Remarks by John Negroponte at the 37th Annual Washington Conference on the Americas

Thank you for your kind introduction, Mr. [Javier] Trevino.

Ladies and gentlemen: It's an honor to join you for the 37th Annual Washington Conference on the Americas. I have many long-time (that's a polite way of not saying "old") friends here today. Needless to say, it's good to see you all. Secretary Rice sends each of you her best wishes and appreciation for everything the Council of the Americas does to promote dialogue and cooperation in the Hemisphere that we call "home."

Many of you have heard that we are characterizing 2007 as a "year of engagement" in the Hemisphere. That's not to suggest that U.S. Hemispheric engagement is in any way new--not for you in the private sector, not for us in government--but to indicate that we think 2007 is extremely important. 2007 is a year for helping our partners meet urgent needs by ensuring that democracy and democratic governments deliver the security, services, and opportunities the people of the Hemisphere rightly expect. We've come too far in recent decades to let the progress we've made lose momentum. This is a year for pushing ahead, not being driven off course, or conceding that some parts of the Hemisphere are too hard to help.

2007, for instance, should be a year when we and our partners begin the long process of restoring a free Cuba to its place in the inter-American system. After all the free, competitive elections we saw in the Hemisphere last year, why shouldn't Cubans have the opportunity to follow suit?

President Bush inaugurated this year of engagement with a very productive visit to Brazil, Uruguay, Colombia, Guatemala, and Mexico in March. He underscored our commitment to the region.

First, he made clear that we are ready and willing to engage any democratic government, regardless of where it falls on the political spectrum, in real partnership.

Second, he emphasized that we want to strengthen our relationships in the Hemisphere not just at a government-to-government level, but also at a people-to-people level.

This is a region that has taken great strides toward freedom. On balance, we can take satisfaction from that fact, but only on balance. I say that because we see mixed results in the political sphere that must give us pause. Questionable decision-making in some capitals threatens to spread poverty and inequality rather than reduce poverty and inequality. This could discredit the democratic process we all have worked so hard to advance and should give us all great motivation to deepen our Hemispheric engagement.

It's crucial that the Hemisphere's democracies be able to translate substantial gains in freedom and democracy into tangible, meaningful improvements in the daily lives of their people. Workers throughout the region want to know that economic growth in open markets will lead to good jobs and higher standards of living. Parents across the hemisphere are concerned about the prevalence of narcotics, about the effects of drug-trafficking on our children, and about the malignant corruption drug-trafficking can produce within the institutions of governance.

The Administration therefore is committed to helping our neighbors meet basic needs like education, healthcare, and housing, and maintain economies that make it possible for workers to provide for their families. These were central themes in the President's trip, and they were well-received. The overwhelming majority of countries in our hemisphere want a good relationship with the United States. In fact, most already have a good relationship with the United States. Now by strengthening those relationships, we can use challenges to democracy as catalysts for political, social, and economic development.

One of the key elements of our engagement in the region is helping our neighbors build growing economies that are open to the world--economies that will provide greater opportunities for their people. This, of course, is central to the mission of the Council of the Americas and underscores the importance of your business and investment decisions.

Already we are seeing the tangible benefits of free trade through the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

CAFTA-DR means a lot more than just lower tariffs for Central America and the Dominican Republic. CAFTA-DR is helping our partners

• Build their capacity to export;
• Expand and improve their business operations;
• Attract significant new investment;
• Create new jobs and business opportunities;
• Raise their labor and environmental protection standards as a way of protecting their labor forces and natural resources; and
• Last but not least, CAFTA-DR is improving the region's global competitiveness.

We're extending our positive agenda to help our neighbors build better, more productive lives elsewhere in the Hemisphere as well. The pending FTAs with Colombia, Panama, and Peru are key to our goal of promoting economic stability and growth while encouraging private sector expansion in a way that alleviates poverty.

Colombia, Panama, andPeru are excellent candidates for FTAs with us. These three countries embrace democratic governance and open markets as the way to create economic opportunity and freedom for their people; they share our belief that these free trade agreements will contribute to development and growth, and they share our commitment to ensure that the benefits of these agreements reach all sectors of society.

U.S. trade with Colombia, Panama, and Peru has nearly doubled over the past 4 years, reaching $27.9 billion last year. That's more than our total trade with all our Middle Eastern and North African FTA partners combined. If those countries won overwhelming bipartisan support in Congress, why shouldn't Colombia, Panama, and Peru-proven economic partners so much closer to home with such enormous upside potential?

The Millennium Challenge Account (MCA) is another vital form of U.S. engagement in the Hemisphere. In many ways, MCA programs are the perfect complement to our FTAs. After all, duty free access to U.S. markets is only an asset if producers in our FTA partner countries are able to physically get their goods to the market. MCA programs are building that needed infrastructure.

Finally, let me offer a few words about a topic of great concern everywhere in the region: energy security. High energy costs are a great burden on developing economies, so we are committed to helping our neighbors secure energy supplies at the best prices possible. To do this we're engaging with producers, consumers, and NGOs, bilaterally and multilaterally. Our approach is multifaceted. It includes:

• Diversifying suppliers and expanding production through free, competitive and open markets;
• Diversifying energy types by promoting alternative fuels (including biofuels) and new technologies within the region;
• Promoting energy efficiency and conservation through technology, international partnerships, and market pricing; and
• Expanding the international use of strategic oil stocks.

My interest in this region goes back many years, so I am delighted that next week I will be visiting Peru, Ecuador, Colombia and Panama. That will be my first visit south of the border as Deputy Secretary of State. I promise it won't be the last.

In addition, I'm pleased to note that in response to a call made by President Bush at the Fourth Summit of the Americas, Commerce Secretary Carlos Gutierrez will convene the "Americas Competitiveness Forum" in Atlanta June 11-13. Then, from June 19-21, Secretary Rice will host her counterparts from the Caribbean Community (CARICOM) at a special Conference on the Caribbean. And later this summer, the White House will convene a Conference on the Western Hemisphere that will bring together representatives from the private sector, non-governmental organizations, faith-based groups, and volunteer associations.

If this sounds like a commitment to really deliver on the "year of engagement," I'm glad, because that is the message I want to convey. This Administration understands that the democratization of our hemisphere is a precious opportunity. It's broad, now it must be deep. It's almost full--minus Cuba--now it must be fair. Democracy is for everyone, but to realize its immense potential, everyone, especially the United States and you, the job-creating, wealth-producing private sector, has to be completely engaged.