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Environmentalists urge more FTA debate
June 6, 2002 President of the Chamber of Deputies' Environmental Commission, Alejandro Navarro, of the Socialist Party (PS), has issued a call for increased debate about the environmental impact of the free trade agreements (FTAs) with both the U.S. and the EU in response to recent sharp criticism from Chile's environmental community. Environmental activist Sara Larrain said the FTAs with the EU and the U.S. have not been effectively presented to the public and that both accords are dangerous because they are based on the model established by the North American Free Trade Agreement (Nafta), which links the U.S., Canada and Mexico. She said the agreements favor big business, facilitating the exploitation of Chile's natural resources, placing them in danger of depletion. The ecologist also argues that the trade agreements will not mean higher salaries for workers, but will definitely bring about poor environmental conditions, especially in the country's rural regions, where forestry, fishing and mining companies will expand operations. This, she said could generate social problems, as certain portions of the country will be harder hit by the negative impact of the FTAs. The environmental NGO, Sustainable Chile, agrees with much of Larrain's argument, saying new legal regulations must be introduced to the legislation to protect Chile's resources. The organization said Chilean lawmakers must work to ensure that the environmental costs of the agreements are spread equally between the participating states, that is to say EU countries, the U.S. and Chile. Sustainable Chile representatives said the current version of the accord grants disproportionate protection to the northern hemisphere countries, while ignoring national interests. These concerns prompted Navarro to call for increased debate on the environmental aspects of the EU and U.S. FTAs, which must be approved by the Congress. He said Chile must exercise caution in exploiting fish, forest and water reserves, as they are the basis of the country's economic development. In related economic news, former U.S. Ambassador to Chile, John O'Leary, published an article in this month's U.S.-Chile Chamber of Commerce Report, about on-going FTA negotiations between the two countries. O'Leary said recent set backs in the approval of Trade Promotion Authority (TPA), commonly known as fast track, will not de-rail the trade negotiations. "Fast track is the easy way. But no one should underestimate the resolve in Washington, this time, to get the job done. Even if it takes the hard way. Even if it means, if necessary, finishing the Chile FTA as it began - without TPA," he said. TPA would grant U.S. President George W. Bush the right to negotiate trade agreements that could then be approved or rejected by Congress, but not amended. The U.S. Senate recently approved the legislation, but amended the bill to allow for revision of clauses that affect national economic interests. Economists said the amendment all but eliminated the effectiveness of TPA. Some analysts speculate that the debate over TPA in Washington could hold up negotiations with Chile, which began in 2000. O'Leary, however, said both sides are committed to finalizing the agreement before years end, regardless of the status of TPA.
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