[Ip-health] Oxfam - DR-CAFTA Bad Deal For Poor Countries

[Mike Palmedo]

http://releases.usnewswire.com/GetRelease.asp?id=3D50849

DR-CAFTA Bad Deal For Poor Countries; Oxfam Urges U.S. House of
Representatives to Reject Trade Agreement

7/26/2005 10:06:00 AM

To: National Desk

Contact: Laura Rusu of Oxfam America, 202-496-3620 or 202-459-3739

WASHINGTON, July 26 /U.S. Newswire/ -- International agency Oxfam called
on U.S. Members of Congress today to reject the Free Trade Agreement
between the United States and Central American countries and the
Dominican Republic (DR-CAFTA.) Oxfam believes that the agreement, in its
current form, will do more harm than good and will endanger the
livelihood of many thousands of small farmers who already live in poverty.

Oxfam joined numerous other non-governmental organizations and Members
of Congress from both sides of the aisle at a press conference today,
calling for the rejection of DR-CAFTA. The trade agreement is expected
to come up for a final vote in the U.S. House of Representatives before
the August recess. The Senate has approved the agreement by a very
narrow margin.

"The case has been made from a wide range of perspectives that DR-CAFTA
is the wrong trade deal to improve the livelihood of millions in Central
America, the Dominican Republic and the U.S.," said Stephanie Weinberg,
trade policy advisor at Oxfam. "In this final hour when back room deals
are being brokered, we will see whether Congress will put the needs of
U.S. agribusiness and pharmaceutical companies above the basic
development needs of Central America's poor."

The U.S. trading partners in the DR-CAFTA region, with a population of
43 million, are the poorest countries in the hemisphere and have highly
unequal distributions of income and wealth. They depend heavily on
agriculture for the livelihood of significant portions of their
populations. These countries are ravaged by curable diseases due to
poverty and inadequate health-care coverage. They sorely lack public
infrastructure and, in several cases, are highly indebted.

"Those who stand to lose in the DR-CAFTA are the ones who are already
disadvantaged. Although fair trade rules and practices have the
potential to lift millions of people out of poverty, DR-CAFTA will only
plunge the region=92s poor into deeper poverty," continued Weinberg.
"Instead of establishing fair and equitable rules for trade, the
agreement will institutionalize an uneven playing field."

The regional trade agreement will require these developing countries to
open their markets to dumping of U.S. rice and other commodities and
forbid use of adequate safeguards to ensure food and livelihood security
and rural development. The agreement also blatantly ignores the fact
that U.S. farmers receive extensive subsidies and domestic supports,
estimated to be around $24 billion this year alone. DR-CAFTA imposes
strict new rules that extend the monopoly held by brand-name
pharmaceuticals, which will limit generic competition and reduce access
to affordable medicines in the future. The trade agreement also provides
special rights and privileges to foreign investors that can create major
new liabilities to governments and undermine efforts to protect public
health, the environment, and workplace safety.

"No matter the spin, DR-CAFTA is a bad deal for millions of farmers,
workers, and consumers in Central America and the Dominican Republic,"
added Weinberg. "The U.S. should do better if it wants to promote peace,
political and economic security in this region that has struggled with
poverty and inequality, and the resulting instability, for so long."

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EDITOR'S NOTE: Oxfam's written testimony before the U.S. House Committee
on Ways and Means on the Implementation of the DR-CAFTA can be found on
Oxfam's Web site at:
http://www.oxfamamerica.org/newsandpublications/publications/research_repor=
ts/research_paper.2005-04-19.0062107283.