Eduardo
Stein
“The Impact of the Central American
Free Trade Agreement”
May
4, 2005 |
|
|
Eduardo
Stein, the Vice President of Guatemala, spoke about the
impact of CAFTA on his country at the Faculty Club on
May 4. |
- Interview
with Dr. Stein by the Fund for Peace (2002)
Who
Benefits From Free Trade?
By Paul Gordon
As
the U.S. Congress begins debating the Dominican Republic–Central
American Free Trade Agreement (DR-CAFTA), the stakes are high
for all parties. For the six signatories in Central America
and the Caribbean the agreement could either be a key to development,
as proponents argue, or a vehicle that locks in the worst aspects
of the status quo, as critics charge. For the U.S. all sides
agree that DR-CAFTA could prove a powerful precedent for the
Free Trade Agreement of the Americas and future U.S. trade
policy.
Two
prominent Guatemalan leaders, Bishop Alvaro Ramazzini and Vice
President Eduardo Stein, came to CLAS to present their contrasting
viewpoints on the effects that DR-CAFTA would have on Guatemala
and the rest of Central America.
Bishop Ramazzini’s visit to UC Berkeley came on the heels of his April
13th testimony before the International Relations Subcommittee on the Western
Hemisphere in the U.S. House of Representative. Bishop Ramazzini, who heads
the Episcopal Secretariat of Central America (SEDAC), expressed concern about
the consequences of DR-CAFTA for Guatemala’s large population of rural
poor. He came to Berkeley to outline his opposition to the trade agreement,
as well as to discuss the importance of a more humane immigration policy in
this time of increased globalization.
A central theme of Bishop Ramazzini’s remarks was: free trade for whom?
He pointed out that the Guatemalan government already has a “free trade” policy,
but this policy has not benefited the country’s poor, indigenous and
rural populations. “How can we have free trade,” he asked, “if
there are beer and cement monopolies, among others, in the country?” Ramazzini
insisted that what free trade means in practice is the violation of workers’ rights,
pointing to the fact that 95 percent of agricultural workers in Guatemala earn
salaries of $1-3 per day under poor working conditions.
Furthermore,
he argued that it is impossible to compete on an equal footing
with the U.S. as long as a large part of the Guatemalan population
remains illiterate and without access to formal education. “We
don’t need CAFTA,” the bishop stated, “What
we need is a local rural development plan.”
Bishop
Ramazzini also condemned the fact immigration is not mentioned
in DR-CAFTA even though it is closely linked to economic conditions.
The brutal conditions endured by migrants are brought regularly
to his attention; families come to his office in San Marcos
to ask for help locating loved ones lost in the United States,
many of whom are never found. Others return months later recounting
stories of inhumane treatment. President Bush’s support
for family values also came under fire when Ramazzini questioned
why he doesn’t allow for the reunification of immigrant
families, leaving many families divided for years. Finally,
he decried what he called the hunting of human beings in Arizona
and other vigilante efforts to control immigration.
A
few days after Bishop Ramazzini’s talk, the vice president
of Guatemala, Eduardo Stein, came to Berkeley to explain the
government’s rationale in ratifying DR-CAFTA, while responding
to the critiques offered by the bishop and others. On some
points, Stein was in agreement with Bishop Ramazzini, particularly
on the need for a broad plan of economic reforms to address
the pressing issue of poverty in Guatemala. The vice president
pointed to a number of troubling trends in Guatemalan society,
including deficiencies in the democratic process, social exclusion,
corruption, organized crime and racism towards the indigenous
population. In response, Stein argued that any new political
and economic reforms should have at their core the goals of
greater equality and social cohesion.
In
particular, Vice President Stein advocated a set of policies
that he claimed would, if implemented, help to open up opportunities
for the poor under DR-CAFTA. Training and education for the
demands of the 21st century would help to redistribute income
more equitably and close the gap between the rich and the poor.
Additionally, he proposed government assistance in generating
markets for the sale of indigenous goods .
Throughout
his speech Stein made reference to the importance of remittances — $2.5
billion last year — in boosting the Guatemalan economy.
With roughly 10 percent of the population living in the United
States, the issue has assumed great importance. Stein suggested
that these remittances could be “the new social security.” As
a form of income that goes directly to families in need, remittances
could assist in the progressive redistribution of income to
the poor. Thus, he maintained that an important focus of government
policy should be strengthening connections with Guatemalans
living abroad.
In
addition to advocating social and economic reforms for the
poor, Stein resolutely defended the macro-level benefits of
DR-CAFTA for Guatemala. The vice president argued that the
agreement would standardize the rules and regulations for trade
between Central America and the United States, replacing the
arbitrary annual negotiations that currently take place. It
could also assist in the integration of the Central American
nations, helping them to form a unified block for future negotiations,
perhaps with the European Union. Finally, Stein argued that
the world is so interdependent now that Guatemala must do something
to get a foot in the door. The damage of abstaining from such
an important trade policy would be too great.
Neither
Stein nor Ramazzini referred specifically to the violence that
rocked Guatemala during the congressional debates over DR-CAFTA.
In March, thousands of protestors took to the streets to oppose
the government’s attempts to ratify the trade agreement
and were met by scores of police officers and soldiers with
tear gas, rubber bullets and water hoses. On March 15, the
day that Guatemalan President Oscar Berger signed DR-CAFTA,
two protesters were shot and killed by government forces in
the province of Huehuetenango.
Nonetheless,
both had opinions on the reasons for the protests. While Stein
chastised the protestors for waiting until the very end of
negotiations to raise their concerns, Ramazzini insisted that
the popular sectors have always criticized the trade agreement.
According to Bishop Ramazzini, the negotiations involved only
representatives from the government and business community,
excluding the popular sector of campesinos and unions. In response,
Stein maintained that the negotiations were private but not
secret since they were publicized in many news sources.
The
two also offered starkly different arguments on the contentious
question of opening up food markets for direct competition
between Central America and the United States. Sugar will be
the only commodity in which Guatemala holds the advantage,
warned the bishop. Heavily subsidized rice, corn, potatoes
and meat from the United States will put local producers in
Guatemala out of work, especially since few of their products
meet the strict health codes necessary for resale in the U.S.
Stein countered that white corn, the primary staple for indigenous
cooking and rituals, is excluded from open markets under DR-CAFTA.
Only yellow corn — used to feed cattle — will be
allowed to compete with Guatemalan produce.
In
either case, it is clear that DR-CAFTA, if approved by the
U.S. Congress, will present formidable challenges to Guatemala
and the rest of Central America.
Alvaro
Ramazzini, Bishop of San Marcos, Guatemala, spoke at UC Berkeley
on May 2. Vice President of Guatemala, Eduardo Stein, gave
his presentation on May 4.
Paul
Gordon is an undergraduate student in the Women’s Studies
and Ethnic Studies Departments.
Original
event text
Eduardo
Stein
“The Impact of the Central American Free Trade Agreement”
Eduardo
Stein is the Vice President of the Republic of Guatemala. Previously,
he was a consultant for the International Organization for
Migration, focusing on strategies and development projects
related to issues of migration to the U.S. Dr. Stein also served
as Guatemala’s Foreign Minister from 1996–2000.
In that capacity he was an active participant in the country’s
peace process during the final negotiating phases (1996) and
in the promotion of international support for the implementation
phases (1997-99). He helped revamp Guatemala’s foreign
relations agenda in several fields including human rights,
indigenous peoples’ rights, foreign aid, regional development,
environmental issues, trade and tourism.
- Interview
with Dr. Stein by the Fund for Peace (2002)
|
|
Dr.
Stein speaks with an audience member after the event. |
