FTAs

Central America: refugee 'crisis' plan gets a debut

The Inter-American Development Bank (IADB) hosted a special event on Nov. 14 in Washington, DC to present a plan that El Salvador, Guatemala and Honduras—Central America's "Northern Triangle"—are proposing as a response to the spike earlier this year in immigration to the US by minors from their countries. The "Plan of the Alliance for Prosperity in the Northern Triangle: A Road Map" was originally released in September and is similar to programs announced at a July summit in Washington. However, the IADB event, with US vice president Joseph Biden and the three Central American presidents in attendance, "was the real 'coming out' party for the proposals," the DC-based Center for Economic and Policy Research (CEPR) wrote in its "Americas Blog."

Latin America: GAO reports on FTA labor violations

On Nov. 13 the US Government Accountability Office (GAO), an agency that investigates federal spending for Congress, released a report on the US government's handling of labor violations in countries with which it has "free trade" agreements (FTAs). Recent FTAs, such as the 2004 Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), have requirements for participating countries to meet certain standards in labor practices. The GAO claimed to find progress in this area in the partner countries—but also "persistent challenges to labor rights, such as limited enforcement capacity, the use of subcontracting to avoid direct employment, and, in Colombia and Guatemala, violence against union leaders."

Protest Ollanta Humala in New York City

On Thursday Sept. 25, Peru's President Ollanta Humala will be honored at a $500-per-plate dinner by the free-trade-boosting Americas Society "in recognition of his extraordinary accomplishments as president of the Andean country." Sponsors of the event include mineral and oil giants Barrick Gold, Freeport-McMoRan and Pluspetrol. The event comes amid ongoing deadly attacks on indigenous leaders defending their traditional lands in Peru. Local New York activists will be protesting the event with the following demands:

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.

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