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Nearly Half of Costa Rica Voters Reject CAFTA |
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The people of Costa Rica on Sunday became the first ever to vote on whether they want a trade deal with the United States. The pundits who predicted a sweeping victory for supporters of the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) were proven wrong. Despite huge sums spent by the pro-CAFTA forces, the referendum for the trade deal passed by a narrow margin—51.48 percent to 48.42 percent.
U.S. Trade Representative Susan Schwab and Ambassador Mark Langdale made statements implying that if the people of Costa Rica reject the trade agreement, the Bush administration might withdraw preferred trade status from Costa Rica. But House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) wrote letters making it clear that the two issues are not related.
Costa Rica is the only one of the seven signers that has not ratified the deal, which is modeled after the seriously flawed North American Free Trade Agreement (NAFTA).
According to a study by the Economic Policy Institute (EPI), NAFTA has failed workers in Mexico, Canada and the United States:
- In each nation, while workers’ productivity grew, workers’ salaries remained stagnant or dropped and the wealth of those at the top increased significantly.
- More than 1 million jobs that would have been created were lost in the United States.
- In Mexico, many of the new jobs that were created were low-wage with no benefits and no future.
Supported by the AFL-CIO and the International Trade Union Confederation (ITUC), a strong coalition of workers’ unions, farmers, community leaders and human and civil rights activists led a massive campaign to vote “No” on the deal. On Sept. 30, more than 100,000 people marched in the capital of San José to protest CAFTA, one of the largest protests in the history of Costa Rica.
Tom Loudon, who is blogging from Costa Rica for the Alliance for Responsible Trade, reports Costa Rica’s workers were energized and determined to stop the deal:
Costa Ricans came out to the polls with faith in the process. “The energy of the people moved me to tears as I entered my first center as an international observer,” said Jessica Walker Beaumont of the Alliance for Responsible Trade.
“Not only were people empowered by the opportunity to have a voice in the process, but it was also clear that for Costa Ricans, CAFTA and global trade have become household issues.”
Even though the treaty was barely approved, opponents of CAFTA are not daunted. Jorge Arguedas Mora, president of ANTTEC, the electrical and telephone workers union, tells Loudon:
There is consensus that we will not allow the implementation agenda and will continue to fight against the deliverance of our fundamental institutions to multinational corporations. Tomorrow begins the fight against the 13 laws that will facilitate the implementation of the agreement.
U.S. and Central American workers oppose CAFTA because, like NAFTA before it, this deal would destroy good jobs and force vital services to be privatized. In a letter to Capitol Hill, AFL-CIO Legislation Director William Samuel said:
CAFTA has so far failed to improve working conditions in Central America. The continued abuse of workers in these nations, up to and including murder, only goes to underscore that a new model is urgently needed if workers are to enjoy basic labor rights, and with them, a better standard of living.
It is time for an honest assessment of current trade policy and a decisive change in course toward agreements that are truly world class. Otherwise, our trade policy will continue to fail workers both in the United States and abroad.
Congress must act to put the United States on the right track—by reasserting control on trade policy and taking us in a new direction.
Click here to read a full copy of the letter.
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