Support Labor Rights in U.S. Trade Agreements In his May 9 speech on trade policy, President George W. Bush said that "in good time... societies that open to commerce across their borders will open to democracy within their borders." Trade may in fact be essential to the reduction of abject poverty around the world. But open trade alone does not lead to open societies that respect human rights. For example: Increased international trade has not lessened the Chinese government's determination to snuff out political opposition, or ended discrimination against women in Guatemalan maquiladoras, or freed children from hard labor in factories in South Asia. In Sudan, oil revenue made possible by international investment has allowed the government in only two years to nearly double the defense budget for its highly abusive war. In Central Asia, after the collapse of the Soviet Union, international investment in oil and gas exploration and production has strengthened the resolve of governments to cling to power while their people plunge into poverty. In Sierra Leone and Angola, international trade in diamonds has fueled deadly civil wars. The number of migrant workers and trafficking victims has also grown with international commerce, yet abuses against them remain largely ignored. Experience shows that global economic integration is no substitute for a firm parallel commitment to defending human rights. Human Rights Watch encourages the U.S. not to shut down trade, but rather to raise standards and protect human rights in a way that's enforceable. Future trade agreements must contain basic provisions for labor rights including the right of workers to organize and to be free of abuses such as forced labor and child labor. NAFTA's Failure In April 2001, on the eve of the Quebec summit of Western hemisphere leaders, Human Rights Watch released its report Trading Away Rights: The Unfulfilled Promise of NAFTA's Labor Side Agreement (see our April 16, 2001 press release) The report, analyzes the twenty-three complaints filed under the accord since it came into force in 1994. The complaints allege systematic workers' rights violations in all three countries - fourteen in Mexico, seven in the United States, and two in Canada. Companies named as violators include General Electric, Honeywell, Sony, General Motors, McDonald's, Sprint, and the Washington State apple industry. The NAFTA labor provisions, known formally as the North American Agreement on Labor Cooperation (NAALC), are the most ambitious link between trade and labor rights ever implemented. They include 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 so far 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." Not one of the 23 complaints filed under NAALC had so far resulted in sanctions against an alleged labor rights violator. At the meeting in Quebec, the leaders of hemisphere have agreed to negotiate Free Trade Area of the Americas by 2005. The proposed Free Trade Area of the Americas (FTAA), a key agenda item at the Quebec summit, should be designed to avoid the weaknesses of the NAFTA regime. Current Agreements Last year, the United States negotiated and signed a trade agreement with Jordan that contained strong provisions protecting basic labor rights. The agreement gives both countries the right to use sanctions to enforce labor rights provisions. These labor protections set a strong precedent for future agreements. The agreement is currently being held up in the Senate where it awaits ratification. If you live in the United States, contact your representatives urging them to ratify the Jordan trade agreement without amending it. Fast Track Trade Authority "Fast Track Trade Authority" gives the President the power to negotiate international trade and investment agreements that Congress may accept or reject without amendment. Congress may begin debating fast track some time in June. Fast Track Trade Authority should require the negotiation of strong protections for labor rights. Enforcement Protections for labor rights mean little without adequate monitoring and enforcement. In an April 27, 2001 letter to US Trade Representative Bob Zellick Human Rights Watch recommended the use of monetary fines as the primary tool for enforcing trade agreement provisions, including workers' rights protections. The letter warns that the option of trade sanctions should still be reserved if governments refuse to pay penalties, or continue systematic violations of a trade agreement. If monetary penalties are to be incorporated into future trade agreements, labor rights protections should be subject to the same enforcement procedures available to other issues, such as protections for intellectual property. Human Rights Watch also stresses the need for an independent oversight body to ensure that labor rights protections in future trade pacts are respected. Such a body should have the authority to hear complaints from individuals, governments and non-governmental organizations, to initiate investigations on its own, to recommend remedies, and to impose penalties when governments fail to act.