CAFTA

Honduras: AFL-CIO blames trade policies for crisis

US political and trade policies "play a major role" in worsening the poverty and violence that are root causes of unauthorized immigration to the US by Hondurans, according to a report released by the AFL-CIO, the main US labor federation, on Jan. 12. The report, "Trade, Violence and Migration: The Broken Promises to Honduran Workers," grew out of the experiences of a delegation the union group sent to Honduras in October following a sharp increase in migration from the country by unaccompanied minors the previous spring. The report notes that Honduras is now "the most unequal country in Latin America," with an increase in poverty by 4.5 percentage points from 2006 to 2013. "[T]he percentage of those working full time but receiving less than the minimum wage has gone up by nearly 30%."

Central America: US pushes new 'Plan Colombia'

On Jan. 29 the administration of US president Barack Obama announced that its budget proposal to Congress for fiscal year 2016 (October 2015-September 2016) would include $1 billion in aid to Central America, with an emphasis on El Salvador, Guatemala and Honduras. The goal is to help "implement systemic reforms that address the lack of economic opportunity, the absence of strong institutions and the extreme levels of violence that have held the region back at a time of prosperity for the rest of the Western Hemisphere," according to a White House fact sheet. The New York Times published an op-ed the same day by Vice President Joseph Biden explaining the request as a way "to stem the dangerous surge in migration" last summer—a reference to an uptick in border crossings by unaccompanied Central American minors that peaked last June and quickly diminished in subsequent months.

Central America: refugee 'crisis' plan gets a debut

The Inter-American Development Bank (IADB) hosted a special event on Nov. 14 in Washington, DC to present a plan that El Salvador, Guatemala and Honduras—Central America's "Northern Triangle"—are proposing as a response to the spike earlier this year in immigration to the US by minors from their countries. The "Plan of the Alliance for Prosperity in the Northern Triangle: A Road Map" was originally released in September and is similar to programs announced at a July summit in Washington. However, the IADB event, with US vice president Joseph Biden and the three Central American presidents in attendance, "was the real 'coming out' party for the proposals," the DC-based Center for Economic and Policy Research (CEPR) wrote in its "Americas Blog."

Latin America: GAO reports on FTA labor violations

On Nov. 13 the US Government Accountability Office (GAO), an agency that investigates federal spending for Congress, released a report on the US government's handling of labor violations in countries with which it has "free trade" agreements (FTAs). Recent FTAs, such as the 2004 Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), have requirements for participating countries to meet certain standards in labor practices. The GAO claimed to find progress in this area in the partner countries—but also "persistent challenges to labor rights, such as limited enforcement capacity, the use of subcontracting to avoid direct employment, and, in Colombia and Guatemala, violence against union leaders."

Guatemala: activists defeat 'Monsanto Law'

Guatemala's unicameral Congress voted 117-111 on Sept. 4 to repeal Decree 19-2014, the Law for Protection of Procurement of Plants, in response to a lawsuit and mass protests by campesinos and environmentalists. The law, which was to take full effect on Sept. 26, provided for granting patents of 25 years for new plants, including hybrid and genetically modified (GM) varieties; unauthorized use of the plants or seeds could result in one to four years in prison and a fine of $130 to $1,300. The law had already been weakened by the Court of Constitutionality; acting on an Aug. 25 legal challenge from the Guatemalan Union, Indigenous and Campesino Movement (MSICG), the court suspended the law's Articles 46 and 55. The law was originally passed to comply with an intellectual property requirement in the 2004 Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), and it was unclear whether Guatemala might now be excluded from the US-promoted trade bloc.

Honduras: US-Korean maquila accused of CAFTA labor violations

Some 30 inspectors from the Honduran Labor Ministry visited the Kyungshin-Lear Honduras Electrical Distribution Systems auto parts assembly plant in a suburb of the northern city of San Pedro Sula on Aug. 13 after local media reported that some employees had to wear diapers at work because of restrictions on their bathroom breaks. Workers for the company, an affiliate of the Michigan-based Lear Corporation and Korea's Kyungshin Corp, say there are many other labor violations, such as forcing pregnant women to stand while doing assembly work. According to an Aug. 12 press release from the AFL-CIO, the main US labor federation, management has fired 26 workers so far this year for trying to form a union at the maquildora (assembly plant with tax exemptions producing for export).