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Associated Press | Nov. 18, 2003

MIAMI (AP) -- Early conflicts among negotiators trying to turn the Americas into the world's largest free trade zone have focused on the scope of the proposed agreement.

A stumbling block emerged Monday over a Brazilian and U.S. proposal that would create a base of common rules for the Free Trade Area of the Americas, but allow each of the 34 countries to pick which of the more controversial clauses they wish to follow, according to a draft copy of the document.

Agricultural subsidies and tariffs, as well as rules on investment and intellectual property, have been major sticking points in the negotiations.

But Canada and Chile said all the participating countries should follow every clause, according to an official with the Brazilian delegation, who spoke on condition of anonymity.

The negotiators were to return to the bargaining tables Tuesday as trade ministers and officials from every country in the Western Hemisphere except Cuba negotiate the free trade area. Thousands of anti-globalization protesters also were expected.

The deal between the United States and Brazil would apparently scale back the free trade region, which was conceived as an agreement that would reduce or eliminate all trade barriers among the member nations to boost regional growth and pull people out of poverty.

The compromise came after Brazil and the United States had been arguing fiercely about the scope of the agreement. Brazil wants the United States to reduce or eliminate subsidies, quotas, tariffs and other barriers that protect American farmers. The United States says agricultural issues should be decided by the 146-member World Trade Organization.

U.S. lead negotiator Ross Wilson insisted Monday that the 34 nations remained committed to creating a comprehensive free trade area by January 2005.

The FTAA proposal also is drawing criticism from anti-globalization activists, a mix of environmentalists and union activists. An estimated 20,000 or more protesters are expected to turn up for a march Thursday.

About a dozen protesters stripped to their underwear outside a Gap clothing store Monday to protest the chain's policies, while others unsuccessfully demanded a meeting with Mayor Manny Diaz to complain about police surveillance.

Police reported three arrests Monday related to protests: one on a felony charge of battery against a police officer and two misdemeanor charges of disorderly conduct.

On Monday, business leaders also kicked off three days of meetings aimed at bringing their recommendations to trade ministers.Associated Press: