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Trade Agreements and Human Rights. Why is trade a human rights issue?. Trade sanctions can (arguably) be a means of enforcing human rights Yet embargos often can contribute to violations of rights, too (e.g., Cuba)
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Why is trade a human rights issue? • Trade sanctions can (arguably) be a means of enforcing human rights • Yet embargos often can contribute to violations of rights, too (e.g., Cuba) • Trade and investment flows affect the economy, can provide solutions for human rights challenges • Structure of trade relations determines who benefits: how is trade conducted? • “Free” trade is a loaded term
Does free trade benefit human rights? Free trade = removal of tariffs and barriers and other “market distortions” In theory, this should produce: • Reduced prices • Wider consumer choices How does this mesh with human rights reality? • In practice, a lot of what gets called free trade is not • Bottom line: look beyond the label “free trade” to actual policies • Should everything be a commodity?
Trade Agreements in the Americas • NAFTA 1994 • US- Chile 2003 • CAFTA 2005 • US- Peru 2007 • Agreements with Colombia, Panama (yet to be ratified) • FTAA originally scheduled for January 1, 2005; stalled
Trade Agreements in the Americas Human rights concerns: • Lack of parity (e.g., agricultural subsidies) => dumping • Facilitate development model that creates jobs and economic growth, but at what cost? Who benefits? • Concerns about labor, environment • Establish institutions that circumvent democratic checks and balances • Investor-state arbitration (Chapter 11 of NAFTA, Chapter 10 of CAFTA)
Intellectual property • Why is this a human rights issue? • History of IP • WTO TRIPS Agreement 1994 • Doha Declaration 2001 • “TRIPS-plus provisions” in free trade agreements began after Doha
What are “TRIPS-plus” IP provisions? Extension of patents + Test data exclusivity _______________________________ = Longer periods of market monopoly
HIV/AIDS in CAFTA countries • Prior to CAFTA: 1 in 6 people who need antiretrovirals received them • Generic treatment: $230 per patient, per year • Brand-name drugs: $2,000-2,500 per patient, per year
Who opposes IP rights in FTA’s? • Amnesty International • Oxfam • Doctors without Borders • World Health Organization • 11 members of US Congress in January 2005 “The test data secrecy/market exclusivity rules will slow the introduction of generic drugs, decrease competition, raise prices, and hinder access to life-saving medicines in the DR-CAFTA countries.” • 13 members of US Congress in November 2005 • Ministers of health in 10 South American countries in May 2006
What do defenders of TRIPS-plus say to such critiques? USTR: “CAFTA expressly states that nothing in the agreement will affect a country’s ability to take measures necessary to protect public health.” Argument that CAFTA/AFTA increase access by encouraging major pharmaceuticals to register drugs in small markets