Organization of American States builds links in Western Hemisphere: Canada plays a lead role in the world's oldest regional organization, but using that for effective change in trade practices remains a challenge.

Some critics consider it to be a shadow of its former self, an organization whose influence has run its course--and yet the Organization of American States (OAS), a stronghold of democratic principles for almost 120 years, continues to engage in practices designed to safeguard lives and spearhead the development of hemisphere-spanning free trade. For Canada, OAS membership has ensured our country an opportunity to get to know other nations of the Western Hemisphere and participate in a variety of endeavours, from trade and economic initiatives to human rights, health and safety projects.

The world's oldest regional organization, the OAS got its start in 1890 in Washington, D.C., during the First International Conference of American States. Eighteen countries became members (the organization currently has 35); initially called the Union of American Republics and later the Pan American Union, its focus--to promote economic unity among Western nations, ensure peace, and find solutions to political or judicial problems--evolved over time to include, after World War II, a pledge to fight communism.

That position was decided upon in 1948 at a conference in Bogota, where the current name was also adopted. A young insurgent, then-21 year old Fidel Castro, protested at the organization's anti-communist stance, more than a decade before his 1959 rise to power in Cuba. Castro's protest would echo later when Cuba's membership in the OAS was suspended in 1962--a suspension that still stands.

A key trade forum?

Despite such political challenges, the OAS has a strong track record for promoting openness and transparency in promoting democracy. In the past 40 years, the organization has created and sent dozens of observation teams to oversee free elections in its member states. It has supported the peace process through the delivery of special OAS missions in Nicaragua, Haiti and Guatemala and has been actively involved in the removal of land mines in the Andes and in Central America, an activity in which Canada played a major role.

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All of which makes for an interesting worldview for Canada, which this year celebrated its 16th anniversary of OAS membership. It became a full member after spending 18 years as a Permanent Observer. According to the federal government's Department of Foreign Affairs and International Trade, Canada views the OAS as the key hemispheric forum to promote Canadian interests in the Americas (including democratic development, human rights, good governance, regional and human security, public safety, economic equity and sustainable development) and address challenges of democratic governance.

Professor Michael Hart, of the Norman Paterson School of International Affairs at Carleton University, says that when Canada first joined the OAS, "we were welcomed with open arms. It allowed (then Prime Minister) Joe Clark to deal with the democracy movement in Central America. Canada was also able to look at trade issues and was instrumental in doing work for the Free Trade Area of the Americas (FTAA) agreement."

The FTAA, designed to be an extension of the North American Free Trade Agreement, resulted from a goal established at a 1994 OAS meeting and followed up by a treaty to establish the Western Hemisphere as a free trade zone by 2005. But that landmark year came and went, and FTAA talks continue; the process is a difficult and circuitous one as member nations try to ensure that their concerns are addressed. The concerns expressed include intellectual copyright issues and expanded trade in services for developed nations, while developing nations seek freer trade in agricultural goods and an end to agricultural subsidies.

Members continue to discuss the FTAA, although opponents like left-leaning Venezuelan President Hugo Chavez call it a dead issue and U.S. President George Bush felt it took a back seat to the current round of WTO trade talks.

A challenge, too, lies in emerging regional trading blocs that may make the FTAA redundant: for example Mercosur, created in 1991, which includes Brazil, Uruguay, Paraguay, Argentina and Venezuela, and the Andean Community of Nations, created in 1969 and comprised of Venezuela, Columbia, Ecuador, Peru and Bolivia. Last year the Andean Community's GDP totalled $745.3 billion; Mercosur's GDP came in at just over $1 trillion; in 2004 the two organizations, along with Chile, signed a declaration of intent to create a South American Community of Nations, which would rival the FTAA.

The importance of membership

As the second largest contributor to the OAS, Canada provided an annual assessed contribution representing 12.36% of the OAS regular budget in 2004-2005 (USD $9.2 million). Canada also provides an annual voluntary contribution of CDN $9 million and contributes to projects that include electoral observation missions, action on landmines, counter-drug activities, mutual legal assistance, and consultations with civil society.

Paul Durand, Canada's Ambassador to the OAS, says Canada plays an essential role. "We're the number two country in terms of economic weight and contribution [after the U.S.], but I would say we're the most active country, especially in funding to promote democracy, which is one of the most successful features of the OAS."

Durand, who formerly served Canada in ambassador roles in Chile and Costa Rica, as well as director-general responsibilities for Latin America and the Caribbean with the Department of Foreign Affairs and International Trade, adds that the changing face of the OAS--newer members include most of the Caribbean islands--means that its members have to be responsive to shifting priorities.

"In the past, decades ago, it (OAS) was really a creature of U.S. foreign policy," says Durand. That has changed, and the vestiges of hardcore anti-communism are beginning to fade as member countries begin tackling significant issues of trade, human rights, security and the environment, although democracy as an ideal remains a key component.

At the OAS General Assembly last June, Foreign Affairs Minister Peter MacKay lauded the new economic opportunities that OAS is ensuring through its commitment to "sustainability and economic growth. This is an important part of creating new economic opportunities to raise the standard of living and should continue to be a top priority. We believe that economic freedom is the incentive that keeps people motivated in the economy. There are positive and encouraging signs that our region, overall, is making headway in this direction."

Bernie Wolf, professor of economics and international business at York University's Schulich School of Business, says Canada's membership in OAS is more important than ever. "Latin America is important and I think it has been given short shrift by Canada. My view is that Canada has not spent enough energy on developing relations with Latin America. Canada needs to direct more of its energies there and one way is through the OAS as well as bilaterally."

A polarized society

But according to Hart, the OAS has "reached as far as it can and is limited in what it can do."

One of the challenges is in influencing Latin America's direction, both politically and trade-wise, says Hart. "We continue to be actively engaged in OAS's activities but with the FTAA not going anywhere the prospects are limited. Like many international organizations, things are done quietly in the background and (while) the potential was there for a while, Latin America will decide what it wants to do [on its own]. Latin America continues to be a much more polarized place than other parts of the world--there is a strong, powerful wealthy class and a lot of poor people and not a strong middle class to overcome that divide. Until you have that strong middle class there will continue to be problems."

Yet despite issues around social and political instability in countries like Haiti, Colombia, Ecuador and Bolivia, the OAS still has great potential, says Durand.

"We have a very broad agenda, working on agreements on indigenous issues, corruption, narco-trafficking, and knitting together a network of conventions that define a hemispheric undertaking," he says. While there are other pan-continental institutions like the African Union (59 members) or La Francophonie (49 members), no group is as focused or effective in meeting its members' needs as the OAS. "It has been a good mechanism for protecting Canada's interests in this hemisphere."

John Cooper is a Whitby, Ont.-based freelance writer.