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International:
Central America Free Trade Agreement

Our Position: oppose
Bill Number: HR3045
Sponsor: Tom DeLay (R-TX)
Legislative Session: 2005

The Central America Free Trade Agreement is a flawed model that expands the privileges of global corporations at the expense of working families and the environment.  CAFTA's environmental provisions are weak, unenforceable, full of loopholes, and a step backwards from previous trade agreements. They do not mandate any improvement of environmental standards in Central America, and even the United States Trade Representative has agreed that countries like Guatemala and Honduras lack even basic environmental protections.

Status

In a late night vote on July 27, the House narrowly voted by a margin of 217-215 to send the Central America Free Trade Agreement (CAFTA) to the president for his signature. Although the early vote count would have rejected the controversial bill, the presiding chair held the vote open for an extra 45 minutes to encourage vote changes and finally secure a victory.

Background

CAFTA follows the failed path of NAFTA and allows multinational corporations to challenge environmental and public health measures in secret trade tribunals if they are perceived to interfere with profits. Under NAFTA, Mexico was forced to pay almost $16 million to a U.S. corporation after a community blocked the building of a toxic waste facility that would have threatened local drinking water supplies. Additionally, a Canadian mining company recently sued the U.S. for $50 million over the cleanup and restoration requirements of an open-pit mine in California.