I for more information on the 34 countries of the Free Trade Area of the Americas.) The final negotiation period will be chaired jointly by the United States and Brazil. Summoning Political Will to Conclude an FTAA

A number of participants told us that the FTAA could be successfully concluded if the key Western Hemisphere leaders demonstrate that they have the political will to conclude the agreement. These decisions will set the pace, goals, and structure for the next phase of negotiations, since the ministers typically set out the agenda for the next phase of the process at the ministerial meeting. Scope and Methodology

To meet our objectives of (1) discussing what progress has been made in the free trade negotiations to date, (2) identifying the challenges that must be overcome to complete a free trade agreement, and (3) discussing the importance of the April meetings of trade ministers and national leaders of the participating countries, we reviewed FTAA and executive branch documents and related literature and economic literature, and held discussions with lead U.S. government negotiators for each of the FTAA negotiating groups.
Why GAO Did This Study

The negotiations to establish a Free Trade Area of the Americas (FTAA), which would eliminate tariffs and create common trade and investment rules within the 34 democratic nations of the Western Hemisphere, are among the most significant ongoing multilateral trade negotiations for the United States. Two meetings held in April 2001 offer opportunities to inject momentum and set an ambitious pace for the next, more difficult phase of the negotiations. Because of the significance of the FTAA initiative, this report (1) discusses the progress that has been made in the free trade negotiations so far, (2) identifies the challenges that must be overcome to complete a free trade agreement, and (3) discusses the importance of the April meetings of trade ministers and national leaders of participating countries.

What GAO Found

GAO found that the FTAA negotiations have met the goals and deadlines set by trade ministers. Significant challenges remain, including market access concessions and doubts that key Western Hemisphere leaders will have the political will to embrace the agreement. The April meetings of trade ministers will serve as a transition from the initial proposal phase to the substantive negotiations phase.