FTAA info (fyi)

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From: "cis" <cis@netcomsa.com>
Organization: cis
Date: Mon, 16 Apr 2001 16:49:47 -0500
To: "(todosdelcis)" <cis@netcomsa.com>
Subject: Special FTAA Urgent Action Alert

SPECIAL ACTION ALERT
 
THE FREE TRADE AREA OF THE AMERICAS
 
Centro de Intercambio y Solidaridad, CIS
April 16, 2001 

The Free Trade Area of the Americas (FTAA) is a free trade agreement similar
to NAFTA that "will extend from Alaska to Argentina".  The FTAA is the most
recent and far reaching in a series of free trade agreements (including GATT
and NAFTA). The FTAA  is the outcome of these previous efforts and it plans
to place all of the Americas under the domination of large private capital
(overwhelmingly U.S.).  The FTAA was started at the initiative of ex-US
President Clinton in 1994 at the 1st Summit of the Americas in Miami.  It is
suspected that the FTAA will include elements of the defeated MAI
(Multilateral Agreement on Investment).  The FTAA will be negotiated and
finalized in the III Summit of the Americas in Quebec between April 20 and
22. The agreement will be catastrophic for small economies/countries such as
El Salvador. 

Elements of the Agreement11 This section is adapted from Free Trade Area of
the Americas: Demystifying the Corporate Jargon by Cathleen Sullivan.  All
quotations in this section are taken from the above stated document.:

Barriers to Trade 

"The FTAA intends to gradually eliminate tariff and non-tariff barriers that
restrict or regulate the flow of trade between countries to make all markets
more 'accessible' to foreign goods and investment."


National Treatment 

Under the FTAA it would be illegal for governments to "discriminate" against
large foreign companies by favoring local business. As a result, the large
multinational corporations will have an unprecedented advantage at setting
up monopolies in smaller poorer countries

Claiming It All 

This was an aspect of MAI that is believed will be part of the FTAA.  This
element of the agreement expands the definition of investment so that
anything that can be given a monetary value could be bought on the "free
market."  Such things could include oil reserves, a country's forests or
water, healthcare administration etc.

Deregulation of Capital Controls

Over 90% of the daily global financial transactions are speculative in
nature. They are short term investments that make money from money.  They
are not productive long term investments.  Uncontrolled capital flying
around the world leaves countries in ruins.22 For an excellent analysis of
this and other aspects of the Global Economy and their effects see "Panic
Rules" by Hanhel 

Privatization 

The FTAA will further promote the privatization of school systems, water,
health care, prisons, etc.  When private corporations take over things such
as schools or prisons their incentive is not to serve but rather profits are
the necessity. "Furthermore, once privatized, these services are made
available to international investors who have no accountability to the
population they are serving, but are principally accountable to their
foreign stockholders." History has shown us that the above is true;
privatization can be equated with mass firings, low wages, union busting, no
benefits, and unsafe and inhumane working conditions.

Regulatory Takings 

Regulatory takings means that governments need to compensate a company for a
"taking".  For example, a government has to pay a company for relocation if
they decide to take the land to build a road or a public building.  However,
the FTAA intends to broaden the scope on when compensation applies.  A
corporation could "demand" compensation for any type of government action
that would limit the value of an investment or cut into present or future
profit.  As a result, a corporation could demand a government if laws and
regulations on pollution, land use, consumer protection etc. decrease their
actual or potential profit.

Intellectual Property Rights

In the past governments sometimes restricted patent protections in certain
cases.  For example, a patent right might be limited on a medicine so that
it can be readily available and affordable to the public.  Under the FTAA
limiting patent protections would not be tolerated.   In addition, biopiracy
is established under the FTAA.   Large foreign corporations could patent
seeds, indigenous medicines, genes, and other natural products used and
developed by local populations.  Biopiracy threatens the economic and
cultural existence of many peoples.  Third world countries would become even
more controlled by foreign companies, they would lose their resources and
have limited access to medicine.



Genetically Modified Organisms

The U.S. government wants to expand the market for genetically modified
organisms (GMOs).  The FTAA is likely to seek the elimination of regulation
and control of GMOs.  Concern for safety has been left on the back burner as
immediate profit is the primary motive behind the talks regarding GMOs.
Since safety is not the primary concern, environmental disaster could ensue
after the unrestricted use of GMOs.  Forcing countries under the domination
of agribusiness will have an especially negative impact on the Global South.
Small, poor farmers will be forced to use expensive, patented, genetically
engineered seeds which need to be bought every year.  This would replace the
traditional farming practice and way of life.

Performance Requirements

"The FTAA is expected to limit the ability of governments to put conditions
or performance requirements on foreign investments. Historically, many
countries have had laws restricting the percentage of a business that can be
owned by a foreign corporation or requiring that some percentage of the
profit be reinvested in the host country… These, along with environmental
protections like regulating logging or mining techniques, are all crucial to
the development, protection and stability of local economies."

Investor-To-State Dispute Resolution

The Investor-To-State Resolution was a feature of NAFTA and MAI and it is
almost a certainty for the FTAA.  This resolution gives corporations power
of national, state, and local laws. Under the Investor-To-State resolution,
a corporation can directly sue a government if one of their national, state,
or local laws is seen by the corporation as a threat to the company's
profits or reputation.

What Has History Taught Us: A Quick Look At NAFTA

Contrary to mainstream praise for NAFTA (the North American Free Trade
Agreement) a quick look at its supposed success gives us another picture.
Instead of raising living conditions and stabilizing the Mexican economy,
NAFTA has done just the opposite; it has destabilized the Mexican economy,
created more inequality, it has had a net negative impact on employment and
has driven salaries down both in Mexico and the United States.

For example: 

During the last 18 years salaries in Mexico have depressed by more than 20%
Due to the neo-liberal style of "trade" Mexico has lost $3 billion dollars
of public income each year.
In the maquila sector, 97% of the each exported article comes from the
exterior. 
80% of all Mexican exports are carried out by only 300 large businesses.
Due to the structural adjustment program agreed to in the NAFTA, the
financial system of Mexico has come under foreign domination - 50% is owned
by foreign banks. 
From the five years before NAFTA to the five years after NAFTA there has
been almost a 50% decline in production.33 The above statistics in this
section were taken from "Tratado de Libre Comerico de America del Norte:
Tiro por la culata - una evaluación a 6 años de haber entrado en vigencia"
by Andrés Peñaloza. Published in Libre Comericio: promesas versus
realidades, Compilador: Beat Schmid.

In addition: 

5-6 million jobs in the US have been lost due to NAFTA. Companies relocate
to Mexico to take advantage of lower wages and lower labor standards.
The number of Mexicans living in poverty has risen from 47% to 51% since the
beginning of NAFTA.  The number of Mexicans living in severe poverty has
increased by 4 million.
The number of small farmers in the U.S. has fallen 9% and the number of U.S.
farm households at or near the poverty line has climbed to 93%.
Mexican manufacturing wages have fallen 9.5% since the beginning of NAFTA.
Between 1994 and 2000 the purchasing power of the bottom 80% (in Mexico)
dropped 39%. 
Mexico's total debt was almost $20 million higher in 1998 than it was in
1994.44 The above statistics in this section were taken from "Free Trade
Area of the Americas: Demystifying the Corporate Jargon."

Secrecy 

The drafting of the text and the negotiating process has been highly
exclusive and carried out in secret.  For example, the final version of the
text is not known because it has been negotiated in secret.  In addition, no
non-governmental organization has been permitted to participate in the
drafting of the text. Furthermore, the Canadian authorities are not letting
protesters cross into Canada to demonstrate.  There have even been reports
that a 12 foot wall will be constructed around the meeting site, protecting
the global elite from the upset populous. If these agreements are so
wonderful, beneficial to the population, truly participatory and democratic,
why all the secrecy? why all the protection? why the exclusion? why all the
militarism to squash anybody proposing to participate or suggest a change?

Alternatives 

The National Foundation for Development (FUNDE) took part in the People's
Summit which coincided with the official II Summit of the Americas in
Santiago, Chile 1998.  Numerous organizations, independent institutions, and
other citizen groups met at the People's Summit to develop a people's trade
document entitled "Alternatives for the Americas".  The four guiding
principles of their proposal are: 1) Democracy and Participation 2)
Sovereignty and Social Welfare 3) Reduce inequalities 4) Sustainability.
The document is much too long and developed to go into detail here.
However, the entire document can be viewed at
www.web.net/~comfront/alts4americas/

Conclusion 

The United States has almost 80% of the Gross Domestic Product of the
hemisphere.55 La Prensa Grafica, Monday, April 16, 2001. Pg. 44. Let us make
no mistake, in the words of SOA Watch, "The United States' main goal in the
FTAA process is to secure economic and political hegemony over the Western
Hemisphere." One can view the FTAA as a goal of the years of U.S. military
intervention in the region. Through the military, the U.S. elite was setting
up all the pieces of their vision.  Anyone who stood in the way i.e. was not
cooperative, was ousted and an "acceptable" government were established.  It
is symbolic that Cuba is the only country not part of the FTAA.  Militarism
is an essential part of the neo-liberal plan; the military is needed to
squash the hungry people and open new markets.  The process will not end
with the FTAA. The FTAA is the next "legal" phase of continuing and
enhancing the expropriation of foreign and/or national resources, markets,
and labor at the hands of big, private capital.

What You Can Do:** A sample letter follows.

Fax President Francisco Flores urging him to demand that the Salvadoran
representative, the Minister of Economy, Miguel Lacayo, take into account
the position and proposal developed at the People's Summit.
Fax: 011-503-281-0018

Call or fax the Minister of Economy, Miguel Lacayo, making the same demand.
Tel/Fax 011-503-221-4765 or 011-503-221-4768.

Call or fax the Inter-American Development Bank in El Salvador, Luis A.
Vergara.  Telephone: 011-503-263-8300 Fax: 011-503-263-7015.

Call, fax, or email U.S. President Bush, your congress person, and your
senator expressing your concerns and making similar demands.

Get involved in your community and/or go to a demonstration or activity.
There are a number of activities and demonstrations going on around the
world. A couple good websites to get connected are: www.a20.org ,
www.quebec2001.net, or www.quebec.indymedia.org

Dear --------------------,

I would like to express my concern about a very important issue: the Free
Trade Area of the Americas.  I am worried that the governments of El
Salvador and that of the United States are promoting a corporate
globalization based on immediate profit and not public well being.  For
example, we have seen the negative effects of NAFTA and since the
implementation of a global neo-liberal agenda social problems such as
poverty, hunger, unemployment, militarism and lack of basic services (which
are supposed to be guaranteed under international human rights law) have
been exacerbated. 

Current defined trends incorporated in the various elements of the FTAA,
such as national treatment, broader definition of investment, deregulation
of capital controls, privatization, elimination of performance requirements,
investor to state dispute resolution, use of intellectual property rights
for biopiracy, and deregulating the use of genetically modified organisms
will only continue to impoverish the majority of the earth's population
while destroying the environment and deepening the global economic crisis.

The unfair terms of trade established by the so called "free market" will
only continue to increase the inequalities within and among nations.

In addition to the unjust nature of the agreement's content, I am fully
aware of and upset by the secrecy and exclusive nature of the agreement's
development and negotiation.  Despite politically correct rhetoric, the
development and negotiation of the global economic policies are still
carried out by and for the world's economic elite.

In the name of peace and justice I strongly urge you to geniuenly listen to
the People's Summit position and proposal - which FUNDE of El Salvador
helped create.  Their proposal is well developed, representative of the
needs of the majority of the hemisphere's population, and much too
comprehensive for me to include in this letter.  I urge you to not only take
into consideration their position, but also to implement what they are
proposing. 



Estimado_______________________________ __

Quisiera expresarle mi preocupación sobre un tema de mucho interés: el Area
de Libre Comercio de las Américas. Me preocupa el hecho de que los gobiernos
de El Salvador y de los Estados Unidos están promoviendo una globalización
de las grandes empresas basada en la ganancia inmediata, y no en el
bienestar de las personas. Por ejemplo, hemos visto los efectos negativos de
NAFTA, y desde la implementación de una agenda global neoliberal los
problemas sociales como la pobreza, hambre, desempleo, militarismo y falta
de los servicios básicos (que se supone deben estar garantizados bajo leyes
internacionales de derechos humanos) han aumentado desmedidamente.

Las orientaciones actuales definidas e incorporadas en los diferentes
elementos del ALCA, tales como el tratamiento nacional, una definición más
amplia de la inversión, desregulación de los controles de capital,
privatización, eliminación de requisitos de ejecución, resolución de la
disputa entre inversionistas y el Estado, uso de los derechos de propiedad
intelectual para la biopiratería, y la desregulación del uso de organismos
genéticamente modificados, no harán más que empobrecer a la mayoría de la
población mundial, mientras destruyen el medio ambiente y profundizan la
crisis económica mundial.

Los injustos términos de comercio establecidos por el llamado "libre
mercado" sólo continuarán incrementando las desigualdades dentro de y entre
las naciones. 

Además de estar convencido de lo injusto del contenido del acuerdo, estoy
completamente consciente y molesto por el secreto y por la naturaleza
exclusiva del desarrollo y negociación del acuerdo. A pesar de la retórica
de lo políticamente correcto, el desarrollo y negociación de las políticas
económicas mundiales todavía son realizadas por y para la élite económica
mundial. 

En nombre de la paz y de la justicia, lo insto vigorosamente a que escuche
de verdad la posición y la propuesta de la Cumbre de los Pueblos -que fue
creada con ayuda de FUNDE de El Salvador-. Su propuesta está muy bien
desarrollada, representa las necesidades de la mayoría de la población del
hemisferio, pero es demasiado extensa como para incluirla en esta carta. No
sólo le pido que tome en cuanta su posición sino que implemente lo que ellos
están proponiendo.