 Washington Fair Trade Coalition Working on behalf of people and the planet for a fair global trading system |
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News & Events >> Fair Trade News September 2007 | ||||
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Fair Trade News September 2007 Newsletter of the Washington Fair Trade Coalition In this issue:
Product safety and trade connection Trade issues were prominent in the news last month due to the fact that many imported goods – especially Chinese products such as children’s toys and toothpaste – have been recalled in the US due to safety concerns. Many people have been justifiably concerned, since most of us assume that the products that our government admits into this country are safe for adults, children, our pets and our environment. This issue is very important beyond the obvious health and safety concerns. It is part of wider problems related to the current world trade system and the deregulation that often occurs. The concern is with the “race to the bottom” in which corporations try to cut corners or offshore production in the cheapest places. Deregulation can then occur, meaning either that problems are overlooked in distant locations, or that production standards (ie health and environmental standards, or workers’ rights and wages) are lowered to keep costs down. For numerous reasons, important checks are not being made – and this can affect our health and safety among other things. The Washington Fair Trade Coalition will be working on a campaign soon to alert people to the linked concerns about health and safety in imported goods, and the wider connections to problems in the world trade system. Stay tuned for interesting events and media outreach on these issues!
Unionists fired and minimum wage slashed in CAFTA countries Proponents of CAFTA declared that it would bring benefits to workers in Central America and the Dominican Republic. Now, workers in Honduras are seeing these promises fall apart, as circumstances are in fact getting worse since CAFTA was implemented. At Alcoa in Honduras union-busting has led recently to more than 50 workers being fired. Management dealt with attempts to organize for safer, cleaner and less exploitative conditions by dismissing everyone involved – and threatening to move production to Nicaragua, where labor is cheaper and workers less “demanding.” The minimum wage in Honduras has also been slashed recently, from 74 to 57 cents per hour. This 24% reduction is considered to be well below a living wage for the country. Both this event, and the outrageous treatment of Alcoa unionists, demonstrate precisely what CAFTA opponents were afraid of – that the agreement will not help Central Americans, but will instead lead to worsened working conditions, and a race to the bottom. Similar practices are permitted in the pending FTAs with Peru, Panama, Colombia, and South Korea – meaning that similar effects may occur in these countries if the agreements are passed. For more information on this case, see the National Labor Council’s article.
2007 Farm Bill – more of the same old problems A new and troubling version of the US’s problematic Farm Bill was recently approved by House, and will soon be considered by the Senate. The bill does include some positive measures, such as increased food stamp benefits for low-income people and better land conservation programs. However, high levels of poorly-focused subsidies for US farmers mean that the US agricultural sector is still likely to continue operating in an unbalanced and unsustainable way. The benefits remain where they were before, namely directed mostly toward large-scale agribusinesses. This has two key effects:
For an in-depth look at the provisions included in the bill, see the Congressional Research Service report. And for some ideas about what real reform of our Farm policy would look like, see: http://www.agobservatory.org/issue_farmbill2007.cfm
US Food Aid – more harmful than helpful Linked to the US farm bill problems is another concern about the way in which the US gives aid to developing countries. Much of this is given as food aid – this means that the US government buys surplus agricultural products from American farmers (mostly agribusiness), ships it overseas, and gives it to international aid agencies, which can then sell it locally and finance their development programs. However, this kind of aid is increasingly being criticized for being more harmful than helpful in the long run. While it helps aid agencies finance their work, and brings more food into sometimes hungry areas, it often upsets local agricultural markets and harms local producers. That is because the US’s subsidized food is usually cheaper than local food, so people buy this, and local growers are often forced out of business. Who are the big winners in this system? Usually US agribusinesses. While some aid agencies support this system, others claim it is both inefficient, and not helping countries to be able to produce for and feed themselves – not to mention being able to trade with others and make a profit. We are told it is better to teach a person to fish than to just fish for them. The US government should stop putting the interests of US agribusinesses over the needs of the hungry.
Fair Trade Articles for your Members Many WFTC Board members have requested that we provide short articles on trade that can be distributed to your members. Thus, we have created a three-part series of short articles on recent trade news, entitled “There is progress but it’s not enough.” The first of these will be emailed to Board members soon – keep a look out!
For further reading: Check out another great article on trade by Stan Sorscher, published in the Puget Sound Business Journal: “Trade Policy Must Balance Business and Social Goals” (links to our website, where you can access a scanned version of the article) What’s in store for pending FTAs? See “Free Trade Deals Face Rocky Path" “Toys Recalled Over Safety Fears”, BBC article on China recalls. “Mass Firing of ALCOA Auto Parts Workers in Honduras to Block Union Organizing Drive” by the National Labor Council. Congressional Research Service report on the 2007 Farm Bill, with comparisons to previous bill. To learn why CARE, a major international aid agency, is no longer willing to accept US food aid, see “US Food Aid is ‘Wrecking’ Africa, Claims Charity.” “US Angered As Panama Elects Wanted Man” reported by the Financial Times.
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