FTAs

Guatemala: activists defeat 'Monsanto Law'

Guatemala's unicameral Congress voted 117-111 on Sept. 4 to repeal Decree 19-2014, the Law for Protection of Procurement of Plants, in response to a lawsuit and mass protests by campesinos and environmentalists. The law, which was to take full effect on Sept. 26, provided for granting patents of 25 years for new plants, including hybrid and genetically modified (GM) varieties; unauthorized use of the plants or seeds could result in one to four years in prison and a fine of $130 to $1,300. The law had already been weakened by the Court of Constitutionality; acting on an Aug. 25 legal challenge from the Guatemalan Union, Indigenous and Campesino Movement (MSICG), the court suspended the law's Articles 46 and 55. The law was originally passed to comply with an intellectual property requirement in the 2004 Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), and it was unclear whether Guatemala might now be excluded from the US-promoted trade bloc.

Mexico: wages stay down in stalled economy

Even as Mexican president Enrique Peña Nieto continues to push for economic "reforms," government agencies report that the economy still has one of the worst records in the hemisphere. Gross domestic product (GDP) grew just 1.1% in 2013, the poorest result in four years, and the government has reduced its forecast for growth in 2014 to 2.7%. The Banco de México, the country's central bank, cut its key interest rate this June to stimulate economic activity, warning that the growth outlook was "weaker than expectations even a couple of weeks ago." Only one-half of the population works in the formal economy, and even these workers are probably earning less than their parents did. Mexico's legal minimum wage has fallen at least 66% in purchasing power over the last three decades, according to Alicia Bárcena, the executive secretary of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC, CEPAL in Spanish).

Subcommander Marcos 'ceases to exist'

A new communique from Subcommander Marcos of the Zapatista National Liberation Army (EZLN) (online at Enlace Zapatista, and in translation at Roar Magazine) states that he is stepping down as the public voice of the indigenous Maya rebel army in Mexico's Chiapas state. It says he is to be replaced by a "Subcommander Galeano," named for the nom de guerre of José Luis Solís López, the Zapatista adherent killed on May 2 in a confrontation with a rival campesino group. "I declare that the one known as Insurgent Subcommander Marcos ceases to exist," the statement reads. "The Zapatista National Liberation Army will no longer speak through my voice." The text cites changes in the rebel movement since it announced its existence to the world in a brief armed uprising launched on New Years Day 1994, the exact moment that NAFTA took effect:

Rival trade pacts vie for Pacific hegemony

In a move being openly portrayed as part of a race with the US-backed Trans-Pacific Partnership (TPP) for hegemony in the Asia-Pacific region, China has set up a working group to study the feasibility of a Free Trade Area of the Asia Pacific (FTAAP). The proposal comes ahead of a meeting in May of trade ministers from the Asia Pacific Economic Cooperation (APEC) forum, which China will host. Wang Shouwen, an assistant commerce minister, assured: "We think there will be no conflict between the FTAAP and the region's other FTAs under discussion." But reports note that the news comes just as progress of the TPP has snagged over Japanese insistence on protecting its agricultural and automotive sectors. Chinese President Xi Jinping in October said at the APEC business forum in Indonesia that Beijing will "commit itself to building a trans-Pacific regional cooperation framework that benefits all parties"—an obvious veiled criticism of the TPP. (Tax News, May 5; AFP, April 30)

May Day mining disaster in Colombia

An unknown number of miners—perhaps as many as 40—were buried alive as an illegal gold mine collapsed late on the night of April 30 at El Palmar, in Colombia's southern department of Cauca. Local campesinos spent May Day volunteering with Santander de Quilichao municipal brigades in a desperate effort to unearth the victims—none of whom are believed to survive. Thus far, only three bodies have been recovered, according to local Red Cross workers. Local residents said the "owners" of the mine were able to escape, but it is still unlcear exactly who they are.

Taiwan gets a Maidan movement?

Hundreds of students remain barricaded in Taiwan's Legislature in protest of the ruling party's push for a Cross-Strait Trade in Services Agreement with the People's Republic of China. Protesters, most of them college students, stormed into the assembly hall of the Legislative Yuan, breaking the glass doors and blocking the entrances by piling up lawmakers' chairs to prevent police from entering. The protesters also took over the podium and rostrum in the chamber. The action was prompted March 18 when the ruling Kuomintang (KMT) cut short review of the trade agreement and sent the pact directly to the plenary session for its second reading. In response, the Democratic Progressive Party (DPP) and the pro-independence Taiwan Solidarity Union (TSU) boycotted the plenary session. Student leader Fei-fan Lin, speaking at a press conference, said: "We want the agreement to be recinded—not just back to the committee, but we want it thrown out, and tell China we are not signing this." (China Post, March 20; Taipei Times, CNN, VOA, March 19; Ketagalan Media, March 18)

Ukraine issues arrest warrant for ousted president

Ukraine's acting interior minister Arsen Avakhov on Feb. 24 said on his official Facebook page that an arrest warrant has been issued for the country's fugitive president, Viktor Yanukovich, for the mass killings of civilian anti-government protestors. In his statement, Avakhov said that an official case had been opened for the mass murder of peaceful citizens and that Yanukovich and other officials had been declared wanted, going on to say that Yanukovich was last seen in the Crimean peninsula before dismissing much of his security detail and going to an unknown location. Russian Prime Minister Dmitry Medvedev expressed doubts about the legitimacy of Ukraine's new leaders and accused them of coming to power as a result of armed mutiny. A vast majority of Ukraine's elected parliament voted for the new government, including members of Yanukovich's party, and acting President Oleksandr Turchinov has said that a new coalition government may be formed later this week.

Mexico: US planned bailout before NAFTA vote

According to a Feb. 8 article in the online magazine Salon, officials of the Federal Reserve, the de facto central bank of the US, were planning to arrange for a bailout of the Mexican peso in November 1993 to ensure that the North American Free Trade Agreement (NAFTA) would be ratified by the House of Representatives. While the US media and government officials—including Federal Reserve Board of Governors member Jon LaWare—were assuring Congress and the public of Mexico's financial stability, top Reserve officials were concerned that the peso might be facing a devaluation. In a Nov. 9 conference call that one official described as "of a sensitive international nature," Fed leaders discussed arranging a US-sponsored bailout if the currency failed.

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