Embassy of the United States

Ambassador

Ambassador Gutierrez's Speeches

THE UNITED STATES AND ARGENTINA IN 2005
Ambassador Lino Gutierrez’ Remarks at the Club del Progeso
April 20, 2005

Introduction:

Dr. Carlos Regúnaga, thank you for your kind introduction.  I would also like to thank the President of this honorable institution, Dr. Bartolomé Tiscornia, the other members of the Board of Directors, and all those present, including my colleague, the Ambassador of Peru, Martín Belaúnde Moreyra. 

The Summit of the Americas is about half a year away.  Argentina, of course, will host it; and both Argentina and the U.S. will be key players at the meeting.  I believe that the objectives our two countries have in common, and the democratic values we share, will help this Summit be one that leaves a lasting impression.

The Presidents of our two countries have said as much.  In their phone conversation a few weeks ago, Presidents Bush and Kirchner agreed that November’s summit marks a chance for the Hemisphere's democratic leaders to reaffirm their commitment to strengthen our democracies  and create more prosperous market-based economies.

President Bush’s interest in Latin America is not new.  It dates from he earliest days of his administration.  The same can be said of his interest in your country.  The support we have shown for Argentina in the IMF negotiations was one significant indication of that interest; that was a personal decision made by President Bush.  Since the beginning of President Kirchner’s administration, there have been repeated contacts, beginning with a phone call to incoming President Kirchner the morning of his inauguration and, a few weeks later, a visit of then Secretary of State Colin Powell.

The recent phone conversation between the two Presidents, Foreign Minister Bielsa’s meeting with Secretary of State Rice, and Secretary of Defense Rumsfeld’s visit in March show that our interest in close ties with Argentina will continue.  And those links are not only government-to-government.  As I have noted before, U.S. business, academic, scientific, travel, and other activities have long been present in this country, and the focus by those and other U.S. sectors on your country has only strengthened.

In my position, I’ve been most directly concerned with increasing cooperation between our two governments.  I have been most gratified by the extensive teamwork between our two nations.  We hope that this partnership will be strengthened in 2005 and last well beyond this November’s Summit.

U.S. Policy Aims:
Let me zero in a bit more directly on the state of relations between our two nations.

The United States and the Bush Administration feel that the most important U.S. goals in this hemisphere are to promote democracy and good governance, stimulate economic development, invest in people, and strengthen regional security.  In all four areas, we try to blend our desire to promote peace and democracy with concrete issues such as education and trade agreements. In the case of Argentina, our policy is aimed at supporting and helping the country while it takes the necessary steps to make its incredible potential a reality.

Democratic Progress:

Promoting and protecting democracy is of fundamental importance to the U.S.  Democratic nations share common values and work constructively together.  Even in the worst days of the economic crisis of 2001-2002, the Argentine people have demonstrated an unflagging commitment to "their" democracy.  The success of Argentina democracy is very much in the U.S. national interest.  The U.S. is convinced that a strong, vibrant, prosperous and engaged Argentina will be of great benefit to our hemisphere.  In fact, Argentina is playing a leadership in many areas and are  working together in in  Haiti, and trying to help assure the survival of a democratic system in Venezuela and Bolivia.

Here in this country, to reinforce the democratic values so important to Argentines, we have been providing Argentine NGOs with information and seminars on such topics as democracy and justice reform.  We have been helping government institutions also, such as the Anti-Corruption Office.

Newly appointed Secretary of State Condoleezza Rice asserts, “In much of Latin America, we face the twin challenges of helping to bolster democratic ideals and institutions, and alleviating poverty. We will work with reformers in those regions who are committed to increasing opportunity for their peoples.” To this end, Argentina and the U.S. have worked tirelessly to assure that no country in Latin America is failing to provide its citizens with honest and free elections and leaders who genuinely believe in the power of democracy and freedom.

Economic Progress:

In the economic arena, the U.S. and Argentina work together fairly closely, always on the lookout to encourage trade and investment. The U.S. was happy to support Argentina in its most recent dealings with the IMF.  We saw it as in nobody’s interest to have an economically paralyzed Argentina.  The recent growth and recovery of this country’s economy is good news for everyone.

That growth can be further increased through making Argentina even friendlier to investors.  Already there are about 100 U.S. companies in Argentina.

There could be many more.  Decision-makers in every country should never forget one of Colin Powell’s favorite expressions:  “Capital is a coward.”  Potential Investors need to believe that they will receive a reasonable return on their investment under rules that do not change midway through the game.

Growth can also be increased by wise choices in setting up free trade regimes.   Trade is of vital – and growing – importance to this hemisphere.  Last year alone the U.S. purchased $217 billion in products from Latin America, not to mention our direct investment in the region totaling $304 billion.  Trade between the U.S. and Latin America is becoming more important. In fact, it is estimated that trade between the U.S. and Latin America will soon overtake the amount of trade between the U.S. and Europe.

Currently, roughly half of Latin America lives in poverty, a poverty that must be alleviated – and hopefully, eradicated -- through sustained economic growth. The Free Trade Area of the Americas will be key to achieving this growth.

Implementation of FTAA will bring increased growth from trade, new jobs that will help close the income gap, greater economic stability to help head off financial crises, and increased government revenue to be used to improve basic education and health services. We only need to look as far as Mexico to see the positive implications of free trade.   After NAFTA went into effect, Mexico went from being ranked 36th in exports to 8th and gained over 3.5 million trade related jobs in less than 10 years. In fact, today Mexico has a larger economy than Brazil.

Your neighbor Chile is another excellent example of the benefits of free trade agreements.  Chilean exports to the U.S. rose by 31% in the year since our bilateral free trade agreement with that country went into effect.

Foreign Minister Bielsa has said that his government wants FTAA, but only an FTAA that meets Argentina’s needs.  I hope it will come as no surprise to you to discover that that is what my government wants, too.  Any region-wide trade agreement ought to deal fairly and thoroughly with the concerns of all those who will take part; any trade agreement that does not do so is doomed to die a quick death, since no one will want to participate.

Working closely with the Argentine government, we hope both sides will be able to reap the benefits of a far-reaching and mutually beneficial trade agreement by the end of this year.

Investing in people:
Achieving freedom and opportunity for all also requires that countries to invest in people —education, health care, and other basic social services — to empower citizens to claim their fair share of economic opportunity, improve their lives, and build better futures for their children.
This is a crucial component of President Bush’s Millennium Challenge Account, his historic new assistance program that rewards countries making the tough decisions to help themselves.
To be eligible for MCA funds — amounting to $2.5 billion for fiscal years 2004 and 2005 — nations must govern justly, uphold the rule of law, fight corruption, open their markets, remove barriers to entrepreneurship, and invest in their people.
The MCA is aimed at countries poorer than Argentina.  While Argentina would not be able to benefit from that initiative at this time, there are things the U.S. is doing to help Argentina capitalize on its elevated levels of education and initiative by providing training and expertise where it’s needed.
One example is the Fulbright program for master’s degree study in the U.S., one of the hemisphere’s largest.  The Argentine Fulbright program is one of the hemisphere’s largest, and one of the most successful.  The knowledge acquired is put to use immediately by Argentine students returning to their jobs in the nation’s scientific and professional communities.
Another way my embassy has helped Argentina continue to move forward is by bringing in U.S. experts in such areas as education, indigenous rights, corporate social responsibility, and administration of successful NGOs to provide the know-how requested by local organizations as they develop their own programs.  Most of these speakers work with groups in the provinces as well as here in the capital; all have been successful.

Security:
 
Our two nations’ remarkable relationship permits us to cooperatively address a broad range of security issues. The most important security issue for both Argentina and the U.S. is counter-terrorism.  Argentina is the only Western Hemisphere country outside of the U.S. to have suffered devastating attacks launched by international terrorist groups.

One means of addressing these attacks is by through the 3 + 1 regional cooperation mechanism to fight terrorism, money laundering, and drug and arms trafficking in the Tri-Border area of Brazil, Paraguay, and Argentina.  The cooperation we have received from Argentine authorities in this area could not be better, and is very deeply appreciated by my government.

It is our goal to work with willing, capable and serious partners, and if necessary, to provide the material assistance needed to improve their counter-terrorism capabilities.  Because if there is one lesson we learned from 9/11, the Israeli Embassy and the AMIA attacks is that no country is immune to being designated a target by international terrorism.

I also want to highlight Argentina's important role in another area.  Argentina has peacekeeping forces serving in five UN Missions around the world, including Haiti.  But what makes Argentina’s participation unique is that you have done all of this despite incredible economic and financial constraints.  This is a true sign of Argentina’s seriousness about its role in maintaining world peace – a sign that I can assure you is highly valued in Washington.

Summit of the Americas:

The Summit of the Americas in Argentina this coming November will be an excellent opportunity for our two countries to share our strong belief in the free market system as a vehicle to providing jobs and improving living conditions in America.  This year’s summit theme, “Creating Jobs to Fight Poverty and Strengthen Democratic Governance,” comes at an ideal time, since economic growth in Latin America in 2004 was the highest in 25 years. There is no better time than now to take the necessary measures to achieve faster growth, more jobs (particularly in the private sector), and higher wages.

Certainly, we understand that creating jobs is not always an easy and simple process, and at present about 40 percent of the Argentine population is under the poverty line, compared to only 22% 10 years ago. But this summit will allow us an opportunity to discuss how we, as a region, can work together to achieve rapid development and find solutions to overcome obstacles on the path to prosperity.

If all the nations of this region can work together as effectively as our two nations have in so many areas, I am confident that we can meet this challenge and make the Summit a success for Argentina and the Americas.

Conclusion:

This will be a busy year for our two nations. Some view changing circumstances as problems; others view them as opportunities.  Let’s take the optimistic view, and focus on the diverse bilateral policy menu as a plethora of excellent opportunities to make our joint goals a reality.

No doubt we will have disagreements on the road to getting things done.  But if friends agree on a goal, they can find a way to overcome differences in how to reach that objective. I believe that our countries’ shared fundamental desire to improve democracy and human well-being will prevail.  The Summit of the Americas that Argentina is hosting will be key in making that happen.

Between now and the Summit I’m sure we’ll have plenty of other opportunities to work productively together.  The topics I’ve mentioned --combating terrorism, reducing trade barriers, and protecting democracy in the hemisphere and abroad -- are only some of the most pressing issues before us.  Working together, I’m sure we can find solutions amenable to both our countries.  For my part, I have no doubts that, thanks to that strong and positive relationship, 2005 will be another great year for U.S./Argentine relations.