Despite the overwhelming evidence of workers' rights being routinely abused, DR-CAFTA offers no solution. Its single enforceable workers' rights provision requires only that countries enforce their own labour laws, laws that the International Labour Organisation has documented as failing to meet international standards. DR-CAFTA contains no enforceable provision preventing countries from weakening or even eliminating some of their labour laws.
In this sense DR-CAFTA can be seen as a step backwards since under existing commercial laws the US can withdraw trade benefits from Central American and Caribbean countries not only if they do not enforce their labour laws but also if those laws do not protect workers' rights.
CAFTA does not just fail to address workers' issues. Its impact on the development prospects of the Latin American sub region is debatable. Indeed if the trade deal goes into effect, 80% of U.S. industrial goods will enter Central America and the Dominican Republic duty-free, with the remaining tariffs to be eliminated entirely after 10 years. This will largely prevent the Latin American countries from protecting their own industries from external competition and may therefore jeopardise further industrial development plans.
CAFTA also opens the door for introducing competition into Costa Rica's telecommunications and insurance markets, both of which are publicly run. A liberalisation of such markets would entail the privatisation of these services, with particularly damaging consequences for employment.
International Trade Union Confederation
marketing@alchempro.com
