The leading candidates for the headquarters of the Free Trade Area of the Americas (FTAA)—Atlanta, Miami, Panama City and Port-of-Spain—are fighting to outdo each other to offer the best economic perks and incentives. But hemispheric politics, regional loyalties and rivalries could play large roles in deciding who wins the headquarters, worth millions as the seat of the world’s-largest trade bloc.

Here’s the scenario: Trinidad and Tobago has the support of 15 of the FTAA’s 34 nations, all of them English-speaking Caribbean countries. Miami has public backing only from Uruguay and Nicaragua. So far, no nations support Atlanta. And only the Dominican Republic has publicly endorsed Panama, which claims to have the private support of several Latin American nations.

Trinidad and Panama hope to build their backing by tapping into sentiment among some FTAA delegates that the U.S. should not get the headquarters because it is the hemisphere’s dominant power. “Small countries already fear economic integration. If the U.S. hosts the FTAA, it’s another signal that the biggest partner is taking more and more,” says former Panama ambassador to the U.S. Eduardo Vallarino, now a Panama City developer.

Trinidad officials agree. “Philosophically and practically, it’s better not to concentrate all the power of the FTAA in the most powerful member,” says Trinidad and Tobago Miami Consul Harold Robertson. Panama and Trinidad representatives seek to position their countries as compromises for a selection process that promises to be divided. But even if Panama or Trinidad don’t get the headquarters, the FTAA should not choose the United States, say delegates from both nations. “The U.S. is not a neutral site. It’s critical to have the most neutral venue because this is a trade agreement, not a political agreement,” says Rossana Castrellon, Panama’s foreign relations vice minister.

Ten cities vie for the prize, including Chicago, Houston and Galveston in Texas, Colorado Springs, Colorado, and Puebla and Cancun in Mexico. The FTAA’s self-imposed deadline for reaching a final agreement on the deal is Jan. 1, 2005. The FTAA expects to choose a headquarters site, however, in the next few months.

Competing cities are doling out huge economic freebies to the FTAA. Miami, for example, promises to pay at least half of the estimated $12 million to $16 million in construction costs for a headquarters building that will house 200 employees.

Miami’s business community would finance the other half, along with funds from the state of Florida and U.S. federal government. Miami would pay the building’s operating expenses and cover any shortfalls. Florida FTAA, the organization heading the lobbying effort, is considering offering discounts on private-school tuition for children of secretariat staff, diplomatic exemption from property taxes and accelerated immigration, visa and customs procedures.

Visa issues are crucial because, since Sept. 11, several consuls and ministers have complained to Miami International Airport about longer entry procedures and unnecessary body searches, as well as rudeness by security staff. Florida FTAA officials have tried to smooth things over. “I spoke with representatives of every FTAA country. For some it’s an issue. Others say it’s a necessary inconvenience to feel safe,” says Florida FTAA Chairman Chuck Cobb, a Miami businessman.

Betting big. Trinidad, which already is clearing land to be used for the headquarters, plans to offer incentives similar to Miami’s. “Our government has agreed to commit all funding needed to get the secretariat. Whatever it takes,” says Anthony Hosang, president of the Trinidad and Tobago Manufacturers Association.

Atlanta officials, meanwhile, are challenging Miami’s longtime reputation as the U.S. center of Latin American trade. “Atlanta has the resources to serve as the leading commercial center in the Southeast (and) function as the business and trade capital of the hemisphere,” boasts Mayor Shirley Franklin.

Florida FTAA leaders scoff. “There’s one gateway to Latin America and that’s Miami,” says Florida FTAA Executive Director Jorge Arrizurieta.

Bring it on, says John Bekkers, CEO of chicken processor Gold Kist in Atlanta. “‘Gateway to the Americas’ is just a catchy slogan,” he says. “The question is where will the FTAA be best served, and that’s Atlanta.”