U.S. Ratchets Up Pressure on Guatemala to Enforce Labor Laws
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The Obama administration is ratcheting up the pressure on Guatemala to enforce its labor laws. Yesterday, the Office of the U.S. Trade Representative (USTR) announced it was moving forward with arbitration against Guatemala for violating fundamental labor rights under the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).
Arbitration would be the third step in the process outlined under the DR-CAFTA, to compel a nation to enforce its labor obligations under the agreement. Last May, the United States requested a meeting of the Free Trade Commission—which includes ministers of the member countries—when consultations failed to resolve the dispute. The commission met last June.
AFL-CIO President Richard Trumka applauds the decision, saying it protects workers’ safety and voices. Read his full statement here.
China Drops Some Wind Power Subsidies After USW Complaint
Here’s some good news on the trade front: U.S. Trade Representative (USTR) Ron Kirk announced today that China has ended certain wind power equipment subsidies that gave its companies an unfair advantage in the global market.
The action came after the United Steelworkers (USW) filed a Section 301 trade complaint last October charging that China’s government uses hundreds of billions of dollars in subsidies, performance requirements, preferential practices and other illegal trade activities to dominate the renewable energy market.
The subsidies take the form of grants to Chinese wind turbine manufacturers that agreed to use key parts and components made in China rather than purchasing imports. The size of the individual grants range between $6.7 million and $22.5 million, according to the USTR.
WTO Rules Airbus Subsidies Are Illegal
The World Trade Organization (WTO) today confirmed what U.S. workers and aerospace manufacturers have been saying for years: The subsidies the European Union (EU) and its members give to the Airbus are illegal.
In a decision released today, a WTO dispute panel found that $20 billion in aid provided by certain EU nations for new Airbus aircraft over the past 40 years, as well as other subsidies, caused adverse effects to the interests of the United States aerospace industry and therefore violated WTO rules.
About a third of Airbus’s development costs come from European governments in the form of loans that are repaid with interest only if the aircraft is a commercial success.
The 1,050-page report on Airbus was published today by the WTO on its website. Broad outlines of the report have been known since March when a preliminary ruling was sent to the parties involved. Click here to read the full report.
Obama Enforces Trade Laws on China Tire Imports
President Obama took decisive action yesterday to provide relief to the domestic consumer tire industry in response to surging exports of tires from China. His actions will bring relief to many workers and their families and reverse course after eight years of neglect of trade laws by the Bush administration.
In July, the U.S. International Trade Commission (ITC) ruled in favor of a United Steelworkers (USW) petition filed under Section 421 of the Trade Act of 1974. The ITC found that tariff relief was needed to urgently reduce the negative impact of those tire imports. Obama’s decision imposes an increased duty on tires from China for three years. The duties are 35 percent in the first year, then 30 percent and 25 percent in each of the following years.
Tell Policymakers Why Colombia Free Trade Is a Bad Idea
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After eight years of being pushed out of discussions over bad trade agreements, America’s working people now have a chance to personally let policymakers know what they really think about one of the most controversial trade deals.
In an announcement in the July 29 Federal Register, the U.S. Trade Representative (USTR) asks for comments on the U.S.-Colombia Free Trade Agreement. USTR is conducting a review of labor-related issues in the context of the agreement and is seeking “comment from the public to assist the USTR in working with the Colombian government to secure continued progress in ensuring that Colombia’s workers can fully exercise their fundamental labor rights.”
Written comments are due by noon, Sept. 15, 2009. Comments should be submitted electronically online at www.regulations.gov. For alternatives to online submissions, contact Gloria Blue at 202-395-3475.
Obama’s New Trade Enforcement Measures a Welcome First Step
The Obama administration unveiled new trade enforcement measures aimed at saving jobs and creating new jobs in the United States by leveling the global playing field for American workers and businesses.
U.S. Trade Representative Ron Kirk, speaking today at a U.S. Steel plant in Braddock, Pa., near Pittsburgh, said the administration is committed to better enforcement of America’s trade laws, including workers’ rights around the world.
AFL-CIO President John Sweeney praised the commitment to better oversight and enforcement of trade laws.
This is a welcome and long-overdue initiative, and we look forward to working with USTR, Commerce and Labor, among others, to identify and address unfair trade practices that disadvantage domestic producers and workers.
We hope this is only a first installment in President Obama’s pledge to reform our flawed trade policies, however. Enforcement is crucial, but we also need to revisit and strengthen our trade policies and trade laws if we are to rebuild our economy with a vibrant and thriving manufacturing sector.
U.S., European Union File Complaint Over China’s Trade Restrictions
The Obama administration and the European Union (EU) announced yesterday they plan to jointly file a complaint at the World Trade Organization (WTO) over China’s trade restrictions on exports of key raw materials used to manufacture products such as baseball bats, contact lenses and plumbing fixtures.
When China joined the WTO in 2001, it committed to remove the export restrictions on the raw materials. The export restraints are significant because China is the largest global producer of many of the raw materials in question—bauxite, coke, zinc, silicon metal, silicon carbide, fluorspar, yellow phosphorous, magnesium and manganese.
