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"No FTAA" Campaign Update

by the Communication Workers of America

posted January 20, 2003

Contents

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Lula's Inauguration

January 1st did see the inauguration of Worker's Party President of Brazil, Ignacio "Lula" da Silva. Tens of thousands of supporters filled the esplanade in front of the Congress building, they camped out to celebrate, sing, dance, eat and drink. Meanwhile, heads of state from around the world attended to celebrate the election of a man who once was a factory worker.

Hugo Chavez, President of Venezuela, and Fidel Castro of Cuba got the most attention, with Chavez inviting President da Silva to join them in a Latin American "axis of good". The US was not represented by our President or Vice President - instead by US Trade Representative Robert Zoellick.

"During the recent campaign, Mr. da Silva sarcastically dismissed Mr. Zoellick as "the subsecretary of a subsecretary of a subsecretary" after the American official suggested that Brazil would be reduced to exporting to Antartica if it shunned the Bush administration's plan for a Free Trade Area of the Americas."

"It's natural that the American president wouldn't come to Brazil on this date," José Genoino, president of the Workers Party, complained in a newspaper interview Monday. "But he could have sent a representative with more weight. But never mind. That's how the Americans are."

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CAFTA Talks Start - so do Protests

The Central American Free Trade Area (CAFTA) talks began on January 8th, between the US and Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The goal is to complete the talks by the end of 2003. USTR Zoellick said that the growth will "help deepen democracy, the rule of law, and sustainable development" while complementing "our vital work on the Free Trade Area of the Americas" (FTAA).

The USTR announced 50 projects to assist the countries negotiate with the US, including improving food safety in the CAFTA areas. Among the projects are computers for negotiations, websites to collect public comments. 74% of the products entering the US from the CAFTA area are already arriving duty-free.

Meanwhile protests in El Salvador over the push to further privatize the public health system led this week to protestors taking over the cathedral in San Salvador. This was the first time that protestors had occupied the cathedral since the peace accords of 1992. The protests over privatization of public services - health care, education, electricity generation, water systems - have come from watching the adverse impacts of the take over by multinational corporations throughout the Americas.

Agriculture products, generally grown by smaller farms in the CAFTA region will have to compete with products from the US which benefit from the massive subsidies of the US Farm Bill. When the tariffs on imports are removed, the products of agribusiness will drive the small farmers off their land in the CAFTA areas (much like what is happening to the Mexican farms today under NAFTA).

"Launching CAFTA talks is not going to overcome opposition to NAFTA expansion in South America any more than tax breaks on dividends will replace more good jobs lost to NAFTA-style trade deals," Lori Wallach of Global Trade Watch said.

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NAFTA - Mexican Farmers Protest

January 1st saw the removal of more of the tariffs on agricultural products entering Mexico from the US and Canada. Corn, beans and powdered milk are protected until 2008, but imports of chicken (where the 59% tariff was just removed) are expected to wipe out the Mexican producers.

Mexico was once self-sufficient in basic grains, but now imports 95% of its soy, 58% of its rice, 49% of its wheat, and 40% of its meat. Estimates are that 70% of the workers in the pork industry will lose their jobs with the NAFTA imports. The farmers displaced off their land when they cannot compete against the imports of heavily subsidized US products have to go somewhere. Some will move into the maquila (free trade low wage factory) zones to work, others will cross the border to head to the US to find any kind of work to support their families.

The protests by the farmers on the border of the US and Mexico have led to blockades, hunger strikes, and pleas for their government to re-negotiate the agriculture provisions of NAFTA. The government of President Fox has said that they will not take that option.

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FTAA & Bi-laterals Ahead

The FTAA talks are continuing around the Americas, with a Ministerial (top trade representatives) meeting set for Miami in November. With a goal to have the FTAA (Free Trade Area of the Americas) covering the Americas from the Arctic to Tierra del Fuego completed by the end of 2004, this year will be an important one in the process.

Meanwhile, the President has given Congress notice of intent to start more trade agreements in addition to the FTAA, CAFTA, and the recently completed Chile and Singapore Agreements. Upcoming are: Morocco, South African Customs Union, and by mid-year talks will start with Australia.

January 13 - 17, the summit of the African Growth and Opportunity Act (AGOA), will take place in Mauritius. While President Bush had been scheduled to attend, Colin Powell and Commerce Undersecretary Grant Aldonis will go instead. The Police Commissioner of has announced that no protests or marches will be allowed during the summit. The group of non-governmental organizations (NGOs), unions and environmental groups has gone to court in an effort to restore their democratic right to protest. Mauritius includes the island of Diego Garcia where the US has a military base, which protesters believe is illegal.

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Numbers Lie

As the year ended the Trade Deficit topped $400 Million, with only 16.5 million factory jobs. The loss of jobs, 1.8 million, in just the last 2 years has led the US to have the lowest number of factory jobs in 40 years.

US corporations will have to invest in the US, with jobs here in the US. American workers cannot survive the "race to the bottom". When workers here compete against workers in countries who have no right to negotiate a labor contract (China for example), or who don't know they have a contract (as happens with some unions in Mexico), we cannot benefit from "free trade".

Congress Member Bernie Sanders (Independent of Vermont) wrote a December 31st article in the Chicago Tribune. The article, based upon the closure of a Maytag appliance factory, moving to Mexico, highlighted the problems that NAFTA has brought to the manufacturing in the US.

You can find the article in the archives of the Chicago Tribune, but you will need to register (for free) in order to access the article.

http://www.chicagotribune.com/news/opinion/oped/chi-0212310234dec31.1.6985765.story

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Materials to Order

"Trade Secrets: The Hidden Costs of the FTAA" is a new 16 minute video tape from the perspective of labor on the FTAA. Narrated by Mike Farrell, it covers the NAFTA Chapter 11 cases on UPS, and Methanex' attack on California's environmental laws banning MTBE from gasoline, and how the FTAA will affect us.

There is also a set of fact sheets and great interactive role play on the impacts on the public and private sectors of the FTAA. The materials come from the UC Berkeley Center for Labor Research and Education. You can reach Producer Jeremy Blasi at (510) 642-1583 or email:
blasi@uclink.berkeley.edu

Also available - "End Corporate Control Stop the FTAA, An Organizers Manual - Fall 2002" you can download the "zine" or order copies for the price of shipping from: mkennis@faireconomy.org

Trading Democracy - Moyers videos

The issues of transparency - and NAFTA Chapter 11 are well explained Bill Moyers' Reports: Trading Democracy. The impact is carried further when you remember that the same "lack of transparency" (as in secret courts make the decisions) are included in the Chile and FTAA agreements.
Order a copy of the video - $7 each and watch it - share the stories of Metalclad - where $16 million was paid by Mexico after losing a case; and the pending MTBE case in California where the claim is for $970 million against the US.

Click here to order http://www.cwa-union.org/international/ftaa/bill_moyers_order.asp

Talking Trade Order

Free copies of our publication: CWA Talking Trade, Taking a Stand for Justice may be ordered on our website: http://www.cwa-union.org/international/ftaa

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