Following U.S. Congressional passage of the Trade Act of 2002 in late July, U.S. trading partners around the world praised the long-anticipated authorization of "fast track," or trade promotion authority. While the legislation certainly will have significant global implications, benefits for the Western Hemisphere are particularly critical; coming at a time when much of the region is experiencing economic hardship and political uncertainty.

By opening regional borders to more-free trade, the U.S. is helping its own economy as well as those of its closest neighbors to enjoy a much-needed stimulus.

The newly granted TPA for President Bush is expected to have at least three immediate implications on U.S. trade relations with Latin America. It will allow the U.S. to complete ongoing free trade agreement talks with Chile; it will assist in launching FTA negotiations with Central America; and it will help implement the hemisphere-wide Free Trade Area of the Americas by 2005.

As a result of another provision in the trade bill, businessmen and women in Bolivia, Colombia, Peru and Ecuador are breathing a huge sigh of relief while gearing up new business plans to take advantage of the renewal and expansion of the Andean Trade Preference Act. The ATPA, which provides beneficiary countries with preferential trade benefits in the U.S. market, was established in 1991 to help stabilize the region. However, the program expired last December, significantly raising costs to Andean exporters.

The overall benefits that will accrue to Andean countries and the region as a result of the ATPA program could be monumental. Andean countries need to create jobs to spur their faltering economies, stabilize governments, raise standards of living, and deter illicit activities associated with coca production.

Thanks to the leadership of President Bush, renewed investor confidence in the region will help develop and diversify the economies of the Andean countries creating more than 150,000 new jobs. In addition, the expanded benefits under the ATPA undoubtedly will help level the playing field for Andean exporters and will provide a sourcing base close to home for U.S. companies. Prior to enactment of the Trade Act, many of these U.S. companies began shifting purchases from South America to Asia.

By giving his signature on August 6, President Bush enacted a trade-liberalizing initiative that serves only as a mere steppingstone toward what is expected to become a significant era of market opening successes.

While TPA will provide the tools needed to launch trade agreements in Latin America and elsewhere, ATPA enhancement will create immediate tangible benefits for some of the poorest countries in the region.

By allowing these countries to fully realize their economic potential, the U.S. has more importantly sent a positive and necessary signal to the rest of the world that it is a leader in helping all countries prosper from free trade.