In depth I  Free Trade Agreements - FTAs
NAFTA and the elephant in the room
Source: Americas Program - Center for International Policy (CIP)
When negotiations on the free trade agreement with Mexico began in 1991, we had little idea of how a North American Free Trade Agreement would affect the country. But Canada had already been through it all. The U.S.-Mexico agreement sought to extend many of the terms of the 1989 U.S.-Canada agreement and patch them into a regional agreement. June 2008.[see more]
 
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Within the last decade and a half, the processes of economic privatization, globalization and deregulation have been imposed through different mechanisms. The World Trade Organization (WTO) has been the most important instrument to carry out these policies.

However, civil society and most governments from developing countries consider the WTO to be ‘one of the least transparent organizations’, which excludes less developed countries from its negotiations in order to favor the interests of wealthy countries. On account of these reasons, the WTO is one of the organizations whose work is more closely monitored by non-governmental organizations. At the same time, its ministerial meetings - the organization’s highest decision-making body – have been turned into events for mass protest by civil society movements.


Accelerating processes

Since 1995, when the US considered that the WTO negotiations were not being completed as rapidly as expected, negotiations started being promoted to form regional free trade areas. The first of these negotiations that managed to come to light was the Free Trade Area of the Americas (FTAA) in 1994. The IMF and World Bank guidelines to develop economic programs in Latin America during the 1990s, have been setting the path to put the FTAA into motion. Although the US is an important market for Latin American exports, the problem lies in the surrender of sovereignty over the management of internal economic policy that is demanded in exchange.

A few weeks after the failure of the WTO meeting in Cancun in 2003, the ministerial meeting that negotiated the FTAA was held in Miami. Once again, civil society and demonstrations played an important role: protests were staged again, the maneuvering room was restricted and Brazil in particular defended conditions for its industry and agriculture, thus making agreement impossible.

The United States, in the meantime, moves gradually forward by means of bilateral or reduced regional free trade agreements . It has already signed agreements with Mexico and Chile, and is speeding up negotiations for the Central American Free Trade Agreement (CAFTA). In this way, parallel agreements are being implemented with the same format and characteristics of a FTAA that serves Washington’s interests. Along these lines, we will end up with a network of agreements covering all Central America and several Andean countries. At the same time, it tries to develop regional negotiations in Africa and Asia. The disease of the day would be ‘Acute treatyitis’, according to the title of a document published by the Grain organization that we offer in this report.

‘Our planet is wrapped in a thick weft of international, regional and bilateral economic and financial agreements and treaties that have subordinated or taken the place of the basic tools of international and national human rights law (including the right to a safe environment), national Constitutions, economic legislation directed to national development and labor and social laws that tend to alleviate inequalities and exclusion’. (1)

A very clear example of these statements is the use of FTAs by the US to impose intellectual property standards, which favor the short-term commercial interests of US pharmaceutical companies, at the expense of public health in developing countries. The Oxfam organization compares five US treaties: NAFTA, Chile, Singapore, CAFTA and FTAA, which are unnecessarily stringent on developing countries and go beyond the already damaging requirements of the World Trade Organization (WTO). (2)

Given the large number of negotiation processes that are underway, it is difficult today to follow all of them, particularly taking into consideration that they are generally carried out secretly. However, by acknowledging the already completed agreements it becomes possible to analyze their real goals and contents.

These treaties not only address economic matters but also have an explicit political content whereby developing countries are put in a situation of subordination. Several examples are given in different sections of this report. In the US-Morocco treaty, the United States expresses interest in ‘promoting more tolerant, open and prosperous Islamic societies’. Other treaties (such as the one with Thailand) are explicitly presented as a means to strengthen military ties and cooperation in the ‘war on terrorism’ (3)

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(1) "Human rights and bilateral treaties". Bilateral treaties on free trade and promotion and protection of investments: “arms of massive destruction” to national and international public law and human rights law. Joint statement submitted by the Europe Center – Third World, non-governmental organization with general consultative status and the American Association of Jurists. Commission on Human Rights, 56th period of sessions – July 26 to August 13, 2004. See full text . (Pdf format)

(2) "Undermining access to medicines: comparison of five US FTAs". June 2004, Oxfam. See full text . (Pdf format)

(3) Recent FTAs negotiated by the US include: US-Chile (2003), US-Jordan (2000), US–Morocco (2004), US-Singapore (2003), and the Central America Free Trade Agreement (CAFTA–2004) that includes the Dominican Republic. The US is also negotiating numerous FTAs with other developing countries, including the Free Trade Area of the Americas (FTAA deadline 2005), Andean countries, Thailand, Panama, Bahrain and Southern African countries, with others remaining under consideration.

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