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OAS TO EXECUTE $7 MILLION IN TRADE AND SUSTAINABLE
DEVELOPMENT PROJECTS IN CENTRAL AMERICA

The Organization of American States (OAS) announced today that during 2003 it will carry out projects totaling an estimated US$7 million in non-refundable cooperation in Central America to support trade-related capacity building and sustainable development.

Secretary General Cesar Gaviria said “the objective of the initiative is to enhance trade and improve the long-term economic well-being and development of the region as the countries embark upon the negotiation of the US-Central American Free Trade Agreement (CAFTA).”

The OAS is working closely with a committee of donor institutions -headed by the Inter American Development Bank (IDB)- to help the Central American countries prepare for the CAFTA negotiations, fulfill their obligations and reap the benefits of the agreement. Already in this context, the OAS has assisted the government of El Salvador in producing its National Action Plan for Trade Capacity Building (TCB). Each country has formulated similar plans as the basis for attracting financial and technical assistance.

Jose Manuel Salazar, Director of the OAS Trade Unit, noted that “the National Action Plans will promote greater coherence among institutions and emphasize efficiencies among donors in the delivery of technical assistance. It will also ensure that the donor programs are demand-driven and responsive to the needs and interests of recipients.”

The OAS is channeling its assistance through its Trade Unit and the Inter-American Agency for Cooperation and Development (IACD), among other subsidiary bodies, as well as through specialized organizations such as the Inter-American Institute for Cooperation on Agriculture (IICA), the Inter-American Commission of Women, and the Pan-American Development Foundation.

Through the IACD, the OAS offers non-refundable technical cooperation to member states to finance projects and activities within eight priority areas of hemispheric development: economic diversification and integration, trade liberalization and market access; education; sustainable development; social development and creation of productive employment; democracy; scientific development, and exchange and transfer of technology; sustainable development of tourism; and culture.



Economic Diversification and Integration, Trade Liberalization and Market Access

The OAS IACD has approved US$1.3 million in non-refundable cooperation in Central America in 2003 for activities ranging from strengthening the agro-industrial clusters of countries, to enhancing the trade-related capacities of the negotiating teams and the productivity and competitiveness of the micro- and small enterprises, to improving port security.

Upon request, the Trade Unit offers training in the following areas: services, investment, intellectual property rights, dispute settlement, competition policy, standards, subsidies, anti-dumping and countervailing duties.

Sustainable Development

Through the Unit for Sustainable Development, the OAS will carry out projects for US$5.3 million in Central America over the next three years, which include integrated management of water resources, conducting national environmental impact assessments of trade liberalization, transportation sector environmental vulnerability reduction, and renewable energy.

Reference: E-008/03