Multinational COSTCO hit by boycott 

Activists recently shared an important victory: The transnational company, COSTCO predicted reduced earnings after being shaken by a permanent boycott called by organizations in three countries. The boycott is permanent, approved by 147 NGOs and broadcast by One World, Ecoportal, Corpwatch, and CCCCH among others.

Cuernavaca, August, 2003 -- On Tuesday the 5th of August, the American multinational COSTCO, a wholesaler, announced that its earnings during the fourth trimester of the year would be inferior to what was expected "partly due to a war of prices declared by their rival Sam's Club". According to COSTCOs chief financial officer, Richard Galanti , the gains will locate within 46 to 48 cents by share.

It should be known that Merril Lynch regularly receives joint Frente Civico / CCCCH official press release and are therefore aware that Sinegal and Galanti are not completely truthful with shareholders and potential investors (1). Indeed, the same week that the executives of COSTCO contacted the press, the financial analysts in the US rejoiced of the increase of retail sales and the increase of production (2). This naïve tendency of withholding information by the CEO and Gallanti was more successful in other local circumstances such as the shareholders meeting January 31st when the CEO, panic turned the microphone off on protesters speaking out.

But the word about what is happening in Cuernavaca is out and the boycott could mean the ultimate end for the company that is indeed faced with many other difficulties such as strong competition, inefficient services, high costs of products and particular California worker demands.
 
The joint official press releases Frente Civico / CCCCH calling to boycott COSTCO is being sent to 1 300 000 potential consumers and investors of four continents and will appear published in hundreds of Web sites around the world. They have been relayed by great news agencies in Spanish, French and English language.
 
Cuernavaca has been the victim of an attack by the company which includes the destruction of important works of art, architectural treasures, and green areas in the city. In nearly 20 acres in the center of the city, the following has been destroyed or affected by Costco: 1,400 square meters of mural artwork from the XX century , An Olmec archeological site, a representative structure created by Félix Candela and nearly 2 million cubic meters of an ecosystem. This in order to make way for a 1200 car parking lot with two giant warehouses, a water treatment plant, cafeteria and an additional street.
 
In the light of this collective victory we are grateful to all the activists and the public in general participating in this action against an unethical American multinational. We, the Frente Civico pro Defensa del Casino de la Selva and the Canadian Committee to Combat Crimes Against Humanity reiterate our call to boycott COSTCO and suggest to all investors, in particular those of TIAA-CREF, the main retirement fund of the education sector, to withdraw their money from this option. We remind you that because of its flagrant violation of the law and lack of morals in general, the company is presently standing in financial quicksand and that it is dragging inexorably those who are not aware of the boycott.
 
We ask all NGOs to join our efforts, in particular we invite you to help us in the organization of an international forum to discuss the ways of penalizing economic crimes such as the one committed by Costco. The event is to take place in March of 2004 in the city of Cuernavaca, Mexico.  

Please send support to
frentecccch@voila.fr