Free Trade Agreements Hinder Unrest, and Terror

Free Trade in the Americas is a major AJC concern because we firmly believe they impact the immediate and long-term well being of our Hemisphere, as well policies that will determine the quality and scope of relations between the United States and some of its closest partners. Pending free trade agreements with Colombia, Peru and Panama, to be voted on by the U.S. Congress, represent a singular opportunity to reinforce ties and bring to the fore our country’s ongoing commitment to the welfare of our neighbors. Failure to approve them would certainly undermine friendly governments and trading partners, not to mention American interests abroad.

AJC has actively and consistently supported free trade as a tool to generate sustained development and as a catalyst for long-term political and strategic cooperation between the United States and others. It advocated vigorously on behalf of the North American Free Trade Agreement (NAFTA) between the US, Canada and Mexico and more recently supported the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA) which has already increased trade flow, improving the lives of regional peoples, and significantly improving their collaboration with America.

Today, democratic governments in the region are pressured to deliver immediately on their promises or lose at the ballot (in the best of cases). Although this is part of a legitimate political process, current populist trends in the Americas, resulting from many years of frustration and broken promises, endanger the future of democracy. Proponents of populism use inflammatory rhetoric, filled with appealing but unrealistic commitments, to gain the vote of the majorities. Their position in power is then used to undermine democratic rule while on the way to establishing authoritarian regimes.

The governments of the Andean region, in particular, find themselves in a most delicate juncture. As they juggle with the scourges of drug trafficking, terrorism and the activity of vocal disenfranchised groups, they are attempting to stem violence within a democratic framework and contain the impact of Venezuelan President Hugo Chavez’s efforts to establish regimes more to his liking.

Colombia, Peru and Panama, staunch allies of the U.S., have built the success of their economic programs on the approval of bilateral FTA’s to increase trade and investment flow, generate jobs and promote prosperity. The failure to pass the upcoming FTA’s by Congress would make them appear ineffective. In addition, the U.S. would cease to be perceived as a reliable partner, and Chavez’s anti-American rhetoric could find more willing ears.

To boot, Latin America’s 450,000 Jews are feeling uneasy and vulnerable in the face of regional trends that present significant challenges. Pervasive poverty, deep social gaps, corruption and crime, as well as the marginalization of indigenous minorities, contribute to their perception. Other elements, however, have been added lately to this mix: the Chavez phenomenon and his strategic use of anti-Americanism and anti-Semitism to gain supporters both at home and abroad.

These agreements are not a panacea to resolving the panoply of challenges facing Latin American societies. Most of the latter require profound political and socio-cultural reforms spanning many years and involving not only governments but every sector of society. But Free Trade Agreements do help set standards and conditions that spur reform in many arenas.

Despite reports that absolute poverty has somewhat diminished in Latin America, the pervasive unequal distribution of wealth presents challenges to public security, peaceful coexistence, and endangers the practice of democracy. In this context, populism, ant-Semitism and terrorism find a fertile ground which puts the welfare of the Americas at high risk.

Dina Siegel Vann is director of AJC’s Latino and Latin American Institute.