The performance of Latin American economies improved significantly in 2004, but the region must maintain the "disciplined" macroeconomic policies and advance the legal, regulatory and institutional reforms to increase long-term economic growth, according to US Treasury Under Secretary John Taylor.
Recent economic data indicate that the economic recovery in the region is getting stronger thanks to better economic policies and other factors after the difficulties in 2002, Taylor said in remarks to a business group in Florida on August 23.
Taylor cited Brazil as a country where the impact of sound economic management on economic growth is most evident.
However, he said, much remains to be done in the region to improve the climate for investment and entrepreneurial activity.
Although the economic expansion has been partially boosted by high commodity prices, it also may derive from enduring structural changes, which are pushing the region's economies toward export-driven growth, Taylor said.
"This makes further progress on regional trade liberalization... all the more important to the region's future prospects," he said.
Taylor expressed hope that the recent success in advancing World Trade Organization talks will carry over to the Free Trade Area of the Americas (FTAA) negotiations.
"Failure to resume negotiations toward a high standard FTAA would be a great loss for the entire region," he said.
The agreement the 34 nations reached in Miami in November 2003 calls on all FTAA participants to negotiate minimum levels of commitments in each of nine negotiating areas, while allowing countries that want to seek stronger ties to pursue their goals along separate tracks.
Taylor also highlighted Bush administration efforts to support economic growth in the region, increase international trade and promote policies that strengthen small business and encourage investment. He cited as examples the US role in financial crisis prevention and containment, the US-Brazil Group for Growth and the US-Mexico Partnership for Prosperity.
(Following is an edited version of the text of Taylor's remarks as prepared for delivery:
The Department of the Treasury
Under Secretary Taylor's remarks on Latin American expansion
The Latin American expansion -- Benefits for the United States
John B. Taylor Under Secretary of Treasury for International Affairs meeting with leaders of the South Florida Business Community
Organized by Florida FTAA, Inc. Biltmore Hotel Coral Gables, Florida.)
Stronger economies in Latin America benefit not only the people of the region, but also the people of Florida and all citizens of the United States. Growing economies in our Hemisphere create jobs in the United States by increasing demand for US exports. Last year, exports to Latin America represented about one-seventh of total US exports and nearly one-half of Florida's exports. More vibrant economies and rising living standards in Latin America also reduce the incentives for illegal migration, strengthen democracy, and reinforce popular support for market-oriented policies that create opportunity and enhance economic freedom. In addition to reflecting American values, stronger democracies in Latin America are better allies in the war on terror, the fight against international narcotics trafficking, and initiatives to combat money laundering and terrorist financing. The cooperation of America's closest neighbors is essential to our success in these efforts.
Today I would like to take the opportunity to highlight (some of) the steps that the Bush Administration has taken and continues to pursue to support economic growth in the region, open up further opportunities for international trade, and work with the governments in the hemisphere to put in place sound economic policies that promote entrepreneurialism and investment. I am pleased to say that we are already beginning to see the beneficial effects of those policies in the form of stronger econo
