GREETING & Optional Gracious Throwaway Line

Presentation by: Jorge L. Arrizurieta, Executitive Director, Florida FTAA,Inc

OPENING You may have seen the story in Sunday’s paper about how one of the proposed hemispheric trade agreements could jeopardize the future of our citrus industry and the economy of rural Florida. 2

The article reported that Governor Bush was speaking before a group of summer interns at a law firm on local efforts to land the permanent headquarters for a free trade area in the Americas to Miami. He acknowledged that there will be temporary winners and losers with the proposed changes to the current tariffs on goods and services.

But the Governor was bullish on the future outcome for these negotiations. He stated, “In the long run we all benefit.”

What we’re going to be talking about briefly today … is the meaning of some of those acronyms you’ve been hearing about. …What is the FTAA? What’s the Ministerial and what is the ABF happening before it? And the real question that all of us care about…what can these international trade meetings mean to our businesses and the South Florida economy.

I’ll also update you on what’s happening here in November when the trade ministers of the 34 nations in our Hemisphere convene in Miami, and the opportunities that are open to you to participate 3 in the America’s Business Forum and the Ministerial meeting. You’ll also see why this important showcase of our community is so critical in our efforts to win the coveted prize of the Permanent Secretariat. This permanent headquarters will govern the Free Trade Area which will span from Tierra del Fuego on the Southern tip of South America to the North Pole.

Let’s begin with what I am going to call FTAA 101.

The proposed Free Trade Area of the Americas – known as the FTAA – is an international effort to tear down trade barriers between the 34 democracies of our hemisphere.

The goal is to create one vast economic playing field which supports the free trade of goods, services and investments.

Based on what we have seen in the European Union model, we fully expect that the strengthening of economic ties in the Americas 4 will spur development and progress throughout the region.

Everything in the Free Trade agreement is up for negotiation … steel, furniture, textiles telecommunications equipment, oranges and intellectual property. Even the selection of where the Permanent Secretariat, the governing headquarters for the trade agreement is being negotiated, no differently than all of the other issues. The only difference is that the presidents have agreed – and ratified twice – that the site selection will be decided some time before the trade agreement is finalized in January 2005.

Governor Bush set up the Florida Free Trade Area of the Americas, Inc., as a public-private partnership to spearhead our state’s commitment to attract the permanent seat for the governing body that will oversee this new trade zone by January 2005.

The Governor has made this free trade initiative his top economic development priority. Who’s 5 on board with us so far? Across the state, we are seeing the Committee of 100 in Tampa and the Orlando Regional Chamber of Commerce – where I am going this afternoon to rally the troops – They have taken the lead to set up specific committees to support Miami’s campaign.

Locally, your leadership team here at the Chamber has been at the table since Day 1. Right now we’re actively engaged in taking the entire effort to the next level. And next week, for example, we’ll be in Chile together in a joint Chamber of Commerce and Florida FTAA Task Force Trip. We just returned from Costa Rica with Frank Nero and the Beacon Council.

We will join CAMACOL – our friends at the Latin Chamber of Commerce – in Nicaragua where will meet with President Bolanos, his trade minister and the country’s business leadership.

Our goal for all of these trips is to reach out to the business and political leaders in the 6

Hemisphere who will be included in the Free Trade Area.

If you joined us on one of these trips, you’d find yourself sitting down with the president and key government officials. We’re there to state the case of why Miami is the natural and ideal location for the headquarters for the Free Trade Area. We are there to respectfully request that the ties that unite us – whether business, educational, cultural or personal – be reaffirmed by honoring us with this prize.

The Regional Economy that will be created by this Free Trade agreement will include 800 MILLION consumers… with a collective gross national product of more than $14 Trillion dollars. To put this in perspective, this new economy will be twice as large as the European Union… and the largest free trade agreement in the history of the world.

Part of why we’re enjoying great success so far is because we’re so fortunate to have the 7 leadership and active involvement of Ambassadors Cobb and Lauredo. Ambassador Cobb is serving as chairman of both the Florida FTAA and the upcoming Ministerial Meeting. Ambassador Lauredo is my counterpart at the Ministerial and the Americas Business Forum, where he serves as Executive Director.

Also on board with us are Ambassadors Rocha, Ferro, Cejas and Moss, who have joined forces with our many business and civic leaders to help us advance our efforts in the region.

You may have heard that there are folks who don’t want a Free Trade Area of the Americas. They opposed the North American Free Trade Agreement – NAFTA and they will oppose all Free trade agreements anywhere. We are fortunate in our country to have a democratic platform where people can express their point of view.

Some are concerned about the impact of the trade negotiations on the workforce both in our country and in the region. 8

What is unfortunately not covered sufficiently in the media is the reality that all of these agreements have a grace period that allow all nations – including ours – to retool and reinvent those industries that may be adversely impacted by the changes the agreements will bring about.

The Free Trade Agreement is about stopping to think about what makes business sense for an industry… for a nation to do. Why continue planting a crop or manufacturing a product when the profit is not sustainable? This Free Trade Agreement is about planning for the future, for your children and their children. As President Bush and Governor Bush have said, time and time again, this effort is not just about trade, it’s about Opportunity, Growth, and Development. I Take the question of oranges that I mentioned earlier. About 30 % of Florida orange groves are owned by Brazilians. And conversely, Florida business interests own a similar amount 9 of citrus producing land in Brazil. The point is that it seems to me that given this example of cross-ownership, it is apparent that business leaders in Florida and in the region are preparing for the future. Whether the governments agree or not today, free trade is already being practiced.

This Free Trade process is a very complex agreement. We’ll have good press days and bad ones…I am convinced that as long as we keep our eye on the ball, however, the future is ours!

To switch gears now, I invite you to think about the following for a second or two…

Atlanta, Georgia…Gateway to the Americas. That’s what this ad said in a recent edition of Latin Trade.

Don’t know about you, but that sounds kind of odd to me. Of course, anybody can call themselves anything they want. It’s a free 10 country. And we’re talking about free trade, after all.

Let me point out that Miami has been the recognized gateway to the Americas for the past 50 years. Based on total US trade, nearly one third goes through Miami’s customs district. In contrast, less than 2 per cent goes through the Savannah district which covers all of Georgia. And we’re all familiar with the many other reasons why we’re the superior choice – from our multilingual professional workforce to our transportation infrastructure to our cultural sensitivities. Additionally, we are second only to New York as the US center for international banking, and we host the second largest concentration of consulates from around the world, and the highest from Latin America.

Competing with Miami for the permanent Secretariat are Panama City, Panama, Port of Spain, Trinidad and Tobago, Puebla, Mexico and Atlanta, Georgia.

Why do we want this Permanent Secretariat? 11

According to a study led by our own Dr. Tony Villamil of the Washington Economics Group and vice chair of Florida FTAA and Dr. Sena Black of Enterprise Florida, when the Free Trade agreement is completed, the Secretariat will produce directly and indirectly about 90,000 jobs. The impact on the State Economy would be over $13 Billion dollars.

So what are all these meetings in November and why are these trade meetings so important to us?

Miami is hosting the America’s Business Forum and the Free Trade Area of the Americas Ministerial Meetings, back-to-back. These events will take place the week of November 17-21, and they are extremely important to us, the entire State of Florida and the nation because the whole world will be watching us…

The America’s Business Forum will meet November 17-19 at the Hyatt Regency 12 downtown. It will bring together business, political and community leaders to formulate recommendations, proposals and positions that will be presented to the trade ministers. You can register on line and find information by going to our website which is www.ftaa2003.org.

Some of you might recall 9 years ago when we hosted the historic Summit of the Americas here in Miami. This summit gave birth to the awesome undertaking that we’ve been talking about today. The heads of state agreed then to complete the process of creating a free trade zone within 10 years.

The Ministerial Meeting, scheduled for November 19- 21, at the Intercontinental downtown Miami, is where all 34 trade ministers will convene. This will mark the second to last meeting of the Ministers – and the last in the United States -- before the Free Trade agreement is finalized. 13

Three weeks ago at the Vice Ministers Meeting in San Salvador, for the first time in this eight year old process, the question of criteria for the Permanent Secretariat was formally discussed.

The intention is to have the criteria for selection of the site to be determined by the time the Ministers leave the Meeting in Miami in November. It’s fair to say that by the late fall of 2004 it’s likely that a site will be chosen.

I believe we can feel heartened at this point in the process because the United States Trade Representative Office (USTR) and its leader, Ambassador Bob Zoelick, has continued to recognize Miami’s importance by choosing Miami to be the site of the Ministerial Meeting in November and most recently, by selecting us to be site for the historical signing of the US/Chile Free Trade Agreement.

Summary 14

To recap, as Governor Bush has said, in the long run, we will all benefit from the Free Trade Area of the Americas.

It is unquestionably a complex and challenging political process we have undertaken as a community. We’re closer than we’ve ever been to reaching the vision that was born at the Summit of the Americas 9 years ago.

Miami is uniquely positioned at the front of the race and we seem to have friends in high places.

But to win, we will need to work overtime to make sure that the meetings this fall are picture perfect.

We are working hard to make sure it all comes together seamlessly and safely. The arrivals and departures, the transportation, the hotels. That the coffee is good, and the security component is handled precisely. We want a logistical dream come true, with the same 15 success that the Summit of the Americas enjoyed in 1994.

According to Michael Lewis, publisher of Miami Today, with the Secretariat, we have a perpetual SuperBowl in sight…We can’t afford to kick it away.

To win the game, we need you to consider financially supporting our Ministerial Meeting and joining our efforts to lobby and market Miami before the 33 nations of the Hemisphere.

And just as important, help us spread the word throughout our business community that we are sitting where New York did over 50 years ago when they planned and organized themselves to land the United Nations headquarters.

We have the same chance to capture what is perhaps the most coveted prize in the international arena today. With your help we’ll not only continue to be the official gateway to 16 the Americas but we will also become the new economic powerhouse of the region.

Thank you.