CAFTA: Worker Rights Disrespected

As expected, U.S. negotiators for the Central American Free Trade Agreement (CAFTA) have proposed weak worker rights provisions based on those contained in the recently-negotiated trade agreements with Chile and Singapore. At a negotiating session in mid-May in Guatemala, Bush Administration negotiators proposed to their Central American counterparts that CAFTA signatories be required to do no more than enforce their own labor laws, whether or not their labor laws fall short of international standards.

The proposal represents a significant step backwards from worker rights protections currently provided under the Generalized System of Preferences (GSP) and other unilateral U.S. trade programs which set as their standards "internationally-recognized worker rights." These are defined as the right to organize, right to collective bargaining, no forced labor, no child labor, and acceptable conditions with respect to wages, hours, and working conditions. In addition, the CAFTA proposal would establish a cumbersome, closed and limited system of fines for violators, rather than GSP's relatively transparent system which also offers much tougher trade penalties for violators.
In public comments on CAFTA and worker rights submitted in early June to the U.S. Department of Labor, USLEAP focused on the absence of core worker rights in the maquiladora sector and argued that the worker rights provisions of CAFTA should not be a step backwards from those of GSP and other U.S. trade programs. (USLEAP's comments are available on the USLEAP website. A much more extensive set of comments by the AFL-CIO are available at www.aflcio.org/issuespolitics/globaleconomy/upload/CAFTA.pdf. They represent the best survey of the current worker rights situation in Central America.

Since it is highly unlikely that Central American governments will propose a strengthening of the worker rights provision during CAFTA negotiations, the weak proposal from the Administration guarantees that worker rights will be a key issue for Congressional debate when a final agreement is eventually presented to Congress for an up-or-down vote (no amendments are allowed under the "fast track" procedures approved by Congress in 2002). The leading House Democrat on trade issues, Rep. Sander Levin, D-CA, warned the Administration in early June that weak worker rights provisions could risk passage of CAFTA.

USTR has said it will encourage Central American governments to strengthen their labor laws to ensure compliance with international standards but few expect to see significant improvements in labor law unless it is a precondition of CAFTA. On the plus side, the growing focus on worker rights in public debate about CAFTA has persuaded some Central American governments to take on high-profile worker rights cases in an effort to project a better public image with the U.S. Congress. The most obvious example of this public relations effort is the sharp turn-around by the Guatemalan government to require respect for core worker rights at the Choi & Shin's factories, unexpectedly demanding that the company sign a collective bargaining agreement or face closure. Other high-profile cases may also get some unusual attention in the coming months (at least up until the night of the CAFTA vote in Congress).

CAFTA is based on the North American Free Trade Agreement (NAFTA). Passage of CAFTA is expected to advance slow-moving negotiations for hemispheric trade agreement, the Free Trade Area of the Americas (FTAA).

For more information on CAFTA and how to get involved in CAFTA campaigns, contact CISPES at cafta@cispes.org, visit www.cispes.org/cafta, or call 212-465-8115, Quest for Peace at 301-699-0042, or NISGUA at 202-518-7638.