Source: Carnegie

ISSUE BRIEF
TRADE, EQUITY, AND DEVELOPMENT PROJECT
February 2003

Central America and the U.S. Face Challenge-and Chance for Historic Breakthrough-on Workers' Rights

By Sandra Polaski

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Summary
The U.S. Congress has instructed the administration to treat labor issues as a key objective in trade negotiations, and nowhere will the challenge be more formidable than in newly launched talks with Central American governments. Polaski notes that violations of workers' rights and rule of law are serious and widespread in the region. She offers a proposal for the U.S. - Central American Free Trade Agreement (CAFTA) 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. Polaski's recommendations build on recent, successful experiments undertaken by the United States and developing countries in other trade agreements.

About the Author
Sandra Polaski is a senior associate with the Trade, Equity, and Development Project at the Carnegie Endowment for International Peace. She served from 1999-2002 as the Special Representative for International Labor Affairs at the U.S. Department of State, the senior official handling labor matters in U.S. foreign policy.

Also Read on CAFTA: John Audley's "Opportunities and Challenges to Advance Environmental Protection in the U.S.-Central American Free Trade Negotiations"