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CIS
Boulevard Universitario #4
Colonia El Roble
San Salvador, El Salvador
Centroamérica
Tel/FAX: +503 226-2623
cis_elsalvador@yahoo.com
"Lame duck session" began yesterday amid reports of Republicans' intent to push CAFTA through Congress.  Call and write your Senators and Representatives. Demand that they
vote 'NO' to CAFTA!

November 17, 2004

The last formal congressional session of 2004 began yesterday. While certain mainstream media sources have mentioned likely congressional votes on spending bills left over from the October session, less has been said about the possible post-election effort to ratify the Central American Free Trade Agreement (CAFTA). [1]  The Centro de Intercambio y Solidaridad (CIS)   joins the Stop CAFTA Coalition  in urging U.S. Citizens to contact their elected officials in Congress during this "lame duck session" to voice their opposition the trade agreement. We need to call and write our Senators and Representatives to ensure that CAFTA does not slip through Congress during this traditionally low profile session.

You can find contact information for Senator's and House Representative's Washington, DC offices at the following web site:

It is important that you contact them even if they have already taken a stand against CAFTA. Your call, letter or email will let them know that you support their current position, while at the same time underlining the trade agreement's fundamental flaws.

Below are talking points, a draft letter, and a list of web resources for further reading about CAFTA.
 

Some talking points:

  1. Examining the results of NAFTA can give us an idea of the likely impact CAFTA will have on both Central America and the United States:
bulletBased on data provided by the U.S. Department of Agriculture, the organization Public Citizen estimates that 33,000 small farms (under $100,000 in annual sales) in the United States disappeared during the first 7 years of NAFTA. This represents a small-farm foreclosure rate 6 times that of the previous five-year period. CAFTA will remove tariff protection on important agricultural commodities in both Central America and the United States, which will ultimately lead to greater small farm foreclosure and higher profits for agribusiness. [2]
 
bullet
The Economic Policy Institute concluded that by 2000--as a result of NAFTA related incentives to relocate manufacturing--the United States had lost 766,000 jobs and job opportunities. CAFTA replicates the same trade model that led to the loss of these jobs and job opportunities.
 
bullet
Official World Bank and Mexican government statistics show that there has been little job creation overall in Mexico since the implementation of NAFTA, and--despite initially strong growth--the manufacturing sector has experienced a net loss of jobs. [3] What jobs are created under CAFTA will furthermore be regulated by weak labor provisions, which consist mainly of entreaties that signatory nations enforce existing domestic laws and international agreements. [4]
 
bullet
CAFTA contains protection for investors even more far-reaching than NAFTA´s "Chapter 11," which allows corporations to sue signatory governments if they feel their ability to turn a profit is impeded by environmental or other regulations. [5] Corporations have already filed $14.3 billion in such claims under NAFTA. [6]
  1. CAFTA Chapter 15 expands intellectual property rights, placing smaller agricultural producers at greater risk of prosecution by patent holding companies in the event that their traditional crops cross-pollinate with patented, genetically modified varieties. [7]
     
  2. The provisions included in the Chapter on Environment (17), presented as a guarantee of sustainable development, are vague and largely unenforceable. The majority of the chapter is devoted to entreaties that signatory nations improve their domestic legislation, and ratify international agreements such as the Kyoto Protocol and Cartagena Protocol on Biosecurity.[8]
     

Sample letter to your elected officials:

Dear_____________,

I contact you today because of my concern that Congress will ratify the Central American Free Trade Agreement (CAFTA) during this final 2004 congressional session. I ask that you vote 'no' to the implementing legislation of this trade agreement because of the threat it poses to living standards across Central America as well as in the United States. 

In Central America, importers and agribusiness in stand to benefit the most from CAFTA. The expanded "dumping" of U.S. agricultural products (namely basic grains like rice, beans and corn) in Central American markets will destroy already weak domestic food production. This blow to small-scale production will compel producers to sell and/or abandonment their plots, which in turn will promote a re-concentration in land ownership.  The limited profitability of basic grain production will obligate Central American nations to import even larger amounts to cover domestic demand, placing at greater risk national access to food in the event of further economic hardship. Those displaced from the agricultural sector will be forced to migrate to urban areas and abroad in search of work.

The picture is not much rosier for U.S. agricultural producers. The organization Public Citizen estimates that 33,000 small farms (under $100,000 in annual sales) in the United States disappeared during the first 7 years of NAFTA. The ratification of CAFTA will continue this trend, further opening the U.S. domestic market to foreign agricultural products, and setting further precedent for later liberalization of currently protected sectors (such as sugar).

Similarly worrisome is CAFTA's failure to protect basic labor rights, which are already abysmal in much of Central America. In a manner similar to the Chapter on Environment, it contains vague entreaties that signatory nations improve their domestic legislation. While the promise of new jobs in the region may prove illusory in its own right, more people working under unjust conditions and receiving an unjust wage will contribute little to the ultimate development of Central American societies.

The Central American Free Trade Agreement is just one manifestation of a trade model that, while creating macroeconomic success, has lowered the living standards of many across the Americas. For the well being of the citizens of our nation, as well as the residents of Central America, I ask that you vote against ratification of CAFTA.

I look forward to learning how you voted on this issue.

Sincerely,

 
Your Name
Address
 
 
Notes:
[1] "Congress to Return for Lame Duck Session," Associated Press. November 13, 2004. < http://abcnews.go.com/Politics/wireStory?id=249826&CMP=OTC- RSSFeeds0312 >; "Congress back for lame-duck session on spending bills," USA Today. November 14, 2004. < http://www.usatoday.com/news/washington/2004-11-13-lame-duck- congress_x.htm >
 
[2] R. Dennis Olson. "Agriculture," Why We Say NO to CAFTA: Analysis of the Official Text. March 2004: 2-3.
 
[3] Timothy A. Wise and Kevin P. Gallagher. "NAFTA: A Cautionary Tale," Inter-Hemispheric Resource Center: Americas Program. October 24, 2002. < http://www.americaspolicy.org/commentary/2002/0210ftaa_body.html >
 
[4] Ariane Grau and Omar Salazar. "Labor," Why We Say NO to CAFTA: Analysis of the Official Text. March 2004: 33.
 
[5] R. Dennis Olson. "Agriculture," Why We Say NO to CAFTA: Analysis of the Official Text. March 2004: 2. < http://www.citizen.org/documents/WhyWeSayNOtoCAFTA.pdf >
 
[6] Public Citizen's Global Trade Watch. "CAFTA by the Numbers: What Everybody Needs to Know," July 2004. < http://www.citizen.org/documents/CAFTAbyNumbers.pdf >
 
[7] R. Dennis Olson. "Agriculture," Why We Say NO to CAFTA: Analysis of the Official Text. March 2004: 3-4. < http://www.citizen.org/documents/WhyWeSayNOtoCAFTA.pdf >

[8] Angel Ibarra. "Environment," Why We Say NO to CAFTA: Analysis of the Official Text. March 2004: 27.
 
 
Other Resources/Information:
 
An entire draft of the CAFTA text can be downloaded from the following website:
 
Individual sections of the text can be accessed at:
 
Stop CAFTA Coalition Homepage:
 
Washington Office on Latin America (WOLA) CAFTA briefing:
 
Information on NAFTA from Public Citizen:
 
Information on CAFTA from Public Citizen:
 
Carnegie Endowment for International Peace:
 
United State Trade Representative:



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