The importance of successfully concluding the Doha Round negotiations was highlighted.
The U.S. economy will continue to grow "at a good pace" despite the mortgage crisis experienced by this country, said U.S. Commerce Secretary Carlos Gutierrez today at a meeting with Uruguayan business leaders.
On his second and final day of his visit to Uruguay, Gutiérrez gave a lecture to business leaders and members of the Uruguay-United States Joint Chamber of Commerce, in which he emphasized the opportunities for trade between the two countries given the positive outlook for both economies.
Furthermore, he stressed the importance of successfully concluding the Doha Round trade negotiations and wanted to speak out in favor of the American economy, whose health has been called into question in recent months due to the mortgage crisis in the United States.
In response to one of the attendees' questions, Gutiérrez referred to that crisis, which has shaken financial markets around the world, and insisted that, despite the problems that have arisen in the real estate sector, the diversification of the US economy will allow it to overcome this and other current problems.
"Two years ago, people were talking about the problem of hurricanes, about Katrina, which was a huge blow, and before that, there was talk about the blow to the economy from September 11 (referring to the attacks carried out in the US on that date in 2001)" which affected tourism, transportation, and services, he explained.
"In 2000 we had a very sharp market downturn. We also had examples of corporate scandals that eroded market confidence. But on each occasion we have seen that while one (economic) segment of the population declines, another rises," he added.
He acknowledged that the credit, mortgage, and housing market is currently going through a difficult time, but noted that in the second quarter of this year, the US economy grew by 3,8 percent despite this problem, "because exports and the commercial building construction sector grew."
The American economy, he continued, "has developed in such a way that there are sectors so large and so strong that when one falls, another rises" and "through that combination we have been able to grow and will continue to grow."
According to Gutiérrez, the consumer, "who represents 70 percent of the US economy," will see that there has been an improvement in the third quarter compared to the second quarter of the year.
"And we continue to see an economy that will continue to grow at very healthy levels. Growth over the last five years has been 2,8 to 2,9 percent, which for an economy like the U.S. is quite strong," he added.
Regarding the conclusion of the Doha Round on trade, Gutiérrez asked for a little patience and recalled that the Uruguay Round took eight years to resolve, compared to the six years that these World Trade Organization talks have been going on.
"Today we are at a decisive moment in the development of Doha," he said.
The Doha Round was launched in 2001 to increase the liberalization of international trade, in order to streamline exchange between countries and benefit the least developed.
Gutiérrez noted that the European Union should respond positively to the US decision to lower certain subsidies and highlighted the "decisive role" that some developing countries, such as India and Brazil, can play in advancing the negotiation process.
"The decision, the commitment, the dedication, a slightly more committed participation from Brazil and India, I think these are the challenges of today," for progress in Doha, he said.
He asserted that "a successful agreement, a strong Doha agreement, can lift approximately 500 million people out of poverty."
There is talk of giving donations, he said, but "there is no better way to help a developing country, countries in Latin America, in Africa, in Asia, than to give them free trade," hence, he added, the "strategic nature of the Doha Round."
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