UNLEVEL PLAYING FIELD

Why Colombia's Drug Trade Is A Free-Trade Issue

Free trade accords tend to conjure images of business executives
jetting off to negotiate manufacturing-plant construction and
import-export deals. That's far from the reality of the
U.S.-Colombian accord, which President Bush has signed but a
skeptical Congress has yet to ratify.

President Alvaro Uribe's discussion topics in Washington last week,
combined with a new lawsuit against Chiquita Brands International,
underscore the problems Colombia still confronts as one of the
world's most dangerous, albeit lucrative, business venues. These
problems cannot be masked by the niceties of free-trade accords or
the impressive results of Mr. Uribe's efforts to restore order and
foment an economic boom.

The drug-crop menace, which helped turn guerrilla and paramilitary
groups into billion-dollar enterprises, appears to be getting worse
rather than better. Congress wants to know why it should continue
allocating billions to drug-war programs with questionable results.

This intersects with commerce when American companies try to do
business in Colombia, only to be confronted with threats and demands
for "protection" payments.

Chiquita made the mistake of paying Colombian paramilitary terrorists
to protect its banana plantations from 1997 to 2004. The company now
faces a $25 million fine and a lawsuit from 144 families who claim
Chiquita's hired thugs killed their relatives.

Chiquita got caught, but it was not alone. It's no secret that anyone
with major business operations in Colombia's hinterland, including
international oil firms, eventually must deal with kidnapping and
extortion threats.

That's a free-trade issue. Do Colombian businesses have to earmark
large portions of their budgets for expensive measures to protect
their facilities in this country? Of course not, which is why we feel
Colombia has yet to offer U.S. businesses the level playing field
that is required of any free-trade accord.

Mr. Uribe must understand that much work remains to be done before
Colombia wins our full confidence.