CAFTA Signed
by Central American Presidents
June 1, 2004
On Friday, May 28th, U.S. Trade Representative
Robert Zoellick, together
with the presidents of El Salvador, Costa Rica,
Guatemala, Honduras and
Nicaragua signed the final draft of the Central
American Free Trade
Agreement (CAFTA). While in December of 2003
the six nations came to
what could be considered a “gentleman’s
agreement” on the conditions for
CAFTA, Friday’s signing marked the release
of the official legal and
binding terms of CAFTA.
With CAFTA now signed, the Bush administration,
and the Central American
presidents, can send the agreement to their
respective congresses
whenever they deem most appropriate, e.g., when
the think they can
muster the votes. Once sent to Congress in the
U.S., the House and
Senate have a maximum of 60 days to review,
debate and vote on CAFTA.
Under the Fast Track Trade Promotion Act, the
vote will be decided by a
simple majority in a straight up or down vote;
no provisions exist for
making adjustments to the existing agreement.
Lacking support in Congress from Democrats
and Republicans alike, the
Bush administration acknowledged that a congressional
vote on CAFTA
would happen later than they hoped. U.S. officials
say that the
earliest CAFTA will be voted on is following
the elections, in what is
referred to as the lame-duck congressional session
between November and
early January.
The New York Times reported, “Rep. Sander
M. Levin of Michigan, the top
Democrat on the House Ways and Means Trade Subcommittee,
predicted the
agreement “is on a midnight train to nowhere
— in an election year or
any year.”” That said, many predict
that following the elections some
Democrats might soften their position on CAFTA,
making its passage more
feasible.
Presidential candidate Senator Kerry has said
that if elected he will
renegotiate CAFTA to include stronger labor
and environmental laws.
Strengthening CAFTA’s dismally weak labor
and environmental standards
would be an important first step in creating
a just trade agreement
between Central America and the United States.
Critics argue, however,
the most damaging norms of the agreement relate
to agriculture, public
services and intellectual property rights. While
banning child labor is
important, they argue so is assuring that Central
American’s living in
the rural sector (over 40%) aren’t expelled
in mass by subsidized US
agriculture. Similarly, while slowing deforestation
is critical, so is
assuring that public healthcare, education and
water are not privatized
and thereby made inaccessible to the poor.
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