U.S. Presses Guatemala Over Labor Rights

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

Tuesday, December 20, 2011

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. to ensure respect for labor standards, Guatemala is compliant with 15, the two outstanding are the restoration the Ministry of Labour’s power to sanction and the establishment of a deposit for companies operating under the Maquila Law.

"The USTR has given us some time, but confirmed that if we do not present options to resolve the alleged non-observance of labor rights, they will insist on going to an arbitration panel", said Economy Minister Luis Velasquez to Prensalibre.com.

Velasquez said the answer given to the USTR is that "we can not do any more, especially if we are asked to do something that has been declared unconstitutional."

More on this topic

Labor Organizations Request that US Start Arbitration

April 2012

Syndicated organizations from the U.S. and Guatemala have asked the U.S. government to initiate arbitration proceedings against the Government of Guatemala, over labor matters.

The American Federation of Labor - Congress of Industrial Organizations (AFL-CIO) and 6 Guatemalan unions, have asked the U.S.

Guatemala Faces Arbitration Over Labor Standards

May 2012

The authorities see it as "inevitable" that the U.S. will take the country to such a process due to pressure from trade unions, fearing an impact on exports to the U.S. market.

"It's almost inevitable that the case will go to an arbitration panel," said Economy Minister Sergio de la Torre, speaking of the imminent start of a U.S.

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.

DR-CAFTA: Problems with Certificates of Origin

August 2011

U.S. products are arriving with certificates of origin stating they are part of NAFTA, the trade agreement between the U.S., Canada and Mexico, which means that when they enter Guatemala they lose their tax privileges from the FTA with Central America.

The Guatemalan Minister of Economy, Luis Velasquez, has submitted a proposal to the Council of Ministers of Economy of Central America (Comieco) which aims to add an amendment to DR-CAFTA on error correction mechanisms.

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