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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)