U.S. Denounces Labor Conditions in Guatemala

The U.S. government believes that Guatemala has not taken sufficient measures to resolve problems with labour conditions.

Tuesday, May 17, 2011

In 2010 the U.S. censured the Guatemalan government for not ensuring acceptable work conditions nor rights of association for its workers.

According to an article in cnn review.com.gt, Ron Kirk, a representative of U.S. Trade, said in a press release, "Although Guatemala has taken positive steps in recent months, their actions and proposals have been insufficient to address what we see as systematic failures."

Having failed to resolve the problem, the U.S. Government will follow the activation process for settlement of disputes referred to in Chapter 20 of the CAFTA trade agreement which could lead to the imposition of a fine and trade sanctions. This will be the first time this mechanism has been activated since the signing of CAFTA in 2006.

More on this topic

Guatemala to Reform 'Textile Factory Development Act'

June 2011

The government has made a committment to the E.U. to submit a reform bill and its regulations within 60 days, so as not to adversely affect the labor market.

The U.S. has complained since 2010 that the Guatemalan government has not ensured acceptable working conditions and rights of association for its workers.

USA Accuses Guatemala of Breaking Labor Laws

July 2010

The USA condemns the Guatemalan government for not guaranteeing acceptable working conditions or the right to form unions.

The US commercial representative, Ron Kirk, indicated that, "we want to see the Guatemalan government take specific and effective measures, including, if necessary, leglislative reform in order to reduce the systemic failings of the country's labor laws".

Inspection Rather than Deposits for Maquilas

April 2012

Guatemala is preparing a plan to inspect factories in order to avoid a possible arbitration, forced by the US, for non-compliance of labor standards under CAFTA.

The Labour Ministry is preparing a program to inspect working conditions in the textile factories which could take six months to complete.

U.S. Presses Guatemala Over Labor Rights

December 2011

The Office of U.S. Trade Representatives (USTR) has given Guatemala 6 months to meet two commitments on labor issues.

Failure to comply with these provisions, included in the Free Trade Agreement, would mean the matter would proceed to arbitration.

Of the 17 commitments required by the U.S.

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