GAO: "Free Trade" Not Improving Environment, Labor

By Marcy Wheeler

Created 08/10/2009 - 9:28pm

Max Baucus asked GAO to look at [1] four Free Trade Agreements--Jordan, Singapore, Chile, and Morocco--to measure the economic, environmental, and labor benefits of the FTA. And while the report touts Jordan's 400-person environmental law enforcement force, the reality is that our trade partners are making little progress in environmental and labor issues.

FTA negotiations spurred some labor reforms in each of the selected partners, according to U.S. and partner officials, but progress has been uneven and U.S. engagement minimal. An example cited was Morocco’s enactment of a longstalled overhaul of its labor code. However, partners reported that enforcement of labor laws continues to be a challenge, and some significant labor abuses have emerged. In the FTAs we examined, Labor provided minimal oversight and did not use information it had on partner weaknesses to establish remedial plans or work with partners on improvement.

The selected partners have improved their environmental laws and made other progress, such as establishment of an environmental ministry and a 400- strong environmental law enforcement force in Jordan, according to U.S. and foreign officials. However, partner officials report that enforcement remains a challenge, and U.S. assistance has been limited. Elements needed for assuring partner progress remain absent. Notably, USTR’s lack of compliance plans and sporadic monitoring, State’s lax management of environmental projects, and U.S. agencies’ inaction to translate environmental commitments into reliable funding all limited efforts to promote progress.