Bomb Threat, Polarized Glass and International Trade Disputes

Last week, Assembly president Francisco Pacheco ordered that the glass that separates visitors’ gallery (la barras) from the plenary where the deputies are, to be polarized. From now on, visitors can look inside (although with greater difficulty) but the deputies can no longer see the visitors. Pacheco calls this a palliative measure because deputies have been insulted by posters, gestures and writings on the glass, and proceedings have t times been interrupted by protests in the barras. At the some time, supposedly to make it easier for the visitors to see through the glass, the outside windows of the barras have been covered up, not only not letting in anymore light, but also making it impossible for the people inside the barras to communicate to those outside in front of the building. In the past, protestors inside the barras could communicate with the crowd outside and vice versa. Also, the floor of the barras, previously made of wood, has been tiled, apparently to limit the impact of foot-stomping. The climate inside the assembly had grown increasingly hostile over the previous week, mostly around the issue of PLN deputy Fernando Sanchez, co-author of the infamous memorandum. Protestors insist that he step down. While the deputies complained about the aggression and obscenity of posters and gestures in the barras, PLN deputy Jimenez cracked an ill-fated joke about an 85 year old woman, who comes every day to demand that Sanchez step down. Saying that the old woman had better stay home and say rosaries, he played into the hands of he movement, picked up that remark and proceeds to portray it as iconic for the general attitude the Grupo de los 38 (G38, the 38 deputies who support the CAFTA and the Agenda) takes towards the people.

On Thursday, a bomb threat in the afternoon forced the evacuation of the entire Assembly building, spilling deputies and staff directly into a crowd of protestors who were there as part of the nationwide campaign against the Agenda de Implementación, which kicked off that day. No bomb was found and speculation as to whether the anonymous phone call was placed by a member of the opposition to disrupt work on the Agenda, or a member of the pro-Agenda side to strengthen their arguments that the NO-TLC forces are getting increasingly violent and dangerous, abound. The day before, the security services of the Assembly decided to provide personal bodyguards to the deputies.

Meanwhile, the G38, making up the absolute majority in the Assembly, are working hard on the passage of the 13 Agenda Laws before the March 1 deadline. They are holding three daily sessions, a morning, afternoon, and evening session every day. They voted to apply fast-track legislation to several of the bills, and their staffers are meeting daily to reduce the length of proposals so as to limit their discussion time, by erasing less important aspects altogether and synthesizing remaining points into a smaller number. Since they are required by the constitution to discuss the national budget during the month of November, the budget is being passed in absolute record time, with almost no interference by members of the G38. The first law of the Agenda, the Ley de Protección de Representantes de de Casas Extranjeras, which makes it possible for trade disputes between Costa Rican and foreign businesses to be litigated in non-Costa Rican courts, has already passed. Critics of the law, first and foremost the PAC, have argued that it places small and medium sized producers, which make up 90% of Costa Rican businesses, at great disadvantage because the vast majority of them lack the resources to put up a reasonable legal defense in the American court system, especially if they are up against large corporations.

Adding insult to injury, President Arias has announced a CAFTA signing ceremony for next Wednesday, which will take place at the Teatro Melico Salazar, the same place where the Anti-CAFTA movement kicked off its campaign to defeat the CAFTA two years ago. The movement views this a pure provocation. Protests are expected.

Also last week, the six unions that comprise the workers of the state electricity and telecommunications institute, ICE, made public their intention to go on strike, if necessary to stop the opening of that sector. Fabio Chavez, of the union ASDEICE said in an interview that the union recognizes the results of the referendum but does not see them as binding on their actions because of fraud and deceit.

Opposition rejects referendum results, vows to fight Agenda de Implementación

On October 27, representatives of the different social movements that constitute the Movimiento del NO, gathered for Asamblea Nacional Patriotica. About 2000 delegates from the Patriotic Committees, Student and Labor Unions, and the various others groups that make up this diverse movement, came together to deliberate over the referendum, whether or not to accept the results, take decisions about movement structures and leadership, and devise a plan of action after CAFTA passed the referendum.

The result was a manifesto of ten main points that is now being distributed to base organizations throughout the country. Perhaps the most striking outcome of the assembly are the signs that the movement is becoming increasingly aware of its potential and of its character as a unified movement. Thus, more permanent structures were established in the form of a Coordinación Nacional made up of two representatives from each of the participating movements. Eugenio Trejos was elected to head the Coordinación. Delegates also voted to strengthen the Patriotic Committees and create a national communications network to facilitate the spreading of information. The following is a summary of the most important decisions taken:

1) Reject the result of the referendum because of structural and media fraud

2) Take all the necessary actions to study, educate about, and fight the Agenda de Implementación on the national, regional and local level.

3) Demand the renunciation of deputy Fernando Sanchez, as well as the magistrates of the Supreme Electoral Tribunal, the five judges of the Sala IV (constitutional court) that supported the TLC, and the 73 mayors that fought for the TLC with public money. The movement also demands the expulsion of the US ambassador.

4) Pressure the deputies in favor of the TLC and the Agenda inside and outside of the Congress with the necessary actions.

5) Support the deputies who are against the TLC and the Agenda with all means necessary.

6)Take up the following immediate actions:

Define a resistance strategy with coordinated and simultaneous actions at all levels, beginning with the first on November 7.

Commit to opposition to the plans regarding the opening and concession of semi-public instutions. Defend and back up the social and economic institutions which make up the base of solidaric and inclusive development model, among them the CCSS (social security), the ICE (electricity and telecom), the INS (insurance), and the JAPDEVA (infrastructure and ports of the Caribbean).

Boycott the companies that supported the TLC and/or were involved in the fraud.

Demand an end to the repressive actions against workers who are part of the Movement of the NO.

Demand a reform of the referendum rules to ensure the protection of the constitutional rights to equality of divulgation of information and use of public resources, as well as the right to non-interference from foreign actors.

If you ask yourself as I did, what “coordinated and simultaneous action beginning Nov.7” means, I think that this vagueness demonstrates the decentralized nature of the movement, basically asking the base to do whatever they can and are willing without exposing itself to repression. The Costa Rican government has passed a serious of laws that are intended to criminalize the kind of public resistance displayed in the Combo del ICE conflict in 2000. Perhaps the most prominent is Law 4573, which makes it a punishable crime to hinder the flow of traffic – a very convenient way to arrest demonstrators. The police has been demonstratively recording images of protestors during demonstrations. Police officers in full gear stand on elevated platforms and film everything that goes on. From my conversations with activists, I get the idea that the movement is preparing for active attempts of repression and wants to a) minimize the possible attrition of activists, and b) not play into the hands of the law enforcement and security apparatus. Watch for the next blog entry to read more about this.

Secondly, the regarding the pressure on deputies who support the TLC and the Agenda, the main website of the NO has begun to post images and names of those deputies with humorous and at times pretty mean descriptions of their role in the process causing Independent (recently split from the Movimiento Libertario) Evita Arguedas to express worries for her safety with great media resonance during one of the legislative sessions last week. To see them, click on the No TLC link.

Also, to read the entire Agenda decided on by the Asemblea Nacional Patriotica, go to http://www.notlc.com/27_OCTUBRE_ACUERDOS.html.

Social Movement Assembly motions to fight Agenda and prepare for Strike

About 2000 delegates of the Movimiento de NO (Comites Patrioticos and student and labor organizations, among others), voted on several motions to present to the main assembly of the NO forces on October 27. Among the proposals created on Saturday are the rejection of the results of the referendum and the decision to stop all dialog on the part of the movement with the government. Perhaps most important are the motions to "reject totally and absolutely" the Agenda de Implementacion and fight to stop every single one of its 13 projects. For this purpose, another motion calls for the preparation of a national strike, a so-called brazos caidos.

Additionally, a group of Costa Rican lawyers has filed a complaint and a request that the referendum results be annulled with the Supreme Electoral Tribunal, the Interamerican Human Rights Court, and the United Nations.

This week's Semanario devotes several articles to the analysis of the Movimiento del NO from a social movement perspective. Several analysts agree that this movement goes a lot further than the fight against the TLC, and represents a force with the possibility to democratize Costa Rican politics. They emphasize the decentralized nature of the movement, its autonomous bases and the absence of organizational hierarchy, and the independence from the parties. Some trace the mobilization potential of the movement to the struggle against the privatization attempts of the ICE in 2000 and argue that Costa Ricans have by now a network of experienced organizers, communicational structures, and awareness in the population that make this movement so powerful. Most agree that this movement has consolidated with the fight against the TLC and is here to stay.

Students and Unionists do not accept referendum results

Yesterday, the federations of the students of the University of Costa Rica (FEUCR), the National University (FEUNA), the students in secondary education (FES), as well as the the union Central General de Trabajadores (CGT) have anounced their rejection of the referendum results due to fraud. The most serious incidences according to the FEUCR were the direct intromission of the US government regarding the CBI benefits and its coverage during the media black out, and the coverage of CNN Espanol of the CBI debate, including interviews with Pro-CAFTA representatives for large periods of time on saturday before the referendum. The groups have called for a general assembly at the UCR today to decide the next step.

Report shows negative track record of CAFTA in Central America:

“DR-CAFTA Year Two: Trends and Impacts,” is the English title of a report presented by the Red Regional de Monitoreo de DR-CAFTA in September in San Jose. The Red is a group of more than 15 organizations from the CAFTA countries, including the Confederacion Guatemalteca de Federaciones de Cooperativas (CONFECOOP), the Centro de Estudios en Inversion y Comercio de El Salvador (CEICOM), the Coalicion Hondurena de Accion Ciudadana (CHAAC), the Movimiento Social Nicaraguense, and the Comision Nacional de Enlace de Costa Rica. And it paints a dismal picture of the impacts of CAFTA on the region.

The Central America countries and the Dominican Republics have seen their trade balances wit the US reversed. Export growth from the region to the US since the retification of the treaty were: El Salvador 3.7%, Honduras 5.7%, Nicaragua -.1%, and Dominican Republic –12.7%, while imports from the US grew 11.2% for El Salvador, 26% for Honduras, 27.5 for Nicaragua, and 13,5 for the DR. (numbers reported in Semanario Universidad).

At the same time, foreign direct investment decreased by 42%in the region. That means -$180 million in El Salvador, -$180 million in Honduras, -$23.4 million in the DR. Nicaragua received a total of $56 million during that time.

The report argues that "the parties to the agreement are experiencing an overall worsened trade balance with the US. Imports of US agricultural products to the region have outpaced exports, Central American and Dominican producers fail to compete against subsidized US agricultural goods." Central American farmers cannot compete with subsidized agricultural products from the US, and the vast majority does not posses the resources to even contemplate exporting the US, as the investments necessary to comply with the phytosanitary standards required by the US. As a result of the inability of small and medium sized producers to compete, the region is entering into severy food security problem, as it is losing the ability to feed itself and becomes increasingly dependent on US imports. Partly due to the biofuel trend, however, food, especially corn prices are already rising. The price of white corn in El Salvador, for example, increased by 81.6%. The Consumer Price Index rose by 5.1% in Guatemala between June 2006 and April 2007; the price of corn rose 26%, rice, 9.3%, bread, 9.5%. In the same June 2005 to April 2006 period prior to CAFTA those numbers were, 2.4%, 1.2%, and 2.4%.

The promises regarding employment have also not been fulfilled: According to the report 22 textile companies left the region since CAFTA implementation, causing the loss of some 50.000 jobs. In Nicaragua, alone, seven new maquila factories have opened and created 1,993 new jobs in 2007. But at the some time, other factories have shut down costing the country 4,000 jobs.

http://lasolidarity.org/CAFTA_report/CAFTAYear2_monitoring_eng.pdf

The report also includes a paper by Costa Rican economist and professor at the UCR Marta Trejos analyzing the provisions of CAFTA and its impact on Costa Rica. I pasted an excerpt from the article “Region has Squandered its Balance of Trade under CAFTA, Says Report” from the Latin American Database, summarizing her findings:

“In her paper, CAFTA in Costa Rica Would Cause Deepening Inequality, Trejos notes that the opposition in the country, which is formidable, is based on the advanced development of social services, which far outstrip the rest of the region. The people, she says, know they have a lot to lose, and she riffles through CAFTA's thousands of pages to parse out the most significant potential losses:

On biodiversity, Chapter 15 on intellectual property permits patenting the genes of living organisms, while Chapter 10 prohibits requiring knowledge transfer, so that multinationals "can conduct research into our native species and maintain any knowledge they might acquire in secrecy." The loss of sovereign control accrues to the benefit of cosmetic and pharmaceutical industries.

On water and natural resources, she shows that Chapters 10 on investment, 17 on environment, and 20 on dispute resolution, when taken together, enable multinational corporations to sue the government of Costa Rica should it take measures they might consider equivalent to expropriation or that affect their earnings. "With this," she writes, "businesses' access to the water and natural resources and their 'right' to profits take precedence over any measure (whether human or social) that might be taken by the government or municipalities."

On culture and knowledge, Chapters 15 and 10 allow multinationals to own the seeds of a species and traditional knowledge of plants and animals.

On markets, the early chapters allow subsidized imports from the US to enter while denying Costa Rica a tariff option. The case of Mexico under NAFTA provides an example of how agricultural jobs disappear as food from the US replaces nationally produced food without lowering national food prices. "In fact, the price of essential foodstuffs has risen while ruining the livelihoods of rural workers."

On current public investment, the strictures on water and natural resources also apply to public services including telecommunications and the insurance industries, so that the multinationals can sue the country for affecting their profits or expropriation, or for any restriction or attempt to maintain them under public dominion. In addition to the chapters cited for these rights, there is also Annex II, Non-Conformant Measures, Costa Rica list.

On cheap labor, Chapter 16 limits redress, except in limited instances, to labor violations that harm companies, but not those that harm workers. The country is committed to prevent violations "if commerce is affected."

On national sovereignty, CAFTA provisions prevail over national law, such that no law can be passed or remain in force that conflicts with a CAFTA precept. Transnationals take their demands to arbitration courts whose decisions can "modify both the decisions of internal courts and of state organisms at any level, taking into account only that which is stipulated in the agreement and not in the Costa Rican Constitution." CAFTA leaves the state with the authority to take measures to protect health and life, "as long as they do not affect commerce."

Most of these provisions, save those having to do with Costa Rica's telecom and insurance state monopolies, put the country in the same boat with its neighbor CAFTA countries. But Trejos emphasizes that Costa Rica is the only country that did not make any provisions to protect its small producers, poor women, native peoples, or its poor. She argues that a treaty that does not protect its most vulnerable sectors affects women disproportionately because women already constitute a disadvantaged sector. So, female small farmers who feed their communities "may now encounter obstacles in the continuation of their traditional practices, not only because the intellectual property stipulations in CAFTA enable the multinational companies to patent plants and animal species, but also because the treaty reinforces multinational property rights on their seeds."

PAC continues to steer unclear course

The PAC announced yesterday that they are not committed to stick to the March deadline for the passing of the Agenda de Implementacion. That is the problem of the Group of 38 (the 38 deputies that support the TLC and the Agenda), said Rafael Madrigal, sub-chief of the fraction. Elisabeth Fonseca furthermore said that she did not recall saying the sentence attributed to her in which she promised to respect the deadline on Tuesday.

The PAC is apparently trying to have it both ways, probably due to intense pressure from the grassroots base, especially the Comites Patrioticos. In a meeting with several representatitives of the base committees, Otton Solis is reported to have promised that the PAC will fight the Agenda de Implementacion until the bitter end. He furthermore is supposed to have denied the separation of the PAC from the movement. So what are they doing? Is there are division in the leadership, or do they simply have no plan? To be continued.

La Nacion article:
http://www.nacion.com/ln_ee/2007/octubre/12/pais1275329.html

PAC agrees to Agenda de Implementacion, suggests Agenda de Mitigacion

The Partido de Acción Ciudadana, the PAC, has now officially agreed to cooperate in the passing of the Agenda de la Implementación, stressing that the party still disagrees with the treaty, but that they are not an obstructionist party and will allow the Agenda to be passed by March (the deadline for joining the CAFTA). Elisabeth Fonseca, leader of the parliamentary fraction, apparently announced the separation of the PAC from the movement against the TLC since this alliance has “completed its mission.” (see La Nación, Oct.10) I write “apparently” because some PAC members deny that she said that. At the same time she said that the PAC would of course continue to participate in the meetings of the NO camp, as they represent a “great citizen effort”. The same ambiguity and contradiction is visible in Otton Solís’behavior, who has was quoted on Tuesday as saying that the PAC will agree to the Agenda, but not one step more than what the CAFTA requires. Recall that the Agenda is the package of 13 legal changes that are required to allow the CAFTA to take effect. Among them are the opening of the state-monopoly of the telecom and insurance sector, changes to corporate laws, and changes in intellectual property rights. According to a listserv of the NO camp, Solís then promised not to allow the Agenda to go through in front of various representatives of the Patriotic Comités on Wednesday night. Today, he presented a letter to president Arias in which he outlines an Agenda de Mitigación, which is supposed to protect against some of the worst effects of the CAFTA. Among the 18 projects suggested by Solis are 2% higher education spending, an end of tax breaks for large corporations, the creation of a development bank, subsidies for small and medium agricultural producers, and the de-politicization of the appointment process for the leadership of the semi-public, or state-owned institutions.

Meanwhile, the TSE (Supreme Electoral Tribunal) continues with the hand-count of all the ballots, which has to be finished by October 22. You can watch them counting on the TSE website (see links). This is standard procedure. The movement of the NO is engaged in a heated discussion over whether or not to accept the results, what to make of the PAC position, and what position to take regarding the coming legislative battle over the Agenda de Implementación. José Merino from the Frente Amplio, and Oscar López from the Partido de Accessibilidad Sin Exclusión are the only two legislators who have vowed to fight the Agenda de Implementación.