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The FTAA and Labor Issues

Analyzing the "Public Summary of U.S. Position"
by Josh Noiseux

In order to understand the true nature of the upcoming Free Trade Area of the Americas negotiations in Quebec City it is useful to comprehend some of the subtleties of the rhetoric of the interested parties. The USA is one the most influential powers involved in the FTAA process. Its Trade Relations Department has issued a public summary of US FTAA policy concerning a variety of issues, including Labor and Worker Rights. The document is fraught with intentionally vague wording and does not provide any substantial information regarding US policy towards labor and the FTAA. This is due largely to the fact that the US and the FTAA are not doing anything substantial in the area protection of worker rights. With a few suggestions and clarifications, based in history and actuality, the draconian picture of labor relations that the FTAA paints becomes very clear indeed.


Here is the text of the [public summary] with my analysis in bold:


At the first Summit of the Americas in Miami in December 1994, the thirty four democratically elected [as far as the US is concerned - many dictators were "democratically elected" ] Heads of State and Government in the Western Hemisphere agreed to construct a Free Trade Area of the Americas. [They agreed, but of course they did not mention their intentions to their respective populations. This what is considered democracy, agreeing to trade pacts that will dramatically affect everyone in the hemisphere, without any public information or debate whatsoever. Any information that is coming out is at the relative last minute, and is laden with vague wording and rhetoric. Again, even this is not widely disseminated.] These leaders also agreed that as "economic integration in the Hemisphere proceeds, we will further secure the observance and promotion of worker rights, as defined by appropriate international conventions." [Observance and promotion of worker rights tends to mean in practice, talking a lot of hot air while doing everything possible to evade the labor legislation that is in place. This is obvious coming from the point of view of a corporation whose sole purpose is to make money.] as defined by appropriate international conventions." [The ones that the USA and the institutions it supports, and which corporations support, deem to be appropriate. The USA has a long tradition of NOT ratifying international labor agreements. It should also be pointed out that the US, who will play a dominant role in determining FTAA policy, often holds a double standard: calling on all countries to adhere to "international law" while breaking that law itself. (When the US was reprimanded by the International Court for abuses in Nicaragua, the superpower characteristically refused compliance.)]

At subsequent meetings of Trade Ministers and Vice Ministers, the United States proposed [my emphasis] several approaches to meet this commitment. For example, we pressed repeatedly for the establishment of a study group to address the relationship between FTAA goals and labor issues. [There is no effort to come to a conclusive arrangement to protect worker rights, there are however, a lot of proposals for "study groups"] We also proposed that Ministers of Trade review and discuss the work of the hemisphere's Labor Ministers contained in the "Report of the Working Group on Economic Integration and Its Impact on Employment and Labor Migrations of the Tenth Inter-American Conference of Ministers of Labor." [Again, what is being talked about is 100% hot air. Essentially the US efforts surrounding labor issues can be summed up as, "a proposal form a study group to discuss a proposal of a report," which was itself constructed by the generally conservative (neo-liberal), anti-union Labor Ministers of the western hemisphere.]

Many delegations have consistently opposed consideration of labor matters in the FTAA, arguing that this topic was not relevant to negotiations on trade and investment. [These, contrary to what is implied, include the US.] Opponents of the U.S. proposals assert that the International Labor Organization (ILO) is the appropriate forum to deal with core labor standards. Accordingly, the United States could not obtain the necessary consensus either to form a study group on labor or to include labor as an issue for discussion when the Ministers met in San Jose in March 1998. [So in the end even the proposal to form a study group to discuss a proposal of a report did not go through. The US, which has so often used it's massive negotiating influence to veto resolutions, or ram them through, in international bodies, is somehow powerless to continue it's valiant efforts on behalf of the working population.] However, the agreed general objectives of the FTAA as spelled out in the San Jose Declaration include two key goals:

"To promote prosperity though increased economic integration and free trade among countries of the Hemisphere, which are key factors for raising standards of living, improving the working conditions of people in the Americas and better protecting the environment." and [Completely rhetorical statement which is based entirely in the ideology of the elite interest groups promoting the FTAA, and is in no way similar to reality. In all areas where free trade style agreements have been reached the standard of living for the majority of the population has gone down (as in the case of Mexico in NAFTA.) The idea that free trade somehow intrinsically protects the environment and worker rights is absurd. Standards to do this are systematically excluded from the agreements (or as abovementioned, consensus fails to be reached) and the provisions of the agreements themselves often call for measures that do just the opposite of what this statement claims. It is no wonder that all across the Third World huge numbers of people are protesting the "integration of the economies." If it is true that the FTAA will, "promote prosperity....and....improve working conditions" it is only applicable to the uppermost strata of society, which is, fittingly, the group organizing the FTAA, and writing this document.]

"To further secure, in accordance with our respective laws and regulations, the observance and promotion of worker rights, renewing our commitment to the observance of internationally recognized core labor standards and acknowledging that the International Labor Organization is the competent body to set and deal with these standards." [Although this is included in the "agreed general objectives" of the FTAA it is unlikely to be enforced, or enforceable, in practice. As well, the ILO has often been criticized by local unions and labor federations as being extremely lax and neglectful of the demands and concerns of the rank and file. It is considered by many to be a bureaucratic and ineffective organization, distanced from the workers, and with little or no power to enforce even the moderate agreements it reaches. It is thus quite suitable to the needs of the groups pushing the FTAA. It must be stressed, though, that even the resolutions of the ILO are usually far from implementable.]

The Ministers at San Jose did agree to the establishment of the FTAA Committee of Government Representatives on the Participation of Civil Society. The San Jose Declaration created this Committee and gave it a mandate to receive inputs from civil society throughout the hemisphere to analyze them, and report to the ministers on the range of views from civil society. [This mandate was not well carried out. Due to the absolutely minimal media coverage, only a few groups knew of this mandate, and fewer still were able to give input] In the November 1999 Toronto Declaration, Ministers again requested a report on the views submitted by civil society and also reaffirmed their commitment to transparency in the negotiating process and to conducting the negotiations in such a manner as to broaden public understanding and support for the FTAA. ["To broaden," a "public understanding," which is biased towards, "support for the FTAA," seems to be the logical meaning of this vague assertion.] The Committee has issued two Open Invitations [Which most never heard about] inviting civil society to submit their views on the FTAA negotiations in writing and has prepared one report. That report states some of the submissions raised the issue of labor standards and advocated their formal inclusion in the FTAA. Similar views were submitted in response to the second Open Invitation. The United States continues to believe that the FTAA must include concrete provisions to implement the Miami commitment to further secure the observance and promotion of worker rights. We have proposed a provision for the Chapter on Investment that countries should not relax their labor laws to encourage investment. [Sounds reasonable enough, but considering the history of neo-liberal free trade, the US's commitment to upholding third world labor laws should be taken with a rather large grain of salt.] We are considering, in consultation with U.S. interested parties [corporations and business interest groups] whether additional labor-related provisions should be included in any of the individual chapters. [So the US is considering the issue by asking those sections of society which will almost certainly oppose labor-related provisions whether or not they should be included. This is presented as a good, progressive move.] We are looking forward to the next step of the negotiating process where the 34 countries will begin to address the overall architecture and institutional provisions of the FTAA agreement as an opportunity to pursue our goal of ensuring that hemispheric integration promotes the implementation and enforcement of core labor standards. [As defined by the ILO, or the US and its, "interested parties"]

Parallel Process

At the second Summit of the Americas in Santiago in April 1998, two specific labor- related action items were included in the Action Plan. The two labor action items are: a) Modernization of the State in Labor Matters; and b) Basic Rights of Workers.

Following the Santiago Summit, the XI Inter-American Conference of Ministers of Labor was held in Viñña del Mar Chile, in October 1998. The Labor Ministers adopted a Declaration and Plan of Action that serves as a blueprint for carrying out the labor goals of the hemisphere's leaders, [Almost all elected with the support of intrinsically anti-labour corporate interests, these leaders labor goals are likely to very different from the goals of labor. The US and the Labor Ministers take for granted the idea that labor having a say in the processes that affect it is ridiculous.] as embodied in the Santiago Summit Action Plan. As a result of that meeting, two Working Groups were formed, one on "Economic Globalization and Its Social and Labor Dimensions" and another on "Modernization of the State and Labor Administration." The labor ministers also created an Advisory Council including international organizations such as the Inter-American Development Bank (IDB), International Labor Organization (ILO), and Economic Commission for Latin America and the Caribbean (ECLAC), to help implement the Action Plan. [Which are more or less oblivious the concerns of the workers of the hemisphere.]

The 34 summit countries have agreed that the next Summit to be held in April 2001 in Quebec City will address three baskets of issues-Strengthening Democracy [strengthening what the elite considers to be democracy. The US government and elite, as well as the elite of most other South and Central American nations consider countries like Colombia to be strong democracies. Colombia has been condemned by Amnesty International and the UN as an extremely undemocratic society and has the worst human rights record in the hemisphere.] , Creating Prosperity [For the elite], and Realizing Human Potential [Which is understood by neo-liberal ideologues to be either making profit, or if you are not a member of the elite, maintaining your position as an obedient producer/consumer]. The basket on Creating Prosperity includes Trade, Investment and Finance, Environmental Management, Labor and two others. Under Labor an action item on Labor Dimensions of a Globalized Economy has been proposed. The United States believes we should use this opportunity to build on the work that has already been done under the Santiago Summit Plan of Action. [Remember, nothing concrete has been done.] For example, in the Summit preparation process, the United States is proposing that the Labor Ministers be instructed to prepare a further analytic report on basic worker rights and the labor dimensions of a globalized economy as well as begin a dialogue on the labor dimensions of hemispheric integration with Trade and other appropriate ministries. [Another proposal for another ineffectual "report" which will likely not occur]

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