A-Infos (en) US, NAF* Firebrand Issue #3 - The Central American Free Trade Agreement by Ella Powers

To: <a-infos-en@ainfos.ca>
Subject: US, NAF* Firebrand Issue #3 - The Central American Free Trade Agreement by Ella Powers

Under CAFTA (as under NAFTA) laws  protecting labor, the environment
and consumers would be in jeopardy if they  are seen as 'barriers to trade'.
 The Central American Free Trade Agreement (CAFTA) was signed last
year by Bush administration officials after trade ministers in El Salvador,
Guatemala, Honduras, Nicaragua, Costa  Rica and the Dominican
Republic completed negotiations with the United States
(CAFTA is modeled after the North American Free Trad
Agreement, NAFTA, but will include both goods and serv
ices.) Under CAFTA (as under NAFTA) laws protectin
labor, the environment and consumers would be in jeopard
if they are seen as 'barriers to trade'. The oversight of thes
agreements is outside of state and local governance, an
unelected trade tribunals operating on the investment rule
of specific trade agreements. Lawsuits related to free trad
under NAFTA are costing U.S., Canadian, and Mexica
taxpayers millions of dollars and jeopardizing our abili-
ty to maintain basic human rights. CAFTA will likely be
submitted to the Congress for ratification this spring, as
soon as its supporters feel they have a potential majori-
ty. As the ratification process begins, we must hold our
elected Oregon representatives accountable and urge
them to vote 'no' on CAFTA.
  NAFTA resulted in the loss of 900,000 U.S. manufac-
turing jobs; at least 14,000 of these job losses occurred
here in Oregon. One recent example of how free trade
policies are affecting Oregon is the closing of the
Amalgamated Sugar Company's beet processing opera-
tion in Nyssa, OR. A press release from Amalgamated
stated "trade pressure from foreign producers" as a
major factor in the decision to close the plant that has
operated for 67 years and employed between 167 and 260
Oregonians. The consequences of NAFTA on the Mexican
economy are just as dramatic. Large corporations have
effectively decimated small and medium sized businesses.
1.5 million agricultural workers have been displaced.
Farms were run out of business by subsidized corn from the
United States. Now, deprived of their livelihoods, these
Mexican farmers have become economic migrants in search
of maquilla jobs. They are making increasingly desperate
efforts to cross the border into the U.S. Workers in both
the U.S., Canada and Mexico have suffered under NAFTA.
CAFTA will prove to be even more devastating.
  Under NAFTA, our public services and crucial social,
labor, and environmental regulations have been under
constant attack from greedy corporations. Closed trade
tribunals rule on law suits concerning state and local poli-
cies that corporations see as 'barriers to trade'.
-------------------------------------
CAFTA actually poses an even
   greater threat than NAFTA
 because it includes not only the
   movement of goods across
  nations, but also the trade of
services-- including the work of
doctors, nurses, teachers, librar-
ians, mail delivery, etc. Services
  make up 70 to 80% of the US
             economy.
-------------------------------

Recent cases involve UPS, Metalclad and the
Canadian Cattle Association. UPS is seeking $160
million in compensation from Canada, claiming
that its government-run parcel delivery system
undermines UPS market share.  Canadian cattle
producers are using NAFTA to demand $300
million  in compensation from U.S. taxpayer
funds, claiming that the Canadian cattle import
ban instituted after mad cow disease was found
cow disease was found
in Canadian beef violates their NAFTA rights. Under
NAFTA Metalclad sued the Mexican government after the
municipality of Guadalcazar denied Metalclad a construc-
tion permit. Metalclad wanted to build a toxic waste dis-
posal facility on a site that was already contaminated with
20,000 tons of toxic waste, but the community wanted the
area cleaned up before any new facilities were permitted.
Metalclad was awarded $15.6 million in compensation, to
be paid by the Mexican government. With only 11 of the
42 cases finalized, some $35 million in taxpayer funds
have been granted to these five corporations that have suc-
ceeded with their claims. An additional $28 billion has
been claimed from investors in all three NAFTA nations.
Seven cases against the United States are currently in
active arbitration.
   CAFTA actually poses an even greater threat than
NAFTA because it includes not only the movement of
goods across nations, but also the trade of services--
including the work of doctors, nurses, teachers, librarians,
mail delivery, etc. Services make up 70 to 80% of the US
economy. Under CAFTA, governments are prevented
from placing regulations that are deemed more burden-
some than necessary to business. Regulations regarding
where services can be provided, such as laws restricting
urban growth, development in sensitive ecological areas,
or toxic waste disposal, would be subject to challenge
  Privatization of public services and deregula-
tion are a central component of CAFTA.
Already, multinational corporations are lobby-
ing to gain access to postal, health care, edu-
cational and utility services in an effort to
expand their businesses.
State laws and municipal policies are frequently
attacked as 'barriers to trade' or 'state monopo-
lies'. The current campaign to privatize social
security is part of this trend. Profit, instead of
quality, is the goal in this ideological framework.
Deregulation and privatization would seriously compro-
mise and in some cases abolish, the enforcement of laws
intended to protect our basic human rights such as health
care, water, and education.     These services should not
be included in any trade agreement.
  In Portland a coalition of labor, environmental, student
and community groups has formed to
work against the passage of CAFTA.
Since President Bush is not likely to
submit CAFTA to the Congress for rat-
ification until he thinks it will pass, we
are working to make sure he can't count
on any votes from Oregon. Currently,
most of Oregon's congressional delega-
tion remain undecided on the agree-
ment. To date, Oregon Reps. Peter
DeFazio, Darlene Hooley and David
Wu have come out in opposition to
CAFTA. Reps. Earl Blumenauer and Greg Walden, and
Senators Ron Wyden and Gordon Smith remain noncom-
mittal. We urge them to step up and do the right thing, by
opposing the agreement. We must keep putting pressure
on them until they do.
     To contact your representative go to:
 http://www.unionvoice.org/campaign/No
                       OnCafta
  *Representative Earl Blumenauer (if you
live in OR,                and in district 3)
  *Representative Greg Walden (if you live
             in OR, and in district 2)
 *Senator Gordon Smith (if you live in OR)
  *Senator Ron Wyden (if you live in OR)
 To get involved locally in the fight against
  CAFTA, contact CBLOC\PCASC at 503-
                       236-7916.
    Rep. Blumenauer and Sen. Smith have
    announced plans to co-host a forum on
 trade and its effects on Oregon's economy,
with panels of experts from business, labor,
 environmental and governmental organiza-
   tions on Monday, May 2, from 9 AM to
  Noon at the University of Portland at The
  Buckley Center. Show up at 8:30 outside
     the event to hear speakers addressing
                CAFTA specifically.
--------------------
FIREBRAND - A VOICE FOR PORTLANDS RANK AND FILE WORKERS
ISSUE 3 Spring/Summer 2005 by NAF (Northwest Anarchist
Federation)

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