From a speech today by USTR Ron Kirk:
So today I am announcing that the Obama Administration will file a case against Guatemala under our trade agreement with Central America and the Dominican Republic, for apparent violations of obligations on labor rights.
This is the first labor case the United States has ever brought against a trade agreement partner.
With this case, we are sending a strong message that our trading partners must protect their own workers, that the Obama Administration will not tolerate labor violations that place U.S. workers at a disadvantage, and that we are prepared to enforce the full spectrum of American trade rights from labor to the environment.
More details as they emerge.
ADDED: Here's the CAFTA-DR consultations request.
And here's the press release: http://www.ustr.gov/about-us/press-office/press-releases/2010/july/united-states-trade-representative-kirk-announces-lab. A key excerpt:
What Concerns Does the United States Have With Guatemala’s Compliance With its Obligations under Chapter 16 (Labor) of the CAFTA-DR?
In April 2008 the AFL-CIO and six Guatemalan unions filed a public submission under the CAFTA-DR alleging that the Guatemalan government is failing to effectively enforce its labor law. Since then the U.S. Government has conducted an extensive examination of Guatemala’s compliance with its obligations under the Labor Chapter of the CAFTA-DR. This examination has included (1) a careful review of Guatemala’s labor laws, (2) extensive collection of factual evidence, and (3) a careful analysis of Guatemala’s obligations under Article 16.2.1(a). Based on this examination, it appears that the Government of Guatemala is failing to meet its obligations under Article 16.2.1(a), with respect to effective enforcement of Guatemalan labor laws related to the right of association, the right to organize and bargain collectively, and acceptable conditions of work. For example, we have identified a significant number of failures to enforce Guatemalan labor law, constituting a sustained or recurring course of action or inaction, including:
1) Ministry of Labor failures to investigate alleged labor law violations;
2) Ministry of Labor failures to take enforcement action once the Ministry has identified a labor law violation; and
3) Court failures to enforce Labor Court orders in cases involving labor law violations.
The United States also has grave concerns about the problem of labor-related violence in Guatemala, which is serious and apparently deteriorating. The United States is seriously concerned about the Government of Guatemala’s response to the use and threats of violence that appear to be related to the exercise or attempted exercise of labor rights in Guatemala, including the right of association and the right to organize and bargain collectively. The concerns of the United States include apparent failures by the Government of Guatemala to adequately protect those threatened with violence and apparent failures to adequately investigate and prosecute such crimes. Our request for consultations expresses our grave concerns about this problem and indicates that we intend to examine and take this issue up with the Government of Guatemala in the near future.
