The revelation of the use of U.S. AID funds for export and investment promotion in Central America and the Caribbean created quite a stir in the fall of 1992. See, for example, French ( 1992), p. 6; Shorrock ( 1992), pp. 1A, 3A; De Courcy ( 1992), p. A8; Noble ( 1992), p. F25; Sheinkman ( 1992), p. F13; and Hayes ( 1992), p. F11.
Legislation was enacted by the U.S. Congress and signed by the president in October 1992 to place certain restrictions on the activities of the U.S. Agency for International Development and the Overseas Private Investment Corporation. Now prohibited were: (a) providing any financial incentives to a business enterprise currently located in the United States for the purpose of inducing such an enterprise to relocate outside the United States if such an incentive or inducement is likely to reduce employment in the U.S. enterprise; (b) providing assistance for the construction of EPZs in foreign countries unless the president certifies that such assistance is not likely to cause the loss of jobs in the United States; and (c) providing assistance for any project or activity that contributes to the violation of internationally recognized worker rights of workers in the recipient country, including any designated zone or area in that country. See the Export Enhancement Act of 1992 (P.L. 102-429) and the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (P.L. 102-391).
AFL-CIO. ( 1991a). "Statement by the AFL-CIO Executive Council on Worker Rights in Caribbean Export Processing Zones." Bal Harbour, FL, February 21.
_____. ( 1991b). "Worker Rights and the Generalized System of Preferences." Petition to the Office of the United States Trade Representative by the AFL-CIO, June.