"Free" Trade at What Cost?

NOW, the National Organization for Women

A segment from:
Bush Wins the CAFTA Battle, Women and Poor Workers Pay the Price

Written by NOW Staff

August 2, 2005

"Free" Trade at What Cost?

CAFTA's provisions lack strong labor and environmental protections, making it harmful to both U.S. and Central American workers and farmers. It does not require compliance with even the most basic internationally recognized labor rights and specifically fails to protect women workers against discrimination.

CAFTA will increase the number of households living in poverty, and almost a quarter of Central American households are headed by women. CAFTA, as in the case of NAFTA, enables trans-national companies to move their businesses to Central America where they can get away with paying low wages, exploiting the use of pesticides and chemicals that are prohibited in the U.S., and subjecting workers to harmful conditions that violate international human rights standards.

Women constitute the majority of workers in Central American maquilas (factories), which are expected to grow in numbers under CAFTA. While women may appear to have more earning potential in the maquiladora (manufacturing) sector, their work is precarious and unstable. In order to make more money, they work grueling hours under poor conditions with low morale. Intense and long workdays, nonpayment of overtime; no personal leave for reasons of health or family obligations, labor violence (which implies, among other things, beating and verbal abuse) are all common practices in many maquilas.

In addition, CAFTA's language on labor rights does not address problems such as sexual harassment and discrimination, which could have serious repercussions for women who work in the maquiladora sector throughout the region. According to reports, intrusive pregnancy tests are required in order to apply for leave and benefits (vacations, Christmas bonuses, etc.). There also has been an increase in the practice of deducting fees for pensions and health-care from workers' salaries, which are then unfairly appropriated and never transferred to the proper institutions, such as the Social Security Agency.

There is a continuing myth that jobs created by international investors and free trade agreements bring women out of poverty. However without the support of unions or the ability to negotiate fair wages, jobs in export processing zones often leave women with a little more that the barest necessities.

CAFTA will also raise the cost of essential necessities for Central American and Dominican Republic families. The flood of foreign goods into the local markets as generated by CAFTA (due to the elimination of tariffs on such goods) will not only force out local (often women-run) competition, but also increase prices of basic commodities. And CAFTA also prevents approval of inexpensive generic medicines, threatening poor women's health and the lives of people with HIV/AIDS.

Sources:

World Resources Institute
EPICA: "Surviving Free Trade: Women's Voices from Nicaragua and Honduras," May/June, 2002
International Gender and Trade Network: "Bankrupt U.S. Economic Policy Forecloses on Women's Human Rights"
STITCH: Women United for Worker Justice