The Mexican ambassador to the U.S. publicized a letter he sent to Labor Secretary Marty Walsh asking for consultations under the Labor Chapter of USMCA over the treatment of agricultural and meatpacking workers. "Although at the federal level labor rights in the United States protect all workers, regardless of their immigration status, in practice, factors such as ignorance, fear and abuse by some employers prevent migrant workers from exercising fully their labor rights in some industries and states," Esteban Moctezuma wrote May 12. He complained that there is no federal regulation for heat stress, and that employers do not comply with rest and bathroom protocols for agriculture workers. He said that agriculture workers are excluded from general wage and hour laws that provide for overtime pay and the right to organize and bargain collectively. Specifically, he said, undocumented workers don't have access to ask for reinstatement to jobs or payment of lost wages under the U.S. labor laws. And he said that officials overlook sexual harassment and violence in both sectors. "For the aforementioned reasons, the Government of Mexico considered it necessary to point out the importance of adequately enforcing its federal regulations to guarantee the labor rights of workers in the agricultural and meat processing and packaging industries in the United States," he wrote.
Former U.S. ambassador to the World Trade Organization Dennis Shea says a planned discussion at the WTO about matters that affect trade in cotton “must examine the trade impact of the use of forced labor to pick cotton in China’s Xinjiang province.” Shea, who was writing for the Center for Strategic and International Studies, where he is now an adjunct fellow, said “ignoring what is happening in Xinjiang would be tantamount to the WTO holding a meeting on global public health and trade without mentioning the Covid-19 pandemic. ... The use of forced labor in the province has likely depressed the global price of cotton, adversely impacted other cotton-exporting nations (particularly those in the developing world) and improperly distorted global trade flows,” and may even be a countervailable subsidy. Shea said the U.S. should raise the issue during the late May meeting.
Even as the U.S. and the European Union work privately to resolve their differences over subsidies to Airbus and Boeing, a U.S. representative at the World Trade Organization complained that the EU provided no status update on coming into compliance over Airbus subsidies. The EU said that the measures it took in August 2020 (see 2008280051) were more than enough to comply with a WTO ruling, according to a Geneva trade official.
At a webinar on U.S.-Vietnam economic relations, Ambassador Ha Kim Ngoc said Vietnam is working to narrow the trade deficit with the U.S., whether by buying more American agricultural exports or encouraging Vietnamese businesses to open factories in the U.S. "I don’t think we can solve the problem overnight, with COVID-19 and the increased demand of the goods from Southeast Asia, and particularly Vietnam," he said April 27.
European professors speaking about the future of the trans-Atlantic trade relationship said that while it's logical for democratic, rule-of-law countries to coordinate trade policy against an authoritarian rival, that's easier said than done.
European Union Trade Commissioner Valdis Dombrovskis, in a Der Spiegel interview published April 10, said that the EU has offered to lift its retaliatory tariffs in response to 25% tariffs on EU steel and 10% tariffs on EU aluminum, while they try to resolve the overcapacity problem. “We have proposed suspending all mutual tariffs for six months in order to reach a negotiated solution,” Dombrovskis said, according to the EU press office in Washington. “This would create a necessary breathing space for industries and workers on both sides of the Atlantic,” he said.
Many advocates for developing countries say a TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights) waiver is needed to accelerate access to vaccines, treatments and COVID-19 tests, but most speakers at an American Bar Association-convened panel said that countries already have the power to curtail pharmaceutical patents for a pandemic, and that technical knowledge and input shortages are a bigger barrier than patents.
The Biden administration said it will appeal a January panel decision at the World Trade Organization that the Commerce Department was wrong to resort to “facts available” calculations of subsidies or cost of production when companies submitted information after deadline and submitted information that was verifiable. The panel also said that the Commerce Department at times was unclear in its requests to firms in South Korean steel and large power transformer antidumping and countervailing duty cases, and that the penalties should be recalculated.
A top European Commission trade official said that it's not reasonable to expect that countries can agree on reforms to dispute settlement that would satisfy the U.S. by November this year. So, Ignacio Garcia Bercero said, countries will need to set a goal of restoring the binding dispute settlement system for the 2023 ministerial meeting of the World Trade Organization. “The WTO without binding dispute settlement is not the WTO,” Garcia Bercero said during a presentation online at the Peterson Institute for International Economics on March 19. “The continued escalation of conflicts if we don’t have a functioning dispute settlement system should be something we should all be worried about.”
A former World Trade Organization appellate body member and a longtime U.S. trade representative's environment advisory committee member agree that an attempt to create a carbon adjustment mechanism by the European Union is likely to violate trade law and support protectionist aims.