Source: Carnegie

For Immediate Release: February 14, 2003
Contact: Carmen MacDougall, 202-939-2319, cmacdougall@ceip.org

Two New Papers on Central American Trade Negotiations Propose Solutions That Promote Workers' Rights, Environmental Protection, Trade

The U.S. Congress has instructed the administration to treat labor and environmental issues as key objectives in trade negotiations, and nowhere will the challenge be more formidable than in newly launched talks with Central American governments. In new papers from the Carnegie Endowment's Trade, Equity, and Development Project, senior associates Sandra Polaski and John Audley show how an agreement can benefit Central American workers, enhance environmental protection, and invigorate the regional economy-while providing attractive opportunities for firms and investors. The recommendations build on recent, successful experiments undertaken by the United States and developing countries in other trade agreements.

In her paper, "Central America and the U.S. Face Challenge-and Chance for Historic Breakthrough-on Workers' Rights," Polaski notes that violations of workers' rights and rule of law are serious and widespread in the region. She offers a proposal for the agreement which creates incentives for governments and firms in Central America to improve treatment of workers, labor laws and enforcement. Despite the deeply entrenched nature of the problems, "a key reason that this approach can succeed where Central American governments alone have not, is that it aligns private sector incentives with public interests," she writes.

Audley, in "Opportunities and Challenges to Advance Environmental Protection in the U.S.-Central American Free Trade Negotiations," offers guidelines that will result in a trade regime that promotes environmental protections, strengthens rule of law, and encourages good governance. Steps to achieve this ambitious agenda include building on environmental protection efforts already underway; creating trade-related incentives, such as promotion of green product exports; and including good governance provisions: dispute settlement proceedings, environmental reviews, and participation and transparency measures.

Sandra Polaski was the U.S. Secretary of State's special representative for international labor affairs and negotiated the labor provisions of pathbreaking trade agreements with Jordan and Cambodia.

John Audley was the trade policy coordinator at the U.S. Environmental Protection Agency (EPA). He is author of Green Politics and Global Trade (Georgetown University Press, 1997).

These papers-in English and Spanish-are only available online at www.ceip.org/trade.

###