Americas summit discusses poverty amidst violence

Nov 5, 2005, 15:48 GMT

Mar del Plata - After a day of destructive, violent street protests against U.S. President George W. Bush, leaders from the Western Hemisphere who are bitterly divided over trade issues planned to continue talks on Saturday at this seaside resort.

The second and last day of the Summit of the Americas will focus on how Latin America's 200 million poor can benefit from the region's economic upswing. The 34 leaders are officially discussing the theme of fighting poverty and strengthening democracy by creating jobs.

The leaders met Friday under strict security while demonstrators in Mar Del Plata and the Argentine capital Buenos Aires targetted foreign banks - French, Spanish and the Boston bank - and American fast food restaurants like McDonalds and Burger King. The protesters damaged windows and set fire to other stores with foreign names, such as a bakery called 'Edelweiss'.

Police detained 87 people, and fired tear gas and rubber bullets before breaking up the protest. Public employees went on strike around the country against Washington's longstanding push for a Free Trade Area of the Americas (FTAA).

The violence erupted after a peaceful rally at a stadium in this seaside resort, where Venezuelan President Hugo Chavez - Bush's nemesis in Latin America and a summit participant - said U.S.-backed plans for a vast regional free trade area were dead.

Miguel Insulza, secretary-general of the Organisation of American States, emphasized the preconditions for an effective fight against poverty - economic growth, disciplined budgets and free market economies.

But the leaders differ over how to get there. Washington and Mexico are pushing for a free-trade zone from Canada to the tip of Argentina. The United States has started to build the zone piecemeal through regional trade agreements with Central America and other countries.

But heavyweights Brazil, Argentina and Venezuela oppose the FTAA.

Mexico's President Vicente Fox suggested that a beginning could be made by building a free trade area only with the countries which agree.

'There are almost 30 countries which agree (Mexico included) in this direction, and three or four countries which don't agree,' Fox said, referring to the Mercosur countries - Argentina, Brazil, Paraguay and Uruguay - which along with Venezuela oppose the FTAA.

'The one who feels that it benefits him, should join, and who doesn't, no', he said on Friday.

A key obstacle for the Americas plan is a deadlock at world trade talks over farm subsidies, which Latin American countries are pressing the U.S. to cut because they undercut markets for their own agricultural products.

U.S. officials are looking to breaking the impasse on agriculture at a World Trade Organization meeting in Hong Kong next month as a way of unlocking the FTAA dispute.

While the United States has indicated readiness to concede on the subsidies front, the European Union is still wrestling with the issue.