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USTR Will Not Initiate an Investigation on a Section 301 Petition on Labor Rights in China

The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that it has determined not to initiate an investigation regarding a Section 301 petition filed by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) which addressed workers' rights in China.

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According to USTR, it has made this determination because initiation of an investigation would not be effective in addressing the acts, policies, and practices raised in the petition. In addition, USTR states that the Administration is currently involved in efforts to address with the Government of China many of the labor issues raised in the petition.

Petition Alleged Certain Chinese Government Acts, Etc. are Unreasonable and Burden U.S. Commerce

USTR states that on March 16, 2004, the AFL-CIO filed a petition pursuant to Section 302(a)(1) of the Trade Act of 1974, as amended, alleging that certain acts, policies and practices of the Government of China with respect to Chinese manufacturing workers are unreasonable, as defined in Section 301(d)(3)(B)(iii) of this Trade Act.

In particular, the petition alleged that acts, policies and practices of the Government of China constitute a persistent pattern of conduct that: (i) denies to manufacturing workers the right of association, and the right to organize and bargain collectively; (ii) permits any form of forced or compulsory labor; and (iii) fails to provide standards for minimum wages, hours of work, and occupational safety and health.

The petition claimed that these acts, policies and practices of the Government of China burden U.S. commerce by depressing the wages of Chinese manufacturing workers, resulting in a cost advantage for goods manufactured in China and a loss of U.S. manufacturing jobs.

(See ITT's Online Archives or 04/30/04 news, 04043099 1, for BP summary of the USTR's statement announcing the Administration's rejection of this petition.)

USTR contact - Terrence McCartin (202) 395-3900

USTR notice (FR Pub 05/11/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-10685.pdf