Negotiating Trade Participation, Transparency, Representation, and the Mobilization of Resistance in Ecuador

Negotiating Trade: Participation, Transparency, Representation, and the Mobilization of Resistance in Ecuador by Andrea Marisa Samulon A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science (Natural Resources and Environment) in the University of Michigan December 2006 Thesis Committee: Professor Ivette Perfecto, Chair Abstract This thesis analyzes the Andean Free Trade Agreement, for which negotiations began in May 2004 between the United States, Colombia, Ecuador and Peru and proposes the need to thoroughly interrogate the negotiation process Based on in-depth interviews, primary source data, and participant observation, I make the assertion that it is urgent to consider the process by which the trade agreement is negotiated, before engaging in an ideological debate about its potential outcomes From the outset, the negotiation process of the Andean Free Trade Agreement (AFTA) has been contested by a broad range of social actors in Ecuador for its non-transparency, and inadequacy in facilitating the participation of civil society The Confederation of Indigenous Nationalities of Ecuador (CONAIE) has led the strongest opposition to the negotiation of the Andean Free Trade Agreement in Ecuador CONAIE, alongside campesino and civil society organizations insist that there have been no legitimate opportunities built into the process to voice their concerns for the way in which the negotiations are being transacted, let alone analyze or criticize specific provisions contained within the proposed agreement A broad cross-section of critics of the trade negotiation process have also called into question the capacity of the current government to adequately represent the majority The Ecuadorean government makes the claim that they are dedicated to transparency and broad participation of all members of society in the negotiations My research indicates that this negotiation further excludes Indigenous people and historically marginalized groups within Ecuador, yet has simultaneously catalyzed momentum to their struggle against neoliberalism and free trade ii Acknowledgements The gratitude that I owe spans far back in time, before the research for this project ever began Chance meetings, a multitude of experiences, and many different people are the foundation of where I am today, and the inspiration for my work Professor Steve Gliessamn at UC Santa Cruz is one of the most dedicated and talented teachers I have ever known My introduction to Agroecology by one of its foremost thinkers and doers changed my life forever, and my academic path Thank you In 1999, I went to Matagalpa, Nicaragua and had one of the more formative experiences of my life working with small-scale, resource poor coffee farmers It became clearer that struggles for land were directly linked to struggles for livelihood, and the local was inextricably connected to the global I am touched forever by the friendship, love and lessons learned from the Blandon, Hererra, Escobar and Bravo families I am grateful for the opportunity to have conducted field work for my masters thesis My research in Ecuador was made possible by generous grants from the Rackham School of Graduate Studies at University of Michigan as well as the School of Natural Resources and Environment at University of Michigan Several key people facilitated my research while in Ecuador The talented and bold journalist, Harrie Derks, is a generous and kind friend who gave me the opportunity to accompany him on some important interviews in Quito, including the meeting of the Andean Community His entire family welcomed me into their home as if I was one of their own Edwar Vargas Araujo, a human rights attorney for the Indigenous movement in Ecuador was incredibly generous with his time and knowledge He patiently provided me important background and analysis about free trade, human rights, and the Indigenous movement in Ecuador I am thankful to Edwar and Julio for inviting me and being my guides to the Cayambe and Cangahua Inti Raymi festivals In summer 2005, I received the shocking and sad news that Jairo Rolong was killed in a tragic bus accident in the north of Ecuador Without Jairo, and our serendipitous meeting in Quito, this thesis would be incomplete He gave me trust and invited me to an important meeting of the Continental Campaign Against ALCA, and facilitated my meeting leaders of the Confederation of Indigenous Nationalities of Ecuador Jairo was a journalist, and media and communications specialist for many popular organizations in Ecuador, particular Ecuarunari iii Thank you to Dr Ivette Perfecto, my advisor at University of Michigan, for inviting me (a social scientist) into a lab that I was honored and proud to have been a part of For her support of my research, and vast knowledge of global food politics, trade, and Latin America, I am grateful I am most grateful for her incredible patience Finally, my entire family has provided me immeasurable love and guidance But, my mother and father’s unending support for my dreams, and aspirations, and the sacrifices they made to provide for their children, created the opportunities that I have today I know that my dreams are built upon your hard work iv Dedication To my four grandparents—heroes and survivors in every sense of the word Your inspiration guides me every day The struggle to create a just and equitable world proceeds forward from all corners of the earth Yet unnamed, and still taking shape, I dedicate this work to the ongoing process, and final outcome v Table of Contents Abstract p ii Acknowledgements p iii Dedication p v Chapter Introduction, Methods, and AFTA Timeline p Historical Background & Theoretical Framework p 19 The State in the Andean Free Trade Negotiations p 50 The Confederation of Indigenous Nationalities of Ecuador p 75 Association of Cattle Ranchers of the Highlands and Amazon p 90 Small Farmers in Ecuador p 100 Appendix A p 125 Conclusion p.127 Bibliography p 133 vi Chapter 1: Introduction, Methods, and AFTA Timeline I went to Ecuador in May of 2004 expecting to carry out research that would help me understand the potential impacts of a free trade agreement on the country’s agrarian sector, the indigenous population, and the social resistance that had manifested in the face of recently initiated negotiations for the Andean Free Trade Agreement (AFTA) After a short time, and a number of conversations it became clear that I would not be investigating the pending trade agreement’s hypothetical impacts The looming and immediate concern among those I spoke with in Ecuador, including University professors, small scale farmers, activists, average citizens, and people affiliated with the Confederation of Indigenous Nationalities of Ecuador (CONAIE), was not the future impact of the trade agreement, but rather the way in which it was being negotiated In other words, people expressed that it was the very process of the negotiation that needed to be interrogated, assessed, and questioned A combination of factors, including closed-door negotiations, inadequate representation of all sectors of Ecuadorian society at the negotiating table, and the assertion by the United States trade representative that all rounds of the negotiations must be kept secret, had coalesced into a process that many citizens in Ecuador did not deem legitimate For three months in the summer of 2004, between May and August, I did field work aimed at documenting various social actors’ perspectives on the Andean Free Trade Agreement, including who they thought might benefit and who might not from such an agreement I was also interested in how much people knew about the negotiations, and the pending outcomes The government described this agreement as the only right step for Ecuador, yet how much did the average person know about it? I learned very quickly that there was a general awareness of the AFTA, but its specific content was secret, being kept private by those sitting at the negotiating table I began to wonder what the connection was between the general exclusion of the public from the negotiations and the social resistance that had formed against AFTA in Ecuador; who comprised this movement in opposition to it? And, how much did the perception of secrecy motivate the resistance? Research Methods: To begin addressing these questions, particularly how people in Ecuador interpreted the free trade agreement and negotiations, I conducted fifty-four interviews with actors representing a broad cross-section of Ecuadorean society Between May and August of 2004, I completed a series of 12 structured open-ended interviews, co-led a discussion group with an adult education teacher and administered a survey to a group of 22 self identified, Indigenous small-scale farmers aimed at understanding their views on free trade and agriculture, and interviewed 20 random people during a street protest I also participated in several conferences and workshops at Universidad Andina Simon Bolivar, and at the Facultad Latinoamericana de Ciencias Sociales (FLACSO), in Quito, primarily on the topic of the Andean Free Trade Agreement My interviews were mostly conducted in Quito, but the discussion group and survey of the Indigenous farmers took place in Cayambe, a small town approximately three hours north of Quito in the highlands surrounded by flower plantations and farms I chose to focus large sections of my interviews on the relationship between the free trade agreement, the agrarian sector, and the Indigenous population in Ecuador Therefore, I made an effort to speak with, and obtain interviews from people who had some type of expert knowledge in agrarian economy, an affiliation with farmers’ organizations and Indigenous organizations, or were farmers themselves Many of my contacts were obtained through the snowball effect, whereby I met one person, who put me in contact with another person, and so on One possible concern is that this method limits the breadth of perspectives that I am able to capture in my research However, according to H Russell Bernard, “A critical issue is the degree to which the captured sample is representative of the universe This is difficult if the universe is unknown, but Frank and Snidjers (1994) have shown the method is excellent for identifying hidden populations and comparing them to larger ones (Bernard 1998: 705706).” I also conducted interviews with a member of the Ecuadorean free trade negotiating team, as well as the U.S embassy economic attaché in Quito, in order to provide the basis for a comparison of views with those that are not directly involved in promoting the trade agreement In addition to seeking out interviews with people who could provide me a certain level of academic expertise related to the agrarian sector in Ecuador, human rights issues as they pertain to trade negotiations, or recent patterns of rural to urban migration, I also wanted to speak with people involved in some of the social movements that have been actively opposing the Tratado de Libre Comercio.1 One of the strongest organizations opposing the free trade agreement in Ecuador is the Confederation of Indigenous Nationalities of Ecuador (CONAIE), an umbrella group representing the various Indigenous nationalities throughout the country I was introduced to then president of CONAIE, Leonidas Iza, with whom I conducted a semi-structured, open-ended interview Campesino organizations in Ecuador have also been vocal opponents of the free trade negotiations, due to serious concerns regarding the impacts of these policies on the livelihoods of small-scale farmers CONAIE also shares this concern given the high percentage of the Indigenous population that derives its livelihood from some type of agricultural production To get a better understanding of the perspective of non-indigenous small farmers I conducted semi-structured, open-ended interviews with several leaders of the national farmers organization Confederación Unica Nacional de Afiliados al Seguro Social Campesino (CONFEUNASSC) Clearly, not all farmers in Ecuador are small farmers represented by CONFEUNASSC To get the perspectives of medium and larger farmers and ranchers I contacted the Associación de Ganaderos de la Sierra y Oriente (AGSO), the national cattle ranchers’ organization The cattle ranchers association historically represents, and has allegiance to medium and large-scale producers Thus, they represent a different class strata, with different class interests and productive capacity, as those that are considered small-scale or subsistence producers I was told by a professor of agrarian economy at Universidad Andina Simon Bolivar that they had come out with a strong view on the trade negotiations— neither against nor completely in favor It was important for me to understand the views of this organization in order to further understand the subtleties involved in the relationship between class status, access to power and resources, and perspectives on the trade negotiations Free Trade Agreement (FTA) is translated into Tratado de Libre Comercio (TLC) in Spanish I use them interchangeable throughout, as well as the abbreviated forms, FTA and TLC Conclusion When the World Trade Organization ministerial collapsed in Cancun in September of 2003, then U.S trade minister, Robert Zoellick, stated in a financial times article that the breakdown was caused by the “won’t do” countries led by Brazil and India The U.S would now pursue free trade deals with “can do” countries He also said: “The rhetoric of ‘won’t do’ overwhelmed the concerted efforts of the ‘can do.’ ‘Won’t do’ led to the impasse.” Since Cancun, the United States has actively pursued bilateral and regional trade agreements such as the Andean Free Trade Agreement with Colombia, Ecuador, and Peru These are the “can do” countries, according to the U.S.—willing to engage in a type of negotiation process that won’t lead to the “impasse” of the notorious Cancun ministerial Committing to trade negotiation with the United States as a “can do” country, therefore, brings with it a set of requirements, or rules of engagement, so to speak These rules of engagement have laid the foundation for the current conflict over the process by which the Andean Free Trade Agreement is being negotiated The exclusion of the general public from the negotiations is inherent in these rules By virtue of negotiating texts being classified by the United States, the public is denied access to them, or from even minimal participation in the negotiations; official negotiators from all countries have to sign privacy waivers, insuring that the texts and the substance of the negotiations are kept secret The failure of accountability to the public is a byproduct of the negotiation process, and democratic institutions are inherently deteriorated as governments become less responsive to its citizens In Ecuador, groups like the Confederation of Indigenous Nationalities of Ecuador (CONAIE) and the Confederación Nacional de Afiliados al Seguro Social Campesino (CONFEUNASSC), and individuals that I spoke with linked their exclusion from the negotiation process to a failure of the government to represent them and be accountable to civil society This failure of the government in Ecuador to represent the voters’ interests was illustrated very clearly under the presidency of Lucio Gutiérrez, and came to a dramatic conclusion in April of 2005 when he was forced out of office by massive citizen protests Prior to entering office, Gutiérrez promised that he would not engage or sign any free trade agreements He soon reversed this decision, 126 127 alienating masses of his support base, and betraying those who he purported to represent The protesters who gathered outside the presidential palace in the days prior to his ouster had multiple grievances against the president; however, many chanted and held signs that read “No al TLC” While I highlight process as a significant terrain of conflict in the Andean Free Trade Agreement negotiations, I not intend to imply or suggest that if those parties that are currently excluded from participating could somehow be integrated they would all endorse the agreement In fact, after participating in the cuarto de al lado, the Confederación Nacional de Afiliados al Seguro Social Campesino (CONFEUNASSC) report clearly indicated: “This participation does not mean that we uphold this process, and worse that we agree with the results (CONFEUNASSC 2004).” Similarly, after discussing the flawed negotiation process, particularly the lack of consultation with the public, former president of the Confederation of Indigenous Nationalities of Ecuador (CONAIE), Leonidas Iza, made it clear that there were other structural issues that deemed the agreement unacceptable to the organization: CONAIE has a firm position, because we see that we will lose our agriculture, our ranching, our sovereignty—we will definitely lose everything They talk about patenting, for example, of bringing in transgenic seeds under the pretext that this will provide food security We have seeds Unfortunately, recent government policies have not provided anything to the agricultural sector There is no credit, there is no commercialization, there is no productive infrastructure, there is nothing In this sense, we really see total damage That is why we have absolutely and definitively said, and we continue to say no to the Tratado de Libre Comercio (Leonidas Iza 2004) It is clear that CONFEUNASSC and CONAIE, the Association of Cattle Ranchers of the Highlands and Amazon (AGSO), and multiple other groups within Ecuador have concerns about both process and outcome of the Andean Free Trade Agreement Of immediate concern, however, is that which is most evident in the present The agreement has yet to be signed or ratified, or put into effect Hence, a discussion about its consequences relies heavily on projection, and educated estimation (often based on the highly disputed outcomes of other trade agreements) The process by which the entire agreement is being negotiated, 128 deliberated, and determined is of greater relevance; the process is tangible, and germane in the present Finally, it is essential to scrutinize process because outcomes are highly dependent on it A flawed, or highly contested, process diminishes the chances of the final agreement being well received by the general public when it is implemented A government may choose to impose its will on the public, by instituting policies that the majority of the public is opposed to However, in this circumstance, the quality of democracy and the degree of representation is of immediate concern As Charles Tilly (1995) describes: “Democracy combines broad and relatively equal citizenship with a) binding consultation of citizens in regard to state personnel as well as b) protection of citizens from arbitrary state action (Tilly 1995: 370, cited in Grossman 2002: 142).” Many of the groups and individuals in Ecuador that are opposed to the government’s action, with respect to pursuing a free trade agreement, not feel protected from what they consider arbitrary state action In Ecuador, the conflict over the negotiation process traverses issues of participation and citizenship, as well as democracy, representation, and distribution of benefits For many, particularly many Indigenous Ecuadoreans (who comprise nearly 35% of the country’s total population) the Tratado de Libre Comercio represents another imposition, and attack on their sovereignty Just as nearly four decades of ongoing petroleum exploitation in the Ecuadorean Amazon has had a disproportionately negative affect on Indigenous people, as a result of government deals from which they were excluded, the Tratado de Libre Comercio elicits apprehensions of equally devastating outcomes Because the government has only “raised expectations and discourses,” according to Edwar Vargas Araujo without being able to provide any real evidence of benefits from the agreement and for whom, a wide cross-section of civil society has questioned the very process by which the agreement is being negotiated As my research demonstrates, to different degrees, various groups and individuals within Ecuador are concerned about process These actors each interact and articulate their relationship to the negotiation process in unique ways Some, like the Confederation of Indigenous Nationalities of Ecuador (CONAIE) and the Confederación Nacional de Afiliados al Seguro Social Campesino (CONFEUNASSC), adamantly question the process and make this a central grievance in their public statements about the free trade agreement CONAIE has waged a strong campaign against the Tratado de Libre Comercio in Ecuador, consistently enumerating the 129 procedural inadequacies of the negotiation For CONAIE, the process is flawed by virtue of being closed to the public, non-transparent, led by a non-representative group of negotiators, and because it has proceeded without the approval or awareness of the majority of Ecuadoreans Other groups, like the Association of Cattle Ranchers of the Highlands and Amazon (AGSO) have taken a more nuanced position on the free trade agreement in general, and the few statements they have made about process reflect their investment and hope that the final agreement will yield the results that they want AGSO’s constituents are historically well-represented, medium to large-scale cattle ranchers, who have political and economic power within Ecuador This history of being represented, rather than marginalized within society, may play a role in the organization’s seeming lack of identification with being excluded from the process AGSO’s procedural concern, in fact, is that the Ecuadorean government is not in control of the negotiations, but is subjugated by the interests of transnational corporations This concern reveals their faith in their government to represent their interests—if only the government had the necessary power within the negotiations in order to so The Ecuadorean government has developed a robust discourse on the negotiation process Specifically, they have articulated an official position which speaks to the importance of facilitating the participation of “all members of civil society” in the negotiations The government explains, via its official Tratado de Libre Comercio website, the various actions it has taken in order to ensure the participation and representation of its citizens in the agreement What is revealed is a fundamental discord between the government’s definition of participation, and the way other actors within Ecuador understand and interpret it The government is proud that it has facilitated workshops in various places throughout the country, in order to disseminate the information about the agreement to the general public Likewise, they indicate that there is a very useful website with information about the agreement—also a tool to facilitate participation The government workshops and website not, however, satisfy the public’s legitimate need for participation, because they serve to disseminate one-sided information, rather than to engender dialogue, discussion, or debate Moreover, the workshops and website not reach the majority of Ecuadoreans If one only listens to current U.S government discourse, or even that of the Ecuadorean government, the pursuit of free trade and increasingly liberalized markets may 130 seem inevitable But, as evidenced in Ecuador, a loud and organized civil society is questioning, not only this supposed inevitability of free trade, but the assumption that they can be excluded from a process with such profound consequence The demands for a popular referendum, and the efforts to collect signatures to oblige the government to carry out the consultation process, has unified a broad cross section of social movement, students, religious, and labor groups across Ecuador Beyond unifying these groups, it presents the only constitutionally guaranteed alternative to the exclusion of the public from having a say in the negotiations Despite the confidence of the groups involved that they will be able to obtain the necessary 700,000 signatures, it is yet to be seen whether the government will oblige their demands, or continue negotiating a espaldas (behind the backs of the people) It is in the best interest of the Ecuadorean government to uphold the constitution and facilitate a popular consultation, because social movement groups, including the politically relevant and powerful, Confederation of Indigenous Nationalities of Ecuador (CONAIE) are poised to overthrow every government until they listen to the demands of the public, and actively work to reverse an ongoing history of exclusion On August 8, 2005, CONAIE sent out a press release calling for all the social organizations, and popular movements to participate in a Movilización General (general mobilization), demanding that the government carry out a popular consultation CONAIE has the power, as has been demonstrated throughout the last fifteen years, to mobilize the country across social, class and ethnic lines, and even to overthrow presidents They are preparing to it again if necessary According to their press release: CONAIE is calling upon all Ecuadoreans, on the popular assemblies, the social movements, environmentalists, human rights organizers, workers organizations, campesinos, students, trade unions, and NGO’s to come together in order to decide upon actions for struggle against the manipulations of the groups of political and economic power, who are subordinated by the Empire (CONAIE August 8, 2005) The CONAIE press release calls for a popular consultation and insists: “This mandate is fulfilled or QUE SE VAYAN TODOS.” Que se vayan todos (everyone should leave) is a reference to the political class in power It is a way of expressing that all those in power are 131 connected to the decisions being made, and until the decisions reflect the will of the majority, they should all be gone A free trade agenda and policy developed amidst highly contentious social, political, and cultural conflicts, such as those in Ecuador, will not produce democracy and equality 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