding progress achieved in this field is
to be commended and should contribute to enhanced
opportunities for cooperation in the area of advanced goods
and technologies.

Governments will:
     * Convene a meeting of ministers responsible for science
and technology in the Hemisphere within the next year to
assess progress and to promote the Bolivar Programme and the
OAS Common Market of Scientific and Technological Knowledge
(MERCOCYT) program, to provide the necessary support to
improve scientific partnerships and technological ventures in
the region, and to explore the possibility of establishing a
council on science and technology.
     * Use existing multilateral mechanisms in the region to
address a wide number of common S&T; interests, including
enhanced professional technical training, development and
implementation of national policies and regional programs,
dissemination and standardization of science and technology
(including metrology and other technical norms), environmental
technology development, and more effective partnerships to
promote learning and competitiveness.
     * Stimulate greater S&T; interaction in the Hemisphere and
support efforts already undertaken in other fora, including
the Inter-American Institute for Global Change Research, and
the International Research Institute for Climate Protection.
Governments will serve to advance and communicate new
initiatives such as the Global Learning and Observations to
Benefit the Environment (GLOBE) program.
     * Confirm their interest in participating in new
initiatives driven by a demand from private sector and
non-government interests in technological opportunities.
     * Confirm their national commitments to share S&T;
information with others in the Hemisphere, in accord with
their respective laws, and to expand cooperation in scientific
and environmental research.

15. Tourism
     Tourism is important to our economies and valuable in
promoting understanding among the people of the Americas.

Governments will:
     * Undertake initiatives to stimulate tourism in the
Hemisphere.


III. ERADICATE POVERTY AND DISCRIMINATION IN OUR HEMISPHERE

     Large segments of society in our Hemisphere, particularly
women, minorities, the disabled, indigenous groups, refugees
and displaced persons, have not been equipped to participate
fully in economic life.  Nearly one-half of the Hemisphere's
population still lives in poverty.  Expanded participation of
the poor in the region's economies, access to productive
resources, appropriate support for social safety nets and
increased human capital investments are important mechanisms
to help eradicate poverty.  In pursuit of these objectives, we
reaffirm our support for the strategies contained within the
"Commitment on a Partnership for Development and Struggle to
Overcome Extreme Poverty" adopted by the OAS General Assembly.
     The World Summit for Social Development to be held in
Copenhagen in March 1995, as well as the United Nations World
Conference on Women in Beijing in September 1995, will provide
unique opportunities to define strategies to promote social
integration, productive employment and the eradication of
poverty.

16. Universal Access to Education
     Universal literacy and access to education at all levels,
without distinction by race, national origin or gender, are an
indispensable basis for sustainable social and cultural
development, economic growth and democratic stability.

Governments will:
     * Guarantee universal access to quality primary
education, working with public and private sectors and
non-governmental actors, and with the support of multinational
institutions.  In particular, governments will seek to attain
by the year 2010 a primary completion rate of 100 per cent and
a secondary enrollment rate of at least 75 percent, and to
prepare programs to eradicate illiteracy, prevent truancy and
improve human resources training.
     * Promote, with the support of international financial
institutions and the private sector, worker professional
training as well as adult education, incorporating efforts to
make such education more relevant to the needs of the market
and employers.
     * Improve human resources training, and technical,
professional and teacher training, which are vital for the
enhancement of quality and equity of education within the
Hemisphere.
     * Increase access to and strengthen the quality of higher
education and promote cooperation among such institutions in
producing the scientific and technological knowledge that is
necessary for sustainable development.
     * Support strategies to overcome nutritional deficiencies
of primary school children in order to enhance their learning
ability.
     * Support decentralization including assurance of
adequate financing and broad participation by parents,
educators, community leaders and government officials in
education decision making.
     * Review existing regional and hemispheric training
programs and make them more responsive to current needs.
     * Create a hemispheric partnership, working through
existing organizations, to provide a consultative forum for
governments, non-governmental actors, the business community,
donors, and international organizations to reform educational
policies and focus resources more efficiently.
     * Urge the March 1995 World Summit for Social Development
and the September 1995 Fourth World Conference on Women to
address the issue of universal access to education.

17. Equitable Access to Basic Health Services
     Despite impressive gains in the Hemisphere, limitations
on health services access and quality have resulted in
persistently high child and maternal mortality, particularly
among the rural poor and indigenous groups.

Governments will:
     * Endorse the maternal and child health objectives of the
1990 World Summit for Children, the 1994 Narino Accord and the
1994 International Conference on Population and Development,
and reaffirm their commitment to reduce child mortality by
one-third and maternal mortality by one-half from l99O levels
by the year 2000.
     * Endorse a basic package of clinical, preventive and
public health services consistent with World Health
Organization, Pan American Health Organization (PAHO) and
World Bank recommendations and with the Program of Action
agreed to at the 1994 International Conference on Population
and Development.  The package will address child, maternal and
reproductive health interventions, including prenatal,
delivery and postnatal care, family planning information and
services, and HIV/AIDS prevention, as well as immunizations
and programs combating the other major causes of infant
mortality.  The plans and programs will be developed according
to a mechanism to be decided upon by each country.
     * Develop or update country action plans or programs for
reforms to achieve child, maternal and reproductive health
goals and ensure universal, non-discriminatory access to basic
services, including health education and preventive health
care programs.  The plans and programs will be developed
according to a mechanism to be decided upon by each country.
     Reforms would encompass essential community-based
services for the poor, the disabled, and indigenous groups;
stronger public health infrastructure; alternative means of
financing, managing and providing services; quality assurance;
and greater use of non-governmental actors and organizations.
     * Strengthen the existing Inter-American Network on
Health Economics and Financing, which serves as an
international forum for sharing technical expertise,
information and experience, to focus on health reform efforts.
The network gathers government officials, representatives of
the private sector, non-governmental institutions and actors,
donors and scholars for policy discussions, analysis, training
and other activities to advance reform; strengthens national
capabilities in this critical area; and fosters
Hemisphere-wide cooperation.
     * Convene a special meeting of hemispheric governments
with interested donors and international technical agencies to
be hosted by the IDB, the World Bank and P'HO to establish the
framework for health reform mechanisms, to define PAHO's role
in monitoring the regional implementation of country plans and
programs, and to plan strengthening of the network, including
the cosponsors' contributions to it.
     * Take the opportunity of the annual PAHO Directing
Council Meeting of Western Hemisphere Ministers of Health,
with participation of the IDB and donors, to develop a program
to combat endemic and communicable diseases as well as a
program to prevent the spread of HIV/AIDS, and to identify
sources of funding.
     * Urge the March 1995 World Summit for Social Development
and the September 1995 Fourth World Conference on Women to
address the issue of access to health services.

18. Strengthening the Role of Women in Society
     The strengthening of the role of women in society is of
fundamental importance not only for their own complete
fulfillment within a framework of equality and fairness, but
to achieve true sustainable development.  It is essential to
strengthen policies and programs that improve and broaden the
participation of women in all spheres of political, social,
and economic life and that improve their access to the basic
resources needed for the full exercise of their fundamental
rights.  Attending to the needs of women means, to a great
extent, contributing to the reduction of poverty and social
inequalities.

Governments will:
     * Recognize and give full respect for all rights of women
as an essential condition for their development as individuals
and for the creation of a more just, united and peaceful
society.  For that purpose, policies to ensure that women
enjoy full legal and civil rights protection will be promoted.
     * Include a gender focus in development planning and
cooperation projects and promote the fulfillment of women's
potential, enhancing their productivity through education,
training, skill development and employment.
     * Promote the participation of women in the
decision-making process in all spheres of political, social
and economic life.
     * Undertake appropriate measures to address and reduce
violence against women.
     * Adopt appropriate measures to improve women's ability
to earn income beyond traditional occupations, achieve
economic self-reliance, and ensure women's equal access to the
labor market at all employment levels, the social security
systems, the credit system, and the acquisition of goods and
land.
     * Cooperate fully with the recently-appointed Special
Rapporteur on Violence Against Women, its Causes and
Consequences, of the United Nations Commission on Human
Rights.
     * Support and actively work to secure the success of the
United Nations World Conference on Women that will take place
in Beijing in September 1995.
     * Encourage, as appropriate, ratification and compliance
with the International Convention on the Elimination of all
Forms of Discrimination Against Women and the Inter-American
Convention on the Prevention, Punishment and Eradication of
Violence Against Women.
     * Further strengthen the Inter-American Commission on
Women.
     * Call upon regional and international financial and
technical organizations to intensify their programs in favor
of women.  Encourage the adoption of follow-up procedures on
the national and international measures included in this Plan
of Action.

19. Encourage Microenterprises and Small Businesses
     Microenterprises and small businesses account for a large
percentage of the employment of the poor, particularly women,
and contribute a considerable percentage of the gross domestic
product of our countries.  Strengthened support for
microenterprises and small businesses is a key component of
sustainable and equitable development.

Governments will:
     * Further pursue or initiate programs of deregulation and
administrative simplification.
     * Increase efforts to enable enterprises to obtain
information on appropriate technologies (especially those that
are environmentally sound), markets, processes, raw materials
and management systems that will permit them to be more
competitive in the global economy.
     * Develop programs of financial deregulation to reduce
costs in credit transactions and strengthen the institutional
capacity of the financial sector servicing microenterprises
and small businesses, and encourage the active participation
by multilateral and bilateral agencies, development banks,
commercial banks and other intermediary credit organizations,
consistent with strict performance standards.
     * Strengthen the institutions and programs that supply
services and facilitate access to training and technical
assistance to make possible this sector's participation in the
global economy through export of its products and services.
     * Encourage cooperation among businesses in this sector
to enable them to benefit from the advantages of economies of
scale without losing their distinctive characteristics.
     * Promote the strengthening of relations among the
public, private and mixed (public/private) institutions that
support the microenterprise and small business sector through
programs of information, training, technical assistance,
financing and association-building, enabling this sector to
thrive over the long term.
     * Recommend to the multilateral development
organizations, especially the World Bank and the IDB, the
establishment or fortification of funds and other mechanisms
to support microenterprises and small businesses.

20. White Helmets-Emergency and Development Corps
     The "White Helmets Initiative" is based on the conviction
that a concerted international effort of developing and
developed countries can facilitate the eradication of poverty
and strengthen the humanitarian rapid response capability of
the international community to emergency humanitarian, social
and developmental needs.
     The countries of the Americas could pioneer this
initiative through the creation of national corps of
volunteers that could respond to calls from other countries in
the region.  These national corps could eventually be put at
the disposal of the United Nations.

Governments will on a voluntary basis:
     * Establish, organize and finance a Corps of volunteers
to work at the national level and, at the same time, be at the
disposal of other countries of the Hemisphere and,
eventuality, the United Nations system, on a stand-by basis,
for prevention, relief, rehabilitation, technical, social and
development cooperation, with the aim to reduce the effects of
natural disasters, social and developmental needs and
emergencies.
     * Through the creation of a national corps of volunteers,
be responsible for the following:
     --Selection and training of its national volunteer corps;
     --Financing of its national corps of volunteers,
encouraging the involvement of the private sector;
     --Preparedness to send specialized volunteers, on short
notice and at the request of the United Nations, to cope with
situations generated by or to prevent the effects of natural
disasters and humanitarian emergencies.
     --Contribute to the formation of this corps and invite
private enterprises, foundations and regional financial
institutions to do so.
     --Contribute to the development of an international
roster of volunteers to be maintained in a master plan in the
United Nations to be drawn upon to complement the activities
of existing UN mechanisms.  The IDB, OAS, and PAHO should be
invited to participate and assist in developing this corps.


IV. GUARANTEE SUSTAINABLE DEVELOPMENT AND CONSERVE
OUR NATURAL ENVIRONMENT FOR FUTURE GENERATIONS

21. Partnership for Sustainable Energy Use*
     Consistent with Agenda 21 and the Framework Convention on
Climate Change, sustainable energy development and use promote
economic development and address environmental concerns.
Governments and the private sector should promote increased
access to reliable, clean, and least cost energy services
through activities and projects that meet economic, social,
and environmental requirements within the context of national
sustainable development goals and national legal frameworks.

Governments will:
     * Pursue, in accordance with national legislation, least
cost national energy strategies that consider all options,
including energy efficiency, non-conventional renewable energy
(i.e., solar, wind, geothermal, small hydro, and biomass), and
conventional energy resources.
     * Emphasize market-oriented pricing, which discourages
wasteful energy use.
     * Identify for priority financing and development at
least one economically viable project in each of the following
areas: non-conventional renewable energy, energy efficiency,
and clean conventional energy.
     * Promote, in cooperation with the private sector and
rural and isolated communities, rural electrification programs
which take into account where appropriate the utilization of
renewable energy sources, in accordance with the domestic
regulatory framework.
     * Seek to ratify and begin implementation of the
provisions of the Framework Convention on Climate Change which
entered into force on March 21, 1994.
     * Encourage the World Bank and IDB to increase promptly
and substantially, as a portion of energy lending, financing
of projects in energy efficiency and renewable energy and
financing to improve the environmental sustainability of
conventional energy sources, in accordance with economic
rationality.
     * Call on the multilateral financial institutions and
other public and private financial institutions to finance
regional and national programs in support of this action plan,
such as training and exchange programs as well as technology
cooperation, in accordance with the needs and conditions of
receiving countries.
     * Assist with coordination and technical cooperation
between countries, using existing regional organizations,
including project identification and implementation, training
programs, and personnel and information exchange to increase
capacity.
     * Promote the identification and implementation of
private sector projects that reduce greenhouse gas emissions.
     * Convene a Sustainable Energy Symposium in the first
half of 1995 to discuss follow-up activities relative to this
initiative.  In the spirit of cooperation countries will share
their experiences and discuss progress on implementing this
action plan.

     (Note: This initiative is integrally linked with the
Energy Cooperation item).

22. Partnership for Biodiversity
     Our Hemisphere contains over half the world's
biodiversity.  To sustain the Hemisphere's social and economic
development we must intensify efforts to understand, assess,
and sustainably use this living resource base.  We must act
now to increase the technical and management capacity and
public awareness of national and international efforts in this
area.  Agenda 21, the Convention on Biological Diversity, and
other related international instruments recognize these needs
and call for the conservation and sustainable use of
biodiversity resources.

Governments will:
     * Seek to ensure that strategies for the conservation and
sustainable use of biodiversity are integrated into relevant
economic development activities including forestry,
agriculture, and coastal zone management, taking into account
the social dimension and impact of these activities.
     * Develop and implement the policies, techniques, and
programs to assess, conserve, and sustainably use terrestrial,
marine, and coastal biodiversity resources.
     * Seek to ratify the Convention on Biological Diversity
and pursue opportunities for collaboration under it, and, as
appropriate, other international and regional environmental
instruments.
     * Support democratic governmental mechanisms to engage
public participation, particularly including members of
indigenous communities and other affected groups, in the
development of policy involving conservation and sustainable
use of natural environments.  The forms of this participation
should be defined by each individual country.
     * Develop national plans and programs to establish and
strengthen the management of parks and reserves, seeking links
to economic, social, and ecological benefits for local people.
     * Build capacity for the conservation and sustainable use
of biodiversity, through programs on management of parks and
protected areas, forests and wetlands management, the Small
Islands Developing States Action Plan, the Coral Reef
Initiative, CITES support projects, and the Caribbean Regional
Marine Pollution Action Plan, among others.
     * Launch a "Decade of Discovery" to promote hemispheric
technical and scientific cooperation and to facilitate the
exchange of information relevant to the conservation and
sustainable use of biological diversity.
     * Increase support of training and education initiatives
addressing sustainable use of biodiversity resources and
foster activities by universities, non-governmental actors and
organizations and the private sector to assist in the training
of managers and to empower local communities.
     * Call on multilateral financial institutions, including
the IDB and the Global Environment Facility, to support
eligible regional and national projects.
     * Discuss progress on implementation of national and
international activities described above at the 1996 Summit
Conference on Sustainable Development in Bolivia, and at
subsequent annual sustainable development ministerials.

23. Partnership for Pollution Prevention
     As recognized in Agenda 21, sound environmental
management is an essential element of sustainable development.
Cooperative efforts are needed to develop or improve, in
accordance with national legislation and relevant
international instruments: (1) frameworks for environment
protection; and (2) mechanisms for implementing and enforcing
environmental regulations.  To achieve this goal, a new
partnership will promote cooperative activities for developing
environmental policies, laws, and institutions; increasing
technical capacity; promoting public awareness and public
participation; continuing to pursue technological, financial
and other forms of cooperation; and facilitating information
exchange, including on environmentally sound technologies.
The activities of the partnership will build on and advance
the implementation of international agreements and principles
including those agreed to at the 1992 United Nations
Conference on Environment and Development and the 1994 Global
Conference on the Sustainable Development of Small Island
Developing States, in areas identified as priorities by
countries of the Hemisphere.

Governments will:
     * Strengthen and build technical and institutional
capacity to address environmental priorities such as
pesticides, lead contamination, pollution prevention, risk
reduction, waste and sanitation issues, improved water and air
quality, access to safe drinking water, urban environmental
problems, and to promote public participation and awareness.
     * Develop and implement national action plans to phase
out lead in gasoline.
     * Strengthen national environmental protection frameworks
and mechanisms for implementation and enforcement, and include
sustainability criteria and objectives in national and other
development strategies.
     * Undertake national consultations to identify priorities
for possible international collaboration.
     * Support democratic governmental mechanisms to engage
public participation, particularly from members of indigenous
and other affected communities, in the consideration of
policies regarding the environmental impact of development
projects and the design and enforcement of environmental laws.
     * Convene a meeting of technical experts, designated by
each interested country, to develop a framework for
cooperative partnership, building on existing institutions and
networks to identify priority projects.  These projects will
initially focus on (I) the health and environmental problems
associated with the misuse of pesticides, and (2) the impacts
of lead contamination from gasoline and other sources.
Subsequent activities could address waste, air, water quality,
marine pollution from ships and other sources, and problems
associated with urbanization.
     * Promote the participation of organizations, such as the
IDB, MIF, the World Bank, PAHO, the OAS, and non-governmental
actors and organizations, as appropriate, to finance, develop
and implement priority projects.
     * Develop environmental policies and laws with the goal
of ensuring that economic integration of the region occurs in
an environmentally sustainable manner.
     * Establish mechanisms for cooperation among government
agencies, including in the legal and enforcement areas, to
facilitate environmental information exchange, technology
cooperation and capacity-building.
     * Develop compatible environmental laws and regulations,
at high levels of environmental protection, and promote the
implementation of international environmental agreements.
     * Discuss progress on implementation of international and
national activities described above at the 1996 Summit
Conference on Sustainable Development in Bolivia and at
subsequent annual sustainable development ministerials.

Appendix
     The primary responsibility for implementing this Plan of
Action falls to governments, individually and collectively,
with participation of all elements of our civil societies.
     Existing organizations or institutions are called upon to
implement the package of initiatives that has emerged from
this Summit of the Americas.  In many instances we have
proposed that specific issues be examined by meetings of
ministers, senior officials or experts.  We are also proposing
that some of these initiatives be carried out in partnerships
between the public and private sector.  Wanting to benefit
from existing hemispheric mechanisms, and considering the
various proposals included in this Plan of Action, we offer
the following recommendations, which shall not impede any
government from approaching other institutions not cited
herein, as appropriate.

     I. Principal Initiatives in Which International
Organizations and Institutions Will Be Involved

     A) The OAS will have a paramount role in following up on
the various decisions of this Summit meeting.  Regarding the
Plan of Action, the OAS has a particularly important
supporting role in connection with the following:
     * Strengthening Democracy
     * Promoting and Protecting Human Rights
     * Combating Corruption
     * Eliminating the Threat of National and International
       Terrorism
     * Building Mutual Confidence
     * Free Trade in the Americas
     * Telecommunications and Information Infrastructure

     The Action Plan also envisages roles for the OAS in the
following areas:
     * Promoting Cultural Values
     * Combating the Problem of Illegal Drugs
       and Related Crimes
     * Cooperation in Science and Technology
     * Strengthening the Role of Women in Society
     * Partnership for Pollution Prevention

     B) We call on the Inter-American Development Bank to
support the activities specified in this Plan of Action.  The
policies agreed in the recently completed augmentation of its
capital and replenishment of the Fund for Special Operations
already move in the directions identified and should receive
special emphasis.  The IDB has a particularly important role
in connection with the following:
     * Universal Access to Education
     * Equitable Access to Basic Health Services
     * Encouraging Microenterprises and Small Businesses
     * Partnership for Sustainable Energy Use
     * Partnership for Biodiversity
     * Partnership for Pollution Prevention

     In addition, the Action Plan envisages roles for the IDB
and its affiliates in the following areas:
     * Promoting and Protecting Human Rights
     * Invigorating Society/Community Participation
     * Promoting Cultural Values
     * Combating Corruption
     * Combating the Problem of Illegal Drugs
       and Related Crimes
     * Free Trade in the Americas
     * Capital Markets Development and Liberalization
     * Hemispheric Infrastructure
     * Cooperation in Science and Technology
     * White Helmets'Emergency and Development Corps

     C) Other international organizations, notably ECLAC and
PAHO in the Hemisphere, as well as the World Bank and all
agencies of the UN system active in the Hemisphere, are called
upon to assist in the implementation of the action items where
appropriate.

II. High-Level Meetings

     The following high level meetings and conferences are
called for to carry out the mandates emanating from the
Summit:

     * Summit Conference on Sustainable Development (Bolivia,
       1996) with follow-on Annual Ministerials
     * Ministerial Conferences on Combating Money Laundering
       (preceded by working level meeting)
     * Conference of Donors for Alternative Development
       Programs to Curb Narcotics Trafficking
     * Global Counter-Narcotics Conference
     * Special OAS Conference on Combating Terrorism
     * Regional Conference on Confidence-Building Measures
       (Chile, 1995)
     * Meetings of Ministers Responsible for Trade (June 1995,
       March 1996)
     * Meeting of Committee on Hemispheric Financial Issues
     * Hemispheric Meeting on Development of Energy Industries
       (first semester 1995)
     * Meeting of Ministers Responsible for Science and
       Technology (1995)
     * Meeting Between Governments and Donors/Technical
       Agencies to Establish Health Reform Mechanisms
     * Sustainable Energy Symposium (first half of 1995)

III. Initiatives in Which Public and Private Sector
     Partnerships Play an Important Role:

     * Strengthening Democracy
     * Promoting and Protecting Human Rights
     * Invigorating Society/Community Participation
     * Promoting Cultural Values
     * Combating Corruption
     * Hemispheric Infrastructure
     * Cooperation in Science and Technology
     * Universal Access to Education
     * Equitable access to Basic Health Services
     * Encouraging Microenterprises and Small Businesses
     * White Helmets -- Emergency and Development Corps
     * Partnership for Sustainable Energy Use
     * Partnership for Biodiversity
     * Partnership for Pollution Prevention