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CAFTA Factsheet

Links:

Citizens Trade Campaign

Public Citizen’s Global Trade Watch

NAFTA’s Failures Expanded in Central American Trade Agreement

For the last ten years, North Americans have lived with the negative impacts of NAFTA (North American Free Trade Agreement). Despite its proven failure, the U.S. Trade Representative and the Bush Administration are now pushing for an expansion of NAFTA through another bi-lateral trade agreement, CAFTA.

CAFTA, the Central American Free Trade Agreement, is a regional agreement between the United States, five Central American countries, Costa Rica, Honduras, Nicaragua, El Salvador and Guatemala, and the Dominican Republic.

CAFTA uses the same failed models of NAFTA. The agreement text includes “investor to state provisions” which gives foreign companies the right to sue state, local and federal governments of another country if they pass laws that take away that companies ability to make a profit.

Like NAFTA, this trade agreement threatens family farmers and ranchers. It favors corporate agribusinesses that keep commodity prices low and flood local markets with cheap imports. This allows these corporations to buy their inputs at the lowest possible price, process their products with the lowest cost labor and import that food into the U.S. at the highest possible profit.


CAFTA is free trade we can't afford. PRBRC ad

Region Strongly Opposes CAFTA
Statement by Reed Kelley, Co-chair of WORC ’s Trade Team.

Narrow Senate Vote Reveals Regional Rejection of CAFTA
WORC STATEMENT


CAFTA trade agreement threatens family farmers and ranchers,rural communities,workers and sovereignty.

Investor to State Provisions: Putting Profit Before People
Read Investor to State Provisions factsheet

WORC tells Congress fair trade is good for farmers, ranchers and consumers.
Read WORC's testimony on Central American Free Trade Agreement

Action Alert: Urge Your Senators and Representatives to Oppose CAFTA

New Public Citizen report analyzes 42 NAFTA Investor-State challenges and illustrates how proposed CAFTA would extend threat.

More information on CAFTA

Who benefits from CAFTA?
• The multi-national corporations who continue to boast record profits.

Who loses under CAFTA?

• Farmers in both the U.S. and Central America who are forced to compete against each other for the lowest possible price in order to have a market for their commodity;
• Workers in Central American countries who are forced to compete for the lowest possible wages, the fewest possible benefits, and the lowest cost working conditions in order to “win” a contract with these multi-national companies;
• Rural communities which dwindle in all CAFTA countries as fewer and fewer family farmers are able to compete forcing them out of business and driving away the lifeblood of rural towns and villages; and
• Consumers who are forced to purchase food with no country of origin label and no assurance that their food was produced and processed in a safe, sustainable, healthy way.

This agreement has been negotiated and signed by the president. The final text is complete and can be accessed here. CAFTA is expected to be acted upon by Congress during a lame duck session shortly after elections.

You can stop this trade agreement from becoming a reality. Call your Representatives and Senators today. Tell them not to expand the failure of NAFTA and to take a public position to vote NO on CAFTA.

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