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Monday 13 August 2007

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TLC – Is It Right For Costa Rica?
by Dennis Kaiser*

The TLC, (CAFTA), has brought out a great deal of propaganda as to how it will be great for Costa Rica and all Ticos. The lastest international corporation to campaign here is General Electric – GE. Recently Lloyd Trotter, Vice President of GE made a “campaign tour” to sell the TLC. Also on this propaganda mission were President Oscar Arias, Roberto Dobles, ministro de Ambiente, and the ministro de Comercio Exterior, Marco Vinicio Ruiz.

Trotter pointed out that with the approval of the TLC – free trade agreement with the United States, Costa Rica will become more competitive. He did not go into how that would be, however, left it more like a veiled threat against not approving.

Ministro Ruiz explained the benefits to the local economy of the investments by companies like GE as he stated that the fact GE is there is a demonstration that foreign companies are evaluating Costa Rica for increased investment.

Ruiz added that approval of the TLC will also see increased export to the US by the large foreign companies of products manufactured in Costa Rica.

At present there is nothing that says GE or any other corporation couldn't enter Costa Rica. They could still provide the same to Costa Rica as well as selling their products in the United States and elsewhere around the globe. They do not need the TLC in order to do that. They do not, however, want to operate under Costa Rican laws, but, rather, the laws they have set within the TLC agreement.

The US Ambassador to Costa Rica, Mark Langdale, a long-time promoter of George W Bush has been touring the country on a propaganda mission. In fact, he has recently been charged with meddling as his efforts to distort have become magnified. In a recent speech he referred to the laws of CAFTA and those being a primary reason it should be approved. He stated, “And a final example is the strengthening of the rule of law. And in this category i would include the ratification and implementation of CAFTA because CAFTA is more that the reduction of tariffs and other trade barriers between the U.S. market and the Costa Rican market. It is an entire set of commonly applied rules and regulations on how trade and investment will be conducted and treated in the entire region among and between all 7 participating countries.”

It must be mentioned these rules of law are completely out of the control of the Costa Rican government and its people. Should there be a 'misunderstanding' between Costa Rica and an International corporation the ruling will come from a World Bank appointed tribunal. Gautemala is already going through the tribunal system involving the Railroad Development Corporation, a company that has been in Guatemala for ten years. They are now suing the country $65,000,000.00 using the rules of law established in the CAFTA agreement. The attorney for the railroad company is an attorney who negotiated the CAFTA agreement with Guatemala and the other Latin American countries.

As Mr. Trotter mentioned GE would be interested in investing in Costa Rica if they agree to the TLC agreement. One must ask, “Why would you not invest in Costa Rica without the TLC?” We have the same educated workforce, we have the same climate, and you would have the same worldwide market. The only thing that would be different is under the TLC agreement they would function under their set of rules of law, not the rules of law established by the Costa Rican government.

It might be said that the TLC agreement, with laws established by corporations and enforced by corporations is not a democracy, but, rather, a fascist government.

The propaganda of the TLC is that jobs will be created. However, what is not mentioned is how those workers will be treated. The NAFTA experience is an important lesson for the TLC or any other trade agreement in the future. Human Rights Watch has a 64-page report, “Trading Away Rights: The Unfulfilled Promise of NAFTA's Labor Side Agreement.” This report analyzes 23 complaints filed under the accord since 1994. the complaints allege systematic workers' rights violations in all three countries – fourteen in Mexico, seven in the United States, and two in Canada. General Electric, along with Honeywell, Sony, General Motors, McDonald's, Sprint, and others have been named as violators.

The North American Agreement on Labor Cooperation (NAALC), NAFTA's labor provisions, includes eleven labor principles including freedom of association, discrimination, and minimum wage. The accord also requires the signatories to have high labor standards and provide access to fair labor tribunals.

Complaints filed under the NAALC have cited favoritism toward employer-controlled unions; firings for workers organizing efforts; denial of collective bargaining rights; forced pregnancy testing; mistreatment of migrant workers; life-threatening health and safety conditions; and other violations of the eleven labor principles.

Human Rights Watch saiu that not one of the 23 complaints filed under NAALC had so far resulted in sanctions against the corporate violator. Remember, tribunals are composed of World Bank appointees. The World Bank does not deal with individual workers, but rather corporations and nations.

As Mr. Langdale the rule of law that the TLC agreement would bring is important. The NAALC rules lack standards for accepting or rejecting cases, for following up on issues raised by petitioners, or for deciding what constitutes an appropriate government response to violations.

Remember, if something is “right” for you it doesn't need to be “sold” to you. It is like in the United States when George W Bush and his cronies “sold” illegally invading Iraq. If it was the right thing to do they would not have had to tell 27 lies in their selling of it.

The same is true with the TLC, or CAFTA as it is better known. If international corporations wanted to invest in Costa Rica they would, under Costa Rican laws, instead they want to operate under their own laws, divorced from those of the country.


* Dennis Kaiser is a resident of Puerto Jimenez, Costa Rica and New Vienna, Ohio.
 

 
 
 

 

 

 

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