Full Text of the CAFTA Agreement (Available here)

CAFTA is not a simple trade agreement. CAFTA was negotiated behind our backs and it is based on a logic that favors profit over human rights and sustainability.

CAFTA gives us three big winners: the three agribusiness firms that control 82% of the world grain trade. Archer Daniels Midland and Cargill profits increased for ADM from $110M to $301M and Cargill’s from $468M to $827M. But since 1984 the real price of food has remained constant while the price farmers receive has fallen by 38%.

If implemented CAFTA would transform privileges for multinational company into rights that would have legal precedence over all secondary legislation in those countries.

Free trade can only be among EQUAL partners. U.S. subsidizes the big agribusiness plus distribution.

From Why We Say No to CAFTA from the Bloque Popular Centroamerico – (yes, from the Central American countries that we are told should benefit) that CAFTA would be the nail in the coffin of Central American Agriculture. Small Central American farmers will be forced out of business by the flood of cheap subsidized goods coming from the United States.

Investor rights or human right? Under CAFTA investments it will be left to the market. National investors treated the same as domestic; prohibits the use of performance requirements; limits the local government’s ability to impose regulations on foreign investors; allow foreign corporation to sue local governments; limit control of local and national governments control of public services such as water, education and other basic rights.

Presently the CAFTA Central American countries receive their main income from United States remittances. This enslaves the illegals here and the citizens in their home countries.

I have never read or studied anything in my life that has no redeeming qualities. It appears that a few multinational companies will starve or enslave 80% of the world’s population with this plan.

How many times have I written about "trade capacity building"? Its in the agreement, let's talk about it.

19-1
Chapter Nineteen
Administration of the Agreement and Trade Capacity Building
Section A: Administration of the Agreement
Article 19.1: The Free Trade Commission
1. The Parties hereby establish the Free Trade Commission, comprising cabinet-level
representatives of the Parties, as set out in Annex 19.1, or their designees.
2. The Commission shall:
(a) supervise the implementation of this Agreement;
(b) oversee the further elaboration of this Agreement;
(c) seek to resolve disputes that may arise regarding the interpretation or application
of this Agreement;
(d) supervise the work of all committees and working groups established under this
Agreement; and
(e) consider any other matter that may affect the operation of this Agreement.
3. The Commission may:
(a) establish and delegate responsibilities to committees and working groups;
(b) modify in fulfillment of the Agreement’s objectives:
(i) the Schedules attached to Annex 3.3 (Tariff Elimination), by accelerating
tariff elimination;
(ii) the rules of origin established in Annex 4.1 (Specific Rules of Origin);
(iii) the Common Guidelines referenced in Article 4.21 (Common Guidelines);
and
(iv) Annexes 9.1.2(b)(i), 9.1.2(b)(ii), and 9.1.2(b)(iii) (Government
Procurement);
(c) issue interpretations of the provisions of this Agreement;
(d) seek the advice of non-governmental persons or groups; and
19-2
(e) take such other action in the exercise of its functions as the Parties may agree.
4. Each Party shall implement, in accordance with its applicable legal procedures, any
modification referred to in subparagraph 3(b) within such period as the Parties may agree.
5. The Commission shall establish its rules and procedures. All decisions of the
Commission shall be taken by consensus, unless the Commission otherwise decides.
6. The Commission shall convene at least once a year in regular session, unless the
Commission otherwise decides. Regular sessions of the Commission shall be chaired
successively by each Party.
Article 19.2: Free Trade Agreement Coordinators
1. Each Party shall appoint a free trade agreement coordinator, as set out in Annex 19.2.
2. The coordinators shall work jointly to develop agendas and make other preparations for
Commission meetings and shall follow-up on Commission decisions, as appropriate.
Article 19.3: Administration of Dispute Settlement Proceedings
1. Each Party shall:
(a) designate an office that shall provide administrative assistance to the panels
established under Chapter Twenty (Dispute Settlement) and perform such other
functions as the Commission may direct; and
(b) notify the Commission of the location of its designated office.
2. Each Party shall be responsible for:
(a) the operation and costs of its designated office; and
(b) the remuneration and payment of expenses of panelists and experts, as set out in
Annex 19.3.
Section B: Trade Capacity Building
Article 19.4: Committee on Trade Capacity Building
1. Recognizing that trade capacity building assistance is a catalyst for the reforms and
investments necessary to foster trade-driven economic growth, poverty reduction, and adjustment
to liberalized trade, the Parties hereby establish a Committee on Trade Capacity Building,
comprising representatives of each Party.
19-3
2. In furtherance of the Parties’ ongoing trade capacity building efforts and in order to assist
each Central American Party and the Dominican Republic to implement this Agreement and
adjust to liberalized trade, each such Party should periodically update and provide to the
Committee its national trade capacity building strategy.
3. The Committee shall:
(a) seek the prioritization of trade capacity building projects at the national or
regional level, or both;
(b) invite appropriate international donor institutions, private sector entities, and nongovernmental
organizations to assist in the development and implementation of
trade capacity building projects in accordance with the priorities set out in each
national trade capacity building strategy;
(c) work with other committees or working groups established under this Agreement,
including through joint meetings, in support of the development and
implementation of trade capacity building projects in accordance with the
priorities set out in each national trade capacity building strategy;
(d) monitor and assess progress in implementing trade capacity building projects; and
(e) provide a report annually to the Commission describing the Committee’s
activities, unless the Committee otherwise decides.
4. During the transition period, the Committee shall meet at least twice a year, unless the
Committee otherwise decides.
5. The Committee may establish terms of reference for the conduct of its work.
6. The Committee may establish ad hoc working groups, which may comprise government
or non-government representatives, or both.
7. All decisions of the Committee shall be taken by consensus, unless the Committee
otherwise decides.
8. The Parties hereby establish an initial working group on customs administration and trade
facilitation, which shall work under and report to the Committee.
19-4
Annex 19.1
The Free Trade Commission
The Free Trade Commission shall be composed of:
(a) in the case of Costa Rica, the Ministro de Comercio Exterior;
(b) in the case of the Dominican Republic, the Secretario de Estado de Industria y
Comercio;
(c) in the case of El Salvador, the Ministro de Economía;
(d) in the case of Guatemala, the Ministro de Economía;
(e) in the case of Honduras, the Secretario de Estado en los Despachos de Industria y
Comercio;
(f) in the case of Nicaragua, the Ministro de Fomento, Industria y Comercio; and
(g) in the case of the United States, the United States Trade Representative,
or their successors.
19-5
Annex 19.1.4
Implementation of Modifications Approved by the Commission
1. In the case of Costa Rica, decisions of the Commission under Article 19.1.3(b) will be
equivalent to the instrument referred to in article 121.4, third paragraph (protocolo de menor
rango) of the Constitución Política de la República de Costa Rica.
2. In the case of Honduras, decisions of the Commission under Article 19.1.3(b) will be
equivalent to the instrument referred to in article 21 of the Constitución Política de la República
de Honduras.
19-6
Annex 19.2
Free Trade Agreement Coordinators
The free trade agreement coordinators shall consist of:
(a) in the case of Costa Rica, the Director General de Comercio Exterior;
(b) in the case of the Dominican Republic, the Subsecretario de Estado de Industria y
Comercio Encargado de Comercio Exterior;
(c) in the case of El Salvador, the Director de la Dirección de Administración de
Tratados Comerciales del Ministerio de Economía;
(d) in the case of Guatemala, the Director de Administración de Comercio Exterior
del Ministerio de Economía;
(e) in the case of Honduras, the Director General de Política Comercial e
Integración Económica de la Secretaría de Estado en los Despachos de Industria
y Comercio;
(f) in the case of Nicaragua, the Director General de Comercio Exterior del
Ministerio de Fomento, Industria y Comercio; and
(g) in the case of the United States, the Assistant United States Trade Representative
for the Americas,
or their successors.
Annex 19.3
Remuneration and Payment of Expenses
1. The Commission shall establish the amounts of remuneration and expenses that will be
paid to panelists and experts.
2. The remuneration of panelists and their assistants, experts, their travel and lodging
expenses, and all general expenses of panels shall be borne equally by the disputing Parties.
3. Each panelist and expert shall keep a record and render a final account of the person’s
time and expenses, and the panel shall keep a record and render a final account of all general
expenses.

Free trade? Why the restrictions?

- 4 - DRAFT
Subject to Legal Review for Accuracy, Clarity, and Consistency
Sector:
Obligations Concerned:
Level of Government:
Measures:
Description:
January 28, 2004
Mining
National Treatment (Article __)
Most-Favored-Nation Treatment (Article __)
Central Mineral Lands Leasing Act of 1920, 30 U.S.C. Chapter 3A 10 U.S.C. § 7435
Investment
Under the Mineral Lands Leasing Act of 1920, aliens and foreign corporations may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from oil and gas, across onshore federal lands or acquire leases or interests in certain minerals on on-shore federal lands, such as coal or oil. Non-U.S. citizens may own a 100 percent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore
federal lands, or that acquires a lease to develop mineral resources on on-shore federal lands, unless the foreign investor’s home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own citizens or corporations or to the citizens or corporations of other countries (30 U.S.C. §§ 181, 185(a)).
Nationalization is not considered to be denial of similar or like privileges.
Foreign citizens, or corporations controlled by them, are restricted from obtaining access to federal leases on Naval Petroleum Reserves if the laws, customs, or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States (10 U.S.C. § 7435).

This is the information sheet that will be up on my website (thotline.com) by the end of the week. It will also have opinion sheets that you can send to your members of Congress.

Let me know what you think. I have to do this on one page...

BACKGROUND:

CAFTA is a proposed trade agreement that will provide free trade between the United States, the Dominican Republic and five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.

This proposal follows on the heels of the North American Free Trade Agreement (NAFTA) and the repeated issues of Most Favored Nation trading status for countries such as China.

Free trade is a principle many of us embrace, equality is another. Businesses in the U.S. have various labor law requirements and alphabet agency regulations that find no equal in Central American countries; therefore, making trade equal without making these business demands equal gives a great trade advantage to the other countries.

This is the growing argument against CAFTA: Why would the U.S. government require so many worker protection, environmental protection and wage guarantees inside its own country, then reward businesses who do not have such a regulatory burdens and worker protections?

CAFTA — Chapter Sixteen — Labor

Each country is to enforce it’s own labor laws. Each
country decides what those laws are, what regulations
are issued, and what wages are legal.

Although CAFTA will prohibit the use of any form of forced or compulsory labor, it does not set standards for the minimum age of child workers, work conditions, minimum wage law, environmental protection, and hours of work. Those issues are left up to the various countries, who, will then have sole enforcement “duties” in dealing with any infractions of their own laws.

From the Act:

“Article 16.2 (b): Each Party retains the right to exercise discretion with respect to investigatory, prosecutorial, regulatory, and compliance matters and to make decisions regarding the allocation of resources to enforcement with respect to other labor matters determined to have higher priorities. Accordingly, the Parties understand that a Party is in compliance with subparagraph (a) where a course of action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide decision regarding the allocation of resources.”

The Agreement refers to “internationally recognized labor rights,” then (in 16.3 (2) (b)) addresses the procedures that deal with possible violations by requiring “any hearings in such proceedings are open to the public, except where the administration of justice otherwise requires;” So, the hearings must be in public unless they don’t want them to be, and they are solely responsible for their own laws and regulations, and whatever enforcement of them that they deem necessary.

From the Office of the United States Trade Representative:

“Expanded Markets for U.S. Farmers and Ranchers: More than half of current U.S. farm exports to Central America and the Dominican Republic will become duty-free immediately, including high-quality cuts of beef, soybeans, cotton, wheat, many fruits and vegetables, and processed food products. Tariffs on most U.S. farm products will be phased out within 15 years, with all tariffs eliminated in 20 years. Important U.S. sectors will benefit, including corn, beef, pork, poultry, rice, dry beans, dairy, and vegetable oil. The U.S. will work with Central America and the Dominican Republic to resolve sanitary and phytosanitary [plant cleanliness] barriers to agricultural trade, especially problems in food inspection procedures for meat and poultry.”

The statement says that the “majority” will be treated on way, then says that “most” will be treated another, so it’s contradictory. It starts out by explaining the opening of markets for U.S. farmers and ranchers, then addresses the problems of the cleanliness and inspection procedures of the foods of the other countries. That would only be a problem if those goods were to be imported to this country.

What CAFTA Would Do:

It would immediately drop some, then eventually drop
other tariffs concerning goods from five Central American countries, the Dominican Republic and the U.S.
Establish a framework for trade and worker’s rights that
each nation will manage and enforce on its own.

Arguments FOR CAFTA:

Other nations, such as China, Mexico and Canada, already have beneficial trade agreements with the United States. CAFTA will provide an equally open market for these Central American countries.

This Agreement is necessary for the Central American countries to compete with the Asian imports.

Central America needs the support of the United States to keep its fragile democracies intact. CAFTA is a way for America to support freedom, democracy and economic reform in our own neighborhood.

CAFTA will deal with the tariffs that hurt the U.S. manufacturers of construction equipment, automobiles and information technology products.

Arguments AGAINST CAFTA:

The unequal treatment of labor law, worker safety regulations and environmental concerns place costs on the U.S. businesses that become an unfair advantage to those who export to the U.S.. CAFTA doesn’t address this disadvantage that hits the small businesses in the U.S.; it makes it worse.

The U.S. Trade Representative admits that 80% of the imports from the Central American countries already enter the U.S. duty free because of other programs. Despite this free trade, the other countries still levy duties on U.S. goods.

Allowing other countries to make their own laws, then enforcing them to their own liking, is respectful of their sovereign state, but it rewards lower wages and lower (if any) standards of worker safety and environmental care.

If this trade agreement is successful, it will be used to multiply new agreements with Panama and other countries.

For More Information: Office of the United States Trade Representative (www.ustr.gov)
AFL-CIO (www.aflcio.org/globaleconomy)

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