To achieve higher growth, there must be reforms that unleash the wealth-producing capabilities of our people. Clearly, we cannot, of course, relax sound budget and monetary policies. Rather, we must use this foundation of solid macro-economic policies as a springboard for deeper structural reforms. We are ready for a second-generation reform targeted on privatization, deregulation and competition that can stimulate productivity and raise the potential growth rates of our economies. Fifth, this is a moment of unique opportunity because we are entering the crucial phase of negotiations on the Free Trade Agreement for the Americas.
Free trade is a powerful tool for stimulating growth and reducing poverty.
The experience of Chile is one of the best examples. Chile's free trading policies have made it the fastest growing country in Latin America and one of the fastest growing countries in the world. And at the same time Chile has cut its poverty rate in half during the last decade. In many countries, trade policies do not fully support growth. Average tariffs in Latin America are on the order of 15 percent.