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DESPITE THE EFFORT OF THE ELCA AND OTHERS CAFTA PASSES

The House approved the Central American Free Trade Agreement (CAFTA) by a very narrow vote.  The Senate approved the bill last month.

Opponents to CAFTA are concerned that the bill will allow companies to "outsource" jobs to impoverished people in Central America without providing a living wage or job safety.  Many people in Central America are so impoverished they are willing to work for as little as $2.00 or $2.50 per day in jobs that require long hours without breaks.  Congress rejected proposals to modify CAFTA to include such protections.  CAFTA creates a climate of temptation for businesses to move jobs from the United States where they must provide minimum wages and job safety to Central America where they can produce the same products for a lot less greatly increasing their profits.

Such practices are contrary to the teachings of Christ and the church (see the ELCA's Social Statement on Sufficient and Sustainable Livelihood for All at www.elca.org/socialstatements/economiclife). 

Please raise up these concerns in your congregations and in prayer and encourage people of faith to evaluate the outcomes of CAFTA as it is implemented to determine whether it indeed is good and faithful policy or whether it creates a climate ripe for abuse. 

ENERGY BILL A HUGE DISAPPOINTMENT

While there were some incentives to better Care for Creation in the recent Energy Bill approved by Congress and sent to the President by offering tax breaks for companies promoting and producing alternative sources of energy, the bill falls far short of meeting the standards of the ELCA's Social Statement on Caring for Creation.  While the bill includes some incentives for alternative energy sources, most of the $14.5 billion in tax breaks approved by the bill will go to producers of and users of oil, natural gas and coal.  The bill does benefit farmers by creating incentives for the use of ethanol and bio-diesel.  We believe we can do better and that we need to continue pressing Congress to Care for Creation by promoting alternative energy sources.  Following are some highlights of the bill (from the Washington Post):

Highlights of the energy bill:

_ Tax breaks of $14.5 billion over 10 years for energy companies, renewable energy sources and promotion of efficiency.

   

_ Requirement for refiners to use 7.5 billion gallons of ethanol annually by 2012, double current production.

_ Extension of daylight saving time by a month.

_ New efficiency standards for commercial appliances, from air conditioners to refrigerators.

_ Requirement for utilities to meet federal reliability standards for the electric transmission grid, hoping to avoid blackouts such as the one in the summer of 2003.

_ Easing the way for more imports of liquefied natural gas by giving federal regulators final say over import terminals.

_ $1 billion for coastal environmental management in states where there is offshore oil production.

_ Loan guarantees and other subsidies for clean energy technologies and new nuclear reactors.

_ A $1.8 billion program to promote clean coal research and development.

_ Requirement for an inventory of offshore oil and gas resources, including areas now off limits to drilling.