From: Nicaragua Network <[EMAIL PROTECTED]> [The information for this alert was provided on July 9, 1997, by the U.S./Guatemala Labor Education Project, P.O. Box 268-290, Chicago, IL 60626; Tel: (773) 262-6502; e-mail: [EMAIL PROTECTED]] URGENT!!! PLEASE ACT ON THIS ALERT: House Tax Bill Contains $200 Million in New Benefits For Central American Maquiladora Businesses; No New Benefits for Maquila Workers The House of Representatives is quietly trying to extend NAFTA trade benefits to the Central American and Caribbean apparel-for-export sector. The so-called Caribbean Basin Initiative (CBI) parity measure, originally introduced by Rep. Phil Crane, R-IL, is part of the omnibus reconciliation tax bill that has already passed the House. The Crane measure would expand the long-standing Caribbean Basin Initiative duty-free trade program to phase in NAFTA-equivalent trade benefits for apparel, shoes and petroleum, commodities that are currently excluded from the CBI trade program. The Senate version of the reconciliation bill does not contain a CBI-parity provision. Central American governments and business leaders have lobbied for three years to obtain the same trade benefits provided to Mexico under NAFTA, arguing that Mexico has an unfair trade advantage that has harmed the Central American maquiladora sector. However, the Central American maquiladora sector has continued to grow, despite Mexico's lower duties. Since NAFTA was passed, CBI countries have increased their total share of U.S. imports of apparel from 19% to 23%. The Crane bill does nothing to ensure that Central American workers obtain a share of the new trade benefits. While the version of the Crane measure in the reconciliation bill apparently does not remove current provisions that link CBI benefits to progress on respecting worker rights, these provisions have proven to be inadequate. Central American trade unions and those in the U.S. who support Central American workers believe that the extension of new trade benefits to the Central American maquiladora sector should be conditioned on measures to ensure that the benefits be shared by Central American workers through strong worker rights provisions. The attempt to sneak the controversial Crane measure through the reconciliation bill represents an attack on both Central American and U.S. workers and worker rights advocates, depriving fair trade supporters an opportunity to engage in efforts to strengthen to worker rights provisions of U.S. trade laws and build a trading system that is not based on the exploitation of Third World workers who are denied their basic rights. The House's action is a back-door attempt to ensure that worker rights advocates have no opportunity to push for stronger worker rights provisions. The drum beat of media coverage of worker rights violations in the Central American maquiladora sector no doubt has CBI-parity supporters concerned about having an honest and public debate on U.S. trade-worker rights policy vis-a-vis the Central American maquiladora sector. In a clear indication of efforts to side-step a public debate, the bill authorizes the new trade benefits for only one year, thereby keeping down costs represented by the loss of duties that would no longer be imposed. However, the strategy of the provision's sponsors is to get the nose of the camel under the tent, knowing that once the benefits are provided for one year they will be extended in future years. The five- year cost of CBI-parity would be $1 billion. Senators Patrick Moynihan, Trent Lott and William Roth have been named to represent the Senate in a conference committee with House counterparts on the section of the reconciliation bill that contains CBI- parity. TIMELINE: IMMEDIATE. This bill is going to conference July 10 and observers expect a conference (i.e. compromise) version of the bill to be completed as early as the middle of the week of July 14. ACTION: Contact your U.S. senators immediately. Ask them to contact Senators Moynihan, Lott and Roth and urge that they remove CBI- parity from the reconciliation bill. For more information, contact Steve Coats at the U.S./Guatemala Labor Education Project; Tel: 773-262-6502; e-mail: [EMAIL PROTECTED] CAMPAIGN FOR LABOR RIGHTS memberships: Send $35.00 to CLR, 1247 "E" Street SE, Washington, DC 20003. 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