CAFTA

Since I called this site neolibs.com I should be able to stand behind the one definition that is commonly used for neoliberalism as it relates to market fundamentalism. With the CAFTA debate on the agenda now is a good time to address this definition. Neoliberals are advocates of free trade between governments that support business through policy but not through tariffs or subsidies. I believe that allowing developing nations to compete on the same platform as developed nations is the best policy for ensuring equitable trade between nations and results in higher standards of living for citizens in these competing nations. Obviously it’s a utopian view and in reality the playing field is anything but level. Instead the wealthy western nations ensure they find methods for protecting their constituents at the expense of poorer nations and the agreements in principle seem sound but in reality are anything but free.

Although it’s not perfect, CAFTA is the chance for the American government to do something right for the people of Central America. The agreement will have a net positive effect on the lives of millions of people even if it results in reduced income for some US manufacturers. Socialists argue that free trade agreements result in a drop in workers rights and the trickle-down theory following the signing of an agreement never materializes. It’s up to governments to ensure that workers profit from CAFTA. Considering Central America’s current rate of poverty it’s difficult to imagine that a flow of money into these countries as opposed to a flight of laborers to the US will be detrimental. Union members must understand that nationalistic labor policy that suppresses the advancement of any citizenry is contradictory to tenets of their movement.