To: Latin America & Economic Justice Advocates
From: Theo Sitther, Legislative Associate
Date: November 1, 2007
Re: Peru Free Trade Agreement

Issue:

After months of speculation Congress is about to vote on the Peru Free Trade Agreement (PFTA). Democratic leaders in Congress expect that the agreement will pass. The PFTA, like the Central American Free Trade Agreement (CAFTA) before it, is a manifestation of the failed “one-size-fits-all” model that does not live up to the principles of trade justice.

Background:

Peru is engaged in a delicate reconciliation process after decades of armed conflict and the country remains burdened by high levels of poverty and a growing gap between rich and poor. Some claim that the trade pact will lead to increased democratic stability in the region, curb coca cultivation and drug trafficking. Based on our experience with NAFTA and CAFTA many non-governmental organizations think the opposite is true. The Peru FTA will cause lost livelihoods in rural communities, reduced access to life-saving medicines and perpetuate the global “race to the bottom” for workers and environmental protections. The agreement, as currently negotiated, will not bring stability or development to the region! It will only give an upper hand to large corporations at the expense of poor people.

Faith Reflection

“The Lord works righteousness and justice for all the oppressed.”
– Psalm 103:6

Justice and peace should be for all people, not just the few on top of the economic scale. The Free Trade Agreement will isolate and neglect a large group of people in Peru and in the United States. God has created a wonderful diversity of peoples and cultures to express unity in diversity and calls humanity to reject violence and domination. Economic policies and structures must not be imposed on the nations and peoples of the world by dominant nations and institutions. While global links can nurture our common humanity, diverse peoples should be able to adopt a variety of economic models, compatible with their own cultures and consistent with values of freedom and justice. Economic policy makers must be willing to make room for alternative voices and models of finance, commerce and development. The U.S. – Peru Free Trade Agreement is a “one-size-fits-all” model, which does not allow for the diversity of ideas and culture.

Action

Take action to stop the U.S – Peru Free Trade Agreement. Call Congress at (202) 224-3121. Ask to be connected to your House member (give your zip code if you’re not sure of your Rep’s name).

• When you are connected, ask to speak with the staffer working on trade issues. Tell him or her that you oppose the Free Trade Agreement with Peru.
• Ask for your representative’s position on the US-Peru FTA in writing to be sent to you by email or regular mail.
• Use a local or personal story of damage from bad trade deals to illustrate your case or use the call script provided below.

Talking Points:

Hello, my name is _________, and I am a constituent. May I speak with the staffer that deals with trade issues?

I am calling to find out Representative ______________ position on the upcoming U.S.-Peru Free Trade Agreement. Can you tell me how he/she plans to vote?

It is very important that Representative _____________ come out publicly to oppose this FTA. Despite changes to the Peru FTA it will still (select one or two of the following talking points):

• THREATEN SMALL FARMERS. The agreement will favor only a small sector of Peruvian farmers who export to the US. By lowering Peru’s tariffs on agricultural products, the vast majority of farmers would be vulnerable to cheap subsidized imports from the U.S. This would wipe out local farmers—as happened to the 1.3 million who have been displaced in Mexico since NAFTA passed 12 years ago.
• THREATEN ACCESS TO LIFE-SAVING MEDICINES. While the amended text of the Peru FTA removes the worst, CAFTA-based, provisions limiting the access to affordable medicines, it still includes provisions that undermine the right to affordable medicines for poorer countries.
• THREATEN WORKERS AND ENVIRONMENT. Changes to the labor and environment provisions are insufficient. The Peru FTA allows discretion for FTA dispute settlement panels to interpret and apply the terms of the ILO Declaration on Fundamental Principles and Rights at Work differently than the Declaration has been interpreted and applied by the ILO itself. Enforcement of the new changes will be dependent on Peruvian President Garcia who has a consistent record of undermining domestic labor and environmental law enforcement.
• THREATEN WOMEN, CHILDREN, AND THE POOR. Provisions promoting the privatization and deregulation of essential services such as water, healthcare and education are written into this trade agreement. As these services become less accessible, women and the poor would have to make up for increases in prices of these services.
• THREATEN U.S. AND PERUVIAN SOVEREIGNTY. The Peru FTA contains a NAFTA-style foreign investor chapter that allows corporations to bring actions against governments that pass environmental and public health laws that might reduce corporate profits.
• THREATEN INDIGENOUS PEOPLES by opening the way for large pharmaceutical and agribusiness corporations to patent traditional knowledge, seeds, and life forms. This opens the door to bio-piracy of the Andean-Amazon region and threatens the ecological, medicinal and cultural heritage of indigenous peoples.

Would you be willing to send me an email with Representative ________________ position on the trade pact to ___________________ [email address].

* This Hotline was adapted from an alert by American Friends Service Committee.

Visits, e-mails, phone calls, faxes and letters are all good ways to contact your legislators. E-mails, phone calls and faxes are good for time-sensitive issues. Postal mail travels slowly in the Capitol, but letters have long-term impact. Be sure to include your mailing address in all correspondence to confirm your residency in a particular district and state.

We would be grateful for copies of your correspondence and any responses you receive! Please send them to