US Tears Into Guatemala Labor Protections in New Legal Briefing

The Obama administration railed against Guatemalan labor rights violations in the agency’s first brief since re-opening a labor dispute under the Central American Free Trade Agreement. Despite agreeing to a bilateral Labor Action Plan that went into force in 2013, Guatemala is still failing to uphold CAFTA-mandated labor protections, namely freedom of association and worker’s conditions, in the shipping, apparel, steel and agriculture sectors, said the 70-page brief released on Nov. 3. The U.S. resumed litigation in the dispute in September (see 14091902). The apparel industry may be eligible for sanctions as a result, said one industry representative before USTR made the decision to reopen the dispute (see 14082701). The labor violations cited in the brief total more than 400. The Guatemalan government’s failure to uphold its laws and CAFTA commitments allowed local manufacturers in the sectors mentioned to produce and sell goods without having to pay the costs involved with compliance, said the briefing. “With respect to the apparel sector … 97 percent of Guatemala’s apparel exports were destined for CAFTA-DR countries, and 94 percent of these came to the United States,” said the briefing, referring to the Dominican Republic, also a partner in the agreement. “Guatemalan imports from other CAFTA-DR countries also compete with the apparel products made by these companies.”