Washington, August 3 (RHC)-- U.S. President George W. Bush signed a free trade agreement with six Central American countries on Tuesday, while critics both in the United States and abroad continued to denounce the accord. Speaking with reporters covering the signing ceremony at the White House, Bush claimed that the CAFTA agreement "is vital to America's economic and national security interests."
The White House ceremony capped a long-fought battle on Capitol Hill, where the president personally jumped in to make promises to congressional representatives in order to get their votes. The legislation, first approved over one year ago, passed the House of Representatives by just a two-vote margin -- 217 to 215.
The agreement -- with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic -- eliminates tariffs and opens up the region to U.S. goods and services. Opponents say that the accord exploits the poverty in the region and closes down U.S. jobs. They also point out that the labor rights provisions in CAFTA are too weak to protect workers in impoverished Central American countries.
Widespread popular opposition to CAFTA in Costa Rica, Nicaragua and the Dominican Republic continues to delay congressional consideration of the agreement in those countries, while strong protests accompanied the process of ratification in Guatemala, El Salvador and Honduras, where military and security forces have been called out to quell the mounting opposition.
Opponents of CAFTA say that the accord extends monopoly rights for international pharmaceutical companies, thereby limiting marketing of generic medicines, and prohibits governments from using policy tools designed to ensure that investment provides maximum benefit to local communities.
Furthermore, the accord requires that Central American countries open their markets to the dumping of US rice and other commodities and to forbid use of adequate safeguards to ensure food and livelihood security and rural development. CAFTA also blatantly ignores the fact that US agribusiness receives extensive subsidies and domestic supports, estimated to be around $24 billion this year alone, making it virtually impossible for Central American and Dominican farmers to compete.
Despite the fact that it has now been officially signed by the U.S. president, many believe that the actual implementation of CAFTA will be extremely difficult and will continue to meet with strong popular protests throughout the region.
