MEDIA REACTION: WESTERN HEMISPHERE: FREE TRADE AGREEMENTS,

UNCLAS SAO PAULO 000666 SIPDIS SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP ETRD BR SUBJECT: MEDIA REACTION: WESTERN HEMISPHERE: FREE TRADE AGREEMENTS, FTAA, BRAZIL; SAO PAULO "The American Alternative" An editorial in center-right O Estado de S. Paulo commented (6/13): "Hemispheric trade integration may advance even without the FTAA, but Brazil risks losing this opportunity as well. The U.S. may launch a new strategy, according to governmental sources O Estado heard in both the U.S. and Mexico.... The solution is to create links between the several bilateral and regional trade agreements concluded by American nations so as to form a net to integrate separate trade agreements. The U.S. has already signed trade agreements with different hemispheric partners. NAFTA is the most consolidated regional integration experience in the hemisphere.... The FTAA project is stuck and currently there is little hope of resuming its negotiations. Pursuing agreements with hemispheric nations has been a way to overcome obstacles.... The GOB helped to facilitate Venezuela's entry in Mercosul, thereby giving to Hugo Chavez the power to formally veto the resumption of the FTAA talks, or even the beginning of trade conversations with the U.S..... Uruguay and Paraguay will probably abandon Mercosul if they have a chance to negotiate a trade agreement with the U.S. In this case, Brazil and Argentina will be tied to the bloc under Venezuela's leadership." McMullen