Leveling the Playing Field: Labor Provisions in CAFTA
Fordham Journal of International Law, Vol. 29, No. 2, pp. 386-446 , 2006
Posted: 24 Mar 2010
Date Written: 2006
Abstract
The U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA) is the second-largest free trade zone in Latin America for exports from the United States, which will certainly significantly affect U.S. trade with El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and the Dominican Republic. Much of the vocal opposition to CAFTA was centered on fears that CAFTA does not adequately address labor issues, both at home and abroad. This paper evaluates the CAFTA in light of those concerns. First, Part I reviews the labor objectives set forth by Congress in the Trade Act of 2002 or Bipartisan Trade Promotion Authority Act (TPA), which are to be incorporated into all free trade agreements. Part II then details labor problems in CAFTA countries relevant to the core labor standards defined by Congress. Next, Part III analyzes the labor provisions contained in CAFTA, concluding that, although they are a step in the right direction, they do not fully satisfy the labor objectives set forth in the TPA mandate and they are insufficient to address core deficiencies in CAFTA countries. Part IV then proposes more comprehensive labor provisions that should be included future U.S. free trade agreements to promote core labor standards consistent with the intent of Congress and to level the playing field more effectively for U.S. workers. Although CAFTA has been fully ratified by the United States, it is not too late to include more effective labor provisions in future free trade agreements.
Keywords: Labor Provisions, CAFTA
JEL Classification: K33
Suggested Citation: Suggested Citation