This piece includes briefings
on the recently initiated CAFTA negotiations, country-specific updates,
and political updates from the United States.
What is CAFTA?
The Central America Free Trade
Agreement is a proposed trade and investment agreement between the United
States and five Central American countries:
Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The first
round of negotiations began in Costa Rica on January 27th, the second
round is taking place February 24th-28th in Cincinnati, Ohio, and
subsequent
rounds will take place monthly. Officials hope to have the agreement
completed in December 2003 and implemented in 2004.
What is the CAFTA Coalition?
The CAFTA Coalition is made
up of civil society organizations in the United States working
to promote human rights
and democracy in Central
America.
The Coalition supports fair trade and sustainable development,
including, but not limited to, transparency in trade negotiations,
parity of
enforcement for labor and environmental provisions, and
the protection of basic
public services such as social security and access to
water. It therefore rejects
any trade agreement that follows the NAFTA model, which
has caused a “race
to the bottom” in labor and environmental standards,
attacked institutions of democratic governance and national
sovereignty,
and has compromised
food security in all three countries. This model should
not be extended to Central America.
To learn more about the CAFTA Coalition or any of the briefings,
please contact: Tom Ricker/Quest for Peace: 301-699-0042 or Cherrene
Horazuk/The
Committee in Solidarity with the People of El Salvador: 212-465-8115.
CAFTA is NAFTA Descendant
The proposed CAFTA would be a descendant
of the North America Free Trade Agreement (NAFTA) between the United States,
Canada,
and
Mexico. The U.S.
hopes it could also be a stepping-stone to a 34-nation Western
Hemisphere free trade zone by 2003, an idea pushed by President
Bush since taking
office. The talks come on the heels of a U.S. free trade
agreement with Chile and another pact with Singapore that the administration
hopes to
finalize this month. U.S. business groups welcomed the initiative,
which they said would eliminate the advantage Canadian and
Mexican companies
have in the region because of existing trade agreements.
In
addition to eliminating tariffs faced by U.S. farm goods and other
products,
the agreement
is expected to lead to more services trade with the five
countries and stronger protections against the illegal piracy of
U.S.
movies, music and
books.
However, some U.S. industries are wary
of an agreement because of the increased
competition they could face.
The American
Sugar Alliance,
which represents
sugar cane and beet producers, has warned
it would oppose an accord unless sugar
is excluded. The American Textile
Manufacturers
Institute
also
wants tough “rules of origin” and
other provisions to limit any potential
U.S. job losses.
Reuters—January 8, 2002
Protests in El Salvador Force Change in Venue for Second
Round of Negotiations
Protesters took
to the streets on January 9 to demand "true negotiations" in
the plans for privatizing the country’s
social services and a probable free
trade agreement with the United States.
The protestors seized control
of the capital’s cathedral,
as the demonstrations continued into
the night. In addition to the protests
in San Salvador, tens of thousands
more blockaded highways and bridges
at nine points across the country.
Ninety workers at the New Tex maquila,
or garment sweatshop, occupied their
factory in protest against union-busting
and illegal firings: according to
one New Tex employee, "on the
first day of CAFTA negotiations,
we wanted to send a message that
the garment
industry violates workers'
rights."
Doctors, nurses and workers of
the Salvadoran Health Care System
(ISSS) have been on strike since
October,
protesting
the government’s
attempts to privatize the health system. Their strike
has increasingly included
opposition to CAFTA as a key issue. Hundreds of thousands
of people have mobilized numerous times in support
of the strike, and in opposition
to free trade. On February 6, nearly 100,000 people
marched in San Salvador against free trade and privatization
of
health care. At the closing rally,
many of the speakers emphasized the need to oppose
CAFTA.
CISPES Press Releases—January 9 and February
7, 2003
CAFTA Negotiations Begin in
Costa Rica, Amidst Protests
On
January 27th trade ministers from Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua
and the U.S.
met in Costa
Rica to begin the
first of nine rounds of negotiations
for a Central America Free
Trade Agreement
(CAFTA). CAFTA would essentially
eliminate tariffs on goods,
agriculture, services and
investments among
the
negotiating
countries. Civil
society representatives were
visibly absent among the
more than 200
delegates
participating
in the meetings.
Human, labor, and environmental
rights activists gathered
outside the meetings to
ensure that
their voices were
heard, protesting
that CAFTA
would launch
a new conquest of their
people. They argued that transnational
corporations were the only
sector allowed to participate
in the negotiations and
would thereby be more likely
to benefit from any agreement.
U.S. and Central American Nations Launch Free Trade Negotiations;
USTR Press Release. January 8, 2003
ACAN-EFE “Organizaciones Sociales Costarricenses Protestan Contra
TLC”. January 27,
2003
Two U.S. Citizens Begin
7-Day Vigil in El Salvador
On
February 22nd, 2003 two U.S. citizens began
a 7-day
water-only
fast and vigil in
front of the U.S. Embassy
in El Salvador
to protest the
second round of CAFTA
negotiations, which
will be held in their
hometown. Matthew
Eisen and Thomas
Meyer are catholic missionaries
from
Cincinnati,
Ohio who hope to
draw attention to what
they call the “economic war against
the poor” that
is taking place in
Central America.
“
CAFTA is being run through on a fast track, denying participation of the
Central American labor, human rights, and environmental movements. For
this reason, we oppose CAFTA and ask the U.S. Trade Representative to stop
negotiations as they are currently modeled”,
stated Eisen. Throughout
the week, the fasters
and their supporters
will hold daily press
conferences
with Salvadorn civil
society leaders.
Intercommunity
Justice and Peace
Center
Press Release—February
22, 2003
U.S. Decertifies
Guatemala, Could
Hinder Trade
Talks
In mid-January the U.S. government
chose
to “decertify” Guatemala
because of its
inability and
apparent unwillingness
to solve the
country’s
drug problems.
While some believe
that decertification
is nothing more
than a public
embarrassment,
it could mean
a drastic or
total reduction
in aid to the
country. Despite
the fact that
drug-trafficking
and drug-related
violence is on
the increase
in their country,
the Guatemalan
government defends
their efforts
and believes
the decertification
will only make
the
situation worse.
Officials publicly
stated that the
decertification
may also “hinder
free-trade talks
with the United
States and deter
investment”.
“ Guatemala
President Reportedly
Offers to Let
U.S. Take Over
Security at
Guatemala Ports”
Associated Press—February
10, 2003
Group Calls for Workers
Rights Assessment
Before CAFTA,
Especially Concerned
with Guatemala, Costa
Rica
The Lawyers Committee
for Human Rights
(LCHR) urged
U.S. officials
to provide
for basic workers
rights protections
in upcoming
CAFTA negotiations.
The committee pointed
out there is ample
evidence of labor
rights abuses throughout
Central America
and urged the United
States Trade Representative
(USTR)
to consider
how CAFTA might
encourage this
pattern
of abuse. Maddi
Azpiroz, from LCHR,
warned “if
in drafting the agreement
labor rights are
shunted off into
a side agreement-or
forgotten entirely-CAFTA
will almost
certainly
worsen what is already
a desperate situation
for many”.
LCHR asked
that
the USTR conduct
a country
by
country
assessment of
labor rights
to be
included in the
agreement,
including
freedom
of association,
child
labor, unpaid
and
excessive
overtime work,
minimum
wage, and safety
standards.
The
group
was particularly
concerned
about the situation
in Guatemala,
where
workers
have been repeatedly
attacked,
and
in Costa
Rica where
there
is a persistent
problem
with child
labor
on banana
plantations.
LCHR
Press
Release—November
19, 2002
Nicaragua:
Coalition
of Environmental
and Union
Groups
Challenges
CAFTA
“ Environmental/Union Coalition Challenges
CAFTA”
Paul Baker, Nicaragua News Service (Nicaragua Network). January 12,
2003
Brazil Concerned About CAFTA Negotiations
Although
Brazil is not one of the negotiating countries in the proposed CAFTA,
it recently has raised its own concerns about the agreement. Brazil,
along with
other critics
of the plan,
argue that this
is simply
another attempt
by the U.S. government to essentially “divide and conquer” the
Americas.
Mario Mugnaini, from the Federation of Industries in Sao Paulo said that
the U.S. is using tactics to try and force the larger nations,
like
Brazil, to accept future negotiations. He added, “if there are
too
many bilateral accords made around the region, then Brazil would ultimately
favor
closing the (Free Trade Area of the Americas) negotiations, but I don’t
think that’s what the United States wants”.
Brazil
is
the
largest
economy
in
both
Central
and
South
America
and
is
currently
the
least
secure
negotiating
country
for
an
encompassing
free
trade
agreement.
“ U.S. Begins Talks for Free Trade
Pact with Central Americans”
Elizabeth Becker, New York Times. January 9, 2003
Activists Seek Court Order to Require USTR to Assign
Environmentalist to
Trade Panel
On December
19th, a
coalition of
activists announced
that they
would seek
a court order
to require
the U.S. Trade
Representative to
appoint an environmental
representative to
a key policy
advisory committee
that deals
with chemical
trade issues.
Patti Goldman,
who works
with Earthjustice,
said that
the USTR had recently
appointed a
representative that
does not
satisfy the terms
of a March
2001 settlement.
Golman argued
that the
nomination Brian
F. Mannix
is a “slap in the face to the environmental community from
the Bush administration…International
commercial agreements
like the
North American
Free Trade
Agreement and
the World
Trade Organizations
have significant
impacts on
public health
and the
environment. When
U.S. trade
policy is
dictated by
an advisory
board dominated
by industry,
those issues
get short
shrift.”
The
March settlement
was a
result of
complaints from
the coalition
that every
member of
the advisory
committee was
either an
executive of
a chemical
or allied
products company
or a
representative of
an industry
trade association.
The group,
which is
led by
Earthjustice, argued
the Mannix’s
background in
government regulatory
capacity and
with an
academic think
tank does
not provide
him the
experience to
represent the
public health
and environmental
perspective on
chemical trade
issues.
“ Activists Will Seek Court Order Requiring
USTR to Put Environmentalist
on Trade Panel”
Bureau of National
Affairs. December 20, 2002
White House
Rewards Financial
Backers with
Key Advisory
Committee Positions
The
White House
and USTR
have come
under fire
due to
recent appointments
to the
Advisory Committee
for Trade
Policy and
Negotiations (ACTPN),
a trade advisory
committee that
meets regularly
with the
U.S. Trade
Representative and
provides input
to the
president on
trade agreements.
On
December 9th,
President Bush
announced 32
ACTPM appointments,
which included
major Republican
donors, free-trade
theologians, and
several individuals
with close
ties to
USTR Robert
Zoellick. Missing
from the
list were
labor, environmental,
and agricultural
representatives. Even
organizations that
had been “mainstays” on
the committee
were not
included, such
as the
AFL-CIO.
Many
civil society
organizations and
trade observers
have denounced
the appointments.
A staffer
of a
former ACTPN
member said “There’s
been no effort to try to provide a diversity of opinion…It
really takes
away any
credibility from
the process”
The
White House
can appoint
up to
45 members.
If the
administration chooses
to appoint
labor and
environmental representatives,
it
may not
do so
in time
to include
their views
in the
upcoming ACTPN
reports on
the Chile
and Singapore
agreements, which
are due
out in
early 2003.
“
White House Rewards Donors with Slots on Key Advisory Committee”--Inside
US Trade. December 13, 2002
Carnegie Endowment Argues
CAFTA will Wipe Out Labor Rights
A recent report by
the Carnegie Endowment for
International Peace
argues that CAFTA could essentially
wipe out the already minimal
labor rights in Central
America, which had been
protected under
the existing unilateral
deals. According to
the report, the Generalized System of Preferences
(GSP), the Caribbean Basin Economic
Recovery Act (CBERVA),
and the Caribbean
Basin Trade Partnership
Act (CBTPA) provides for
freer market access
if the signatory countries
respect workers’ rights.
While the
report acknowledges
that these
agreements have not solved
the problems
in Central
America, it
argues that
they have
stopped many
egregious violations
from continuing.
The Endowment
is further
concerned that CAFTA would
be negotiated
without any
labor provisions,
due to
pressure from
U.S. corporations.
Sandra
Polanksi authored
the report
and also
helped negotiate
the free
trade agreement
with Jordan,
which was
supposed to
lay the
groundwork for
effective labor
provisions in
trade. She
says that
Central America
is different
than Jordan
because the
countries “have glaring weaknesses in their
laws, inadequate enforcement, and judicial systems that fall short of any
reasonable standard for the rule of law”.
“
Central America Deal Must Boost Labour Rights” --Emad Mekay, Inter-Press
Service. February 19, 2003
USTR to Keep Chile, Singapore
Trade Texts Confidential, Democrats Concerned
In January,
the U.S. Trade Representative
announced that
it would keep
the texts confidential for the proposed
free-trade agreements
with Chile
and Singapore, until the
deals
are finalized
and no further
changes can be made. The
USTR will then release
the texts to Congress, which
would lead to a
three-month review
before signing.
The USTR
has decided to
keep the texts confidential
because of
the difficulties
that would ensue if
members of
Congress wanted
to change a provision
during the
process. The Advisory
Committee on
Trade Policy
and Negotiations (ACTPN)
will present
a congressional report
within thirty
days of notification.
USTR Robert Zoellick
announced that
he planned
to notify Congress
of the Chile
and Singapore
deals by
the end of
January 2003.
In
response to
this announcement,
House Democrats
wrote a
letter to
President Bush,
the letter
states “In your letters to Congress, you stated
that both agreements promote your administration’s commitment to…open
new opportunities for America’s workers, farmers, businesses and
consumers in global trade…We believe that they should have the right
to judge that for themselves”.
“
USTR to Keep Chile, Singapore Deals Confidential After Notifications” Inside
US Trade. January 10, 2003
“
House Dems Urge White House to Release Chile, Singapore Text” Congress
Daily AM. February 14, 2003
The second round of CAFTA
negotiations is taking place right now in Cincinnati! This is the beginning
of a yearlong process and the working people of the U.S. and Central America
need your support. As a U.S. Representative, you have a duty to represent
the perspectives of your constituency, therefore, we ask that you:
•
Demand that the United States Trade Representative (USTR) disclose CAFTA
negotiating documents to the Congressional Oversight Group (COG) as well
as the public;
•
Call on the USTR to include civil society representatives in the negotiating
process, including labor, environmental, and human rights groups;
•
Demand that any trade agreement created with the countries in Central America
contain parity of enforcement for labor and environmental standards vis-à-vis
commercial provisions; provide transparency in any dispute resolution mechanisms
created by the agreement; and will not jeopardize the ability of any country
to promote national policies to ensure food security
