National Security Strategy 2006

 

B. Current Context: Successes and Challenges
The global economy is more open and free, and many people around the world have seen their lives improve as prosperity and economic integration have increased. The Administration has accomplished much of the economic freedom agenda it set out in 2002:
Seizing the global initiative. We have worked to open markets and integrate the global economy through launching the Doha Development Agenda negotiations of the World Trade Organization (WTO). The United States put forward bold and historic proposals to reform global agricultural trade, to eliminate farm export subsidies and reduce tradedistorting support programs, to eliminate all tariffs on consumer and industrial goods, and to open global services markets. When negotiations stalled in 2003, the United States took the initiative to put Doha back on track, culminating in a successful framework agreement reached in Geneva in 2004. As talks proceed, the United States continues to lead the world in advancing bold proposals for economic freedom through open markets. We also have led the way in helping the accessions of new WTO members such as Armenia, Cambodia, Macedonia, and Saudi Arabia.
Pressing regional and bilateral trade initiatives. We have used FTAs to open markets, support economic reform and the rule of law, and create new opportunities for American farmers and workers. Since 2001, we have:
• Implemented or completed negotiations for FTAs with 14 countries on 5 continents, and are negotiating agreements with 11 additional countries;
• Partnered with Congress to pass the Central America Free Trade Agreement – Dominican Republic (CAFTA-DR), long sought by the leaders of El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Dominican Republic;
• Called in 2003 for the creation of a Middle East Free Trade Area (MEFTA) by 2013 to bring the Middle East into an expanding circle of opportunity;
• Negotiated FTAs with Bahrain, Jordan, Morocco, and Oman to provide a foundation for the MEFTA initiative;
• Launched in 2002 the Enterprise for ASEAN Initiative, which led to the completion of a free trade agreement with Singapore, and the launch of negotiations with Thailand and Malaysia;
• Concluded an FTA with Australia, one of America’s strongest allies in the Asia- Pacific region and a major trading partner of the United States; and
• Continued to promote the opportunities of increased trade to sub-Saharan Africa through the African Growth and Opportunity Act (AGOA), and extended opportunity to many other developing countries through the Generalized System of Preferences.
Pressing for open markets, financial stability, and deeper integration of the world economy. We have partnered with Europe, Japan, and other major economies to promote structural reforms that encourage growth, stability, and opportunity across the globe. The United States has:
• Gained agreement in the G-7 on the Agenda for Growth, which commits member states to take concrete steps to reform domestic economic systems;
• Worked with other nations that serve as regional and global engines of growth – such as India, China, the ROK, Brazil, and Russia – on reforms to open markets and ensure financial stability;
• Urged China to move to a market-based, flexible exchange rate regime – a step that would help both China and the global economy; and
• Pressed for reform of the International Financial Institutions to focus on results, fostering good governance and sound policies, and freeing poor countries from unpayable debts.

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