28 September 2006
U.S. Increases Support for Labor, Environment in Central America
Plans to commit $39.6 million in 2006 to enhance practices of CAFTA countries
Washington -- The United States will commit $39.6 million to enhance the labor and environmental protection practices of the Central America-Dominican Republic Free Trade (CAFTA-DR) countries to ensure that a broad spectrum within these societies benefits from the trade agreement, according to the State Department.
In a September 28 statement, State Department spokesman Sean McCormack announced the United States will fund both local and regional projects that have been identified in consultation with CAFTA-DR governments to ensure support for country-specific priorities.
Of the 2006 funding, $21 million will be devoted to labor issues, including support for programs to strengthen labor ministries by professionalizing labor inspectorates and to increase the efficiency of complaint handling within labor ministries. Funds also will be allocated to enhance the effective enforcement of existing labor laws by judicial systems in CAFTA-DR nations. Other funds devoted to the area of labor will be earmarked for eliminating gender and other types of workplace discrimination, supporting the development of a culture of compliance with labor laws, and reducing chemical-exposure risks for workers.
Of the remaining 2006 funds, $18.5 million will go to projects that seek to improve the implementation and enforcement of environmental laws, enhance biodiversity and conservation and promote market-based conservation such as sustainable tourism. These funds also will support programs to increase private-sector environmental performance and address specific CAFTA-DR environmental obligations.
The 2006 funds allocated to enhance the labor and environmental capacity of the CAFTA-DR countries complement initiatives already under way in these nations as a result of $19.84 million in U.S. support allocated in 2005. (See related article.)
The overall 2005-2006 U.S. commitment of nearly $60 million “will promote economic growth in the region and help ensure that a broad spectrum of the societies of member countries realize the benefits of free trade,” the State Department said in a September 28 fact sheet.
John Murphy, vice president for Western Hemisphere affairs at the U.S. Chamber of Commerce applauded the State Department announcement in a September 28 interview with the Washington File.
“This is certainly part of a winning strategy,” Murphy said. “The CAFTA-DR agreement creates the growth and jobs Central America needs while strengthening governments’ commitment to enforce their labor laws. Finally, the investment in capacity building announced today provides the funds needed for training and inspections to promote effective enforcement.”
Murphy concluded that “in the end, this is sure to bear fruit for Central American workers.”
Eric Farnsworth, vice president of the Council of the Americas, a business organization, said that the State Department’s commitment to building the capacity of CAFTA-DR countries in the areas of labor and the environment reflect the United States’ comprehensive commitment to Central America and, more broadly, to these two important issues.
“This announcement is proof of an ongoing commitment to the Central American nations and the Dominican Republic, and is fully consistent with those who have argued for a comprehensive approach to the region,” he said. “This is real money, going for real programs, which we anticipate it will generate real results in these target areas.”
The text of the press statement is available on the State Department Web site.
For additional information on the trade agreement, see Central America Free Trade Agreement-Dominican Republic.
(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
