If you can't beat 'em, scare 'em: How the Bush administration helped get CAFTA passsed in Costa Rica

author : Marco Rosaire Rossi topic : CAFTA

by Marco Rosaire Rossi

Spirits were high at the “NO!” Campaign’s demonstration in San José, Costa Rica, one week before the Oct. 7 vote on whether to approve the controversial trade agreement cafta. There was no reason for them not to be: over 100,000 people had attended the demonstration, several polls had consistently shown that the “NO!” Campaign was going to squeak by (with one poll showing that they were ahead by 12%), and the government of President Óscar Arias had just humiliated itself in a recent leaked memorandum scandal. The contents of the memo indicated that the government was going to lose the “Sí” vote. It read: “The coalition against us is formidable: universities, the church, unions, environmental groups, etc. On the other side, in favor of cafta, there is only the government and—half-heartedly—the main businessmen.” To a lot of people, it seemed like a vote “No” would likely succeed.

But come referendum day, the results were different. Instead of the “No” pulling ahead of the “Sí,” the “Sí” pulled ahead of the “No”—with a 51.5 to 48.5 split. On October 22, the results were finalized, and cafta can now begin the process of becoming part of Costa Rican law.

The tables were turned on the “NO!” Campaign through a set of lies and misleading statements, led by the Bush administration, intended to convince those undecided on cafta that if they didn’t vote “No,” Costa Rica would lose previous trade deals and people would lose their jobs.

Before the referendum, the national media continually broadcasted statements by US Trade Representative Susan Schwab, in which she denied the possibility of renegotiating cafta if Costa Rica voted “No,” and implied the United States would cancel Costa Rica access to US markets through the Caribbean Basin Initiative. She wasn’t alone. Mark Langdale, the US Ambassador to Costa Rica, made similar comments. He also made an appearance at the Sardinmar Cannery—a company that threatened to move out of the country if cafta wasn’t signed—to promote cafta and free trade. The remarks were hogwash. Only a small portion of Costa Rica’s trade preferences would be up for consideration next year in Congress, and it is unlikely that the Democratic majority—a majority that had voted against cafta when it was before Congress—would refuse to renew the agreement based on a “No” vote.

But more than being hogwash, the comments were illegal. Congresswoman Linda Sanchez reminded Secretary of State Condoleezza Rice—the Ambassador’s and the Trade Representative’s boss—that such statements amounted to interfering in Costa Rica’s domestic political system and violated US, Costa Rican, and international laws. In an attempt to clear the matter up further, Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid wrote a formal letter clearly stating that cafta would not affect Costa Rica’s status under the Caribbean Basin Initiative, and Senator Bernie Sanders and Representative Mike Michaud travelled to Costa Rica personally to tell the people that no punitive actions would be taken based of the direction of the vote.

Despite these efforts though, the damage was already done. In the final week before the vote, the “SÍ!” Campaign seized upon the fibs and used them to create a scenario of complete economic collapse in the country unless cafta was signed. In that last week, the lie of economic collapse became gospel. This included the massive use of “robo-calls” sent via cell phone and text message. People would pick up their phones and find a pre-recorded message that said: “I thought the fta (free trade) didn’t affect me. But Ana is going to lose her job. Let’s help her. Vote yes.” Flower exporting firms told workers to not bother showing up for work on Monday if the vote was “No.” The implication was that a “No” vote would mean business would have to shutdown and move someplace else.

The irony of all this rhetoric is that if economic collapse is to happen in Costa Rica, it is more likely to occur with cafta than without it. Under cafta, the country will be forced to open public businesses—like telecommunications and health care—to private investment. Agriculture and service sectors will be forced to compete with foreign companies that pay workers a lot less, and the lack of tariffs will discourage economic growth. Not to mention the problems with the rich getting richer, the poor getting poorer, and corporations having greater influence over the Costa Rican political system. All this could lead to a recipe for economic disaster.

Even though the vote is over, the opposition has vowed not to back down. They will continue to fight cafta’s implementation, and with good reason. Costa Rica is the richest country in Latin America. This feature has been put to the test with the passing of cafta. Unless there is a healthy political opposition to free trade, it risks losing not only its economic strength but its democratic character.

Olympia’s Marco Rosaire Rossi is a student in the Masters in International Law Program at the United Nations mandate school the University for Peace in San José, Costa Rica.