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Cato Daily Dispatch for December 12, 2002

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(Links to outside sources were active as of the date of this dispatch; however, not all news sources maintain links to current stories indefinitely. Some links also may require registration.)

President Bush Approves Smallpox Vaccination Plans

President Bush approved plans to make the smallpox vaccine available to all Americans, starting with military and health workers, who would be the line of first defense in a smallpox outbreak.

The program will be announced Friday and doses are expected to become available in January, said senior administration officials on Wednesday. According to the Associated Press, "the shots will be mandatory for about 500,000 military personnel and recommended for another half-million who work in hospital emergency rooms and on special smallpox response teams."

The Cato Institute's Charles Peña, senior defense policy analyst, issued the following statement in reaction to President Bush's decision: "By making the smallpox vaccine available to the public on a voluntary basis, President Bush has affirmed a policy that acknowledges the principle that the United States is a free society that values individual life and liberty. He has fulfilled the paramount responsibility of government, which is to protect its citizenry. The best protection against a possible attack using the deadly smallpox virus is a vaccinated population.

"Even a partially vaccinated population (polls indicate that 50-60 percent of the public would like to be vaccinated) creates a 'community immunity' effect that helps protect those who are unvaccinated by lowering the rate of transmission and affecting how rapidly the virus could spread. "It also makes it easier and greatly increases the chances of success for post-attack vaccination response. As a result, the chances of a successful smallpox attack would be lowered, which could have a deterrent effect and might even prevent such an attack."

Peña is the author or co-author of several articles and studies addressing the issue of smallpox vaccination and biological terrorism, including: Is Attacking Iraq Worth Risking Smallpox?; Continuing To Do Nothing About Smallpox; Give Americans the Choice to Take the Smallpox Vaccine; and Responding to the Threat of Smallpox Bioterrorism: An Ounce of Prevention Is Best Approach (Veronique de Rugy, co-author.)

Chile and U.S. Reach Historic Free Trade Agreement

Chile and U.S. Reach Historic Free Trade Agreement According to Reuters, "Chile and the United States reached a wide-ranging bilateral free trade agreement on Wednesday after two years of negotiations.

"The deal, which must be approved by legislatures in both countries, adds Chile to a short but growing list of U.S. free trade partners and is expected to help energize efforts to craft a 34-country Western Hemisphere free trade pact by 2005.

"'This is an excellent agreement that cuts tariffs and opens markets for American workers, farmers, investors and consumers,' U.S. Trade Representative Robert Zoellick said at a press conference to announce completion of the pact.

"Chilean Foreign Minister Soledad Alvear said the agreement would help Chile, already one of the strongest economies in Latin American, attract more foreign investment and expand its exports to the United States. "'Without a doubt, this will strengthen economic development and our growth strategy,' Alvear said.

"The agreement would eliminate tariffs on about 75 percent of the agricultural goods traded between the two countries within four years, but phase out duties and quotas on the most sensitive farm products over a period of 12 years."

The Cato Institute's José Piñera, distinguished senior fellow and former Secretary of Labor and Social Security of Chile, says that "a vast majority of Chileans benefit from free trade not just as consumers but also as owners of the productive assets of the economy through their retirement accounts. Free trade is good for the economy, and what's good for the economy is good for investors. Thus there is a virtuous cycle of trade liberalization that has so far thrived regardless of the political party in power." In "Chile Takes a Bold Step Toward Freer Trade", Piñera examines the nation's progress toward freer trade and the benefits it has provided its citizens.

Cato's Ian Vásquez, director of the Project on Global Economic Liberty, observed that "the United States can play a strategic role in promoting economic freedom, stability, and growth in Latin America -- something it has not done for nearly a decade. That means reversing the current policy characterized by bailouts, protectionist measures, and mixed messages to the region. It also means that Washington must end its destructive war on drugs in the region, which works at cross-purposes with important U.S. policy priorities."

European Union Enlargement Summit Begins in Denmark

The European Union meets today in Copenhagen, Denmark, for a two-day summit devoted to the issue of enlarging the union to include several Central and Eastern European nations. Radio Free Europe reports that "formal invitations... to join the union in 2004" will be extended.

"This moment will put the seal on a new shape for Europe nearly 60 years after the continent was shattered by war and subsequently divided by the Iron Curtain.

"Membership in the E.U. will impact every aspect of life in the accession countries. In economics, for instance, there will be a vast single market stretching from Tallinn on the Baltic to Nicosia on the Mediterranean. "In politics, there will be hundreds of new Eastern deputies in the European Parliament, all trying to prove their relevance to their home constituencies and to the union alike. And there is the army of technocrats and bureaucrats in Brussels, who will be making decisions directly affecting daily life in the East.

According to Marian Tupy, the Cato Institute's assistant director of the Project on Global Economic Liberty, E.U. and prospective E.U. members should approach enlargement with caution. "The E.U. enlargement will increase the volume of trade in Europe and contribute to economic growth throughout the continent," he says. "However, both trade and growth will continue to be sub-optimal as long as Brussels engages in central planning and excessive regulation, especially in the areas of agriculture, labor and fiscal policy. The new E.U. members should be aware of the costs associated with joining the Union and devote their energies to reforming it in the future."

In the Cato book, "Renaissance: The Rebirth of Liberty in the Heart of Europe", former Czech Finance Minister Václav Klaus lays out a vision for a post-Communist Europe, based on individual liberty and free markets. Nobel laureate James M. Buchanan said about the book: "These essays reflect the extension of ideas into the hands-on politics of Central Europe in transition. Well might other nations (including our own) wish for political leaders who understand the necessary foundations for a free society."

Christopher Kilmer, editor, ckilmer@cato.org