Colombia Free Trade Deal Could Boost Cocaine Exports
There's only one Colombian industry that can potentially employ workers who would lose their job in the wake of a free trade deal.
Manuel Esteban Tejada was a teacher in the Colombian province of Cordoba, near the Panamanian border. Unfortunately for him, he was also a union member. On January 10, paramilitary gunmen broke into his house at 6 a.m. and shot him multiple times, killing him.
Tejada was the first trade unionist killed in Colombia in 2011, but not the last. At least five more have already been killed this year. Colombian and international labor officials report that 51 unionized workers in Colombia were killed in 2010--25 of them teachers. More union members were killed in Colombia last year than in the rest of the world combined.
The fact that Colombia is the most dangerous country in the world to belong to a union hasn't kept President Barack Obama from backing a free-trade deal with the South American nation that would further erode labor rights and wages.
Obama and Colombian President Juan Manuel Santos recently announced a labor rights "action plan" as a ploy to gain congressional votes in favor of the controversial deal. The Obama administration hopes this effort, which would do virtually nothing to deal with the violence targeting labor leaders, will convince some Democrats to hold their noses and vote for the trade deal, despite Colombia's deadly labor track record.
Just days before the two leaders made their announcement, Hector Orozco and Gildardo Garcia--farm workers who belonged to a union--were murdered. Business as usual in Colombia.
It's no surprise that Washington would sacrifice labor rights in the rush to secure this free trade deal. But Colombia isn't only the world's leader in union murders--it's also the world's leading cocaine producer. Although efforts to stamp out drug trafficking have dominated the U.S.-Colombia relationship for decades, this trade deal would likely boost cocaine production.
Free trade deals scrap tariffs and quotas on imports. Countries that enter such agreements can no longer protect strategic industries and sectors to ensure they are competitive. And no one in Latin America can compete with U.S. grain farmers. The technology, mechanization, and subsidies at U.S. famers' disposal make grain production in the United States extremely cheap relative to Latin America.
For example, once Mexico eliminated corn tariffs and quotas under NAFTA guidelines, an estimated 2 million Mexican corn farmers went bankrupt. They simply couldn't compete with U.S. corn prices.
Research has shown that 1.8 million Colombian farmers will see their net income fall 17 percent if the U.S.-Colombia trade deal is enacted. An estimated 400,000 will see their net incomes fall by between 48 percent and 70 percent.
Meanwhile, Caterpillar (which wants to sell bulldozers to Colombia), Walmart (which wants to resume tariff-free purchases of Colombian flowers), and other large U.S. corporations stand to profit handsomely from the U.S.-Colombia free trade deal.
Free traders in Congress and the corporate lobbyists who are pressuring them insist that the trade deal will create new jobs, absorbing people from sectors without a "comparative advantage." That's a boldface lie. Since the early 1990s, nearly all Colombian exports have entered the U.S. tariff-free under the Andean Trade Promotion and Drug Eradication Act. Any jobs created in Colombia by gaining unfettered access to U.S. markets were created years ago.
But there is one Colombian export market that can always absorb new workers: the cocaine trade. When Colombian farmers are pushed out of grain farming due to cheap U.S. imports, expect them to face a terrible choice. They'll either lose their farm, join the vast ranks of Colombia's unemployed, and watch their children drop out of school and become malnourished--or switch to farming coca crops to stay on their farm, keep their kids in school, and put food on their tables.
Colombian farmers want out of coca farming because it doesn't pay very well and violence often dogs coca production. But the U.S.-Colombia trade deal will leave them with virtually no other choice.
By pushing it forward, Washington is catering to corporate interests instead of heeding Colombia's human rights crisis and seriously considering its impact on illegal drug trafficking. We can only hope that there are enough lawmakers willing to recognize that this deal isn't worth the costs to us or to Colombians.
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