Forced Labor

The Office of the U.S. Trade Representative issued a request for comment on the operation of the Caribbean Basin Economic Recovery Act (CBERA), as amended by the Caribbean Basin Trade Partnership Act. Interested parties may submit comments on any aspect of the program’s operation, including the performance of CBERA and CBTPA beneficiary countries. USTR specifically requested input on the following:

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) should release information that ensures that Uzbekistan-sourced cotton is not produced through child and forced labor, the main U.S. and Canadian purchasers of Bangladeshi cotton said Sept. 20 in a letter to the BGMEA. BGMEA plans to sign a Memorandum of Understanding with the Uzbek government, the letter says. The U.S. and Canadian groups cite reports that indicate Uzbekistan systematically traffics citizens for cotton harvest.

Vietnam may not be able to meet labor standards in a Trans-Pacific Partnership agreement, said International Brotherhood of Teamsters President James Hoffa in an Aug. 26 letter to U.S. Trade Representative Michael Froman (here). Hoffa asked if the USTR might seek a "phase-in" period for the country to address its labor issues. Hoffa also cited recent endorsement from Rep. George Miller, senior Democrat on the Committee on Education and Workforce of a Worker Rights Consortium May report (here), that outlined poor Vietnamese labor conditions. “The U.S. must lead in enforcement of labor obligations that inform our national trade policy,” said Miller in a July 24 letter (here) to Froman. An Education and Workforce Committee press official declined to comment.

International Trade Today is providing readers with some of the top stories for July 22-26 in case they were missed.

The Labor Department updated its list of goods it believes to have been produced by child labor or forced labor to add four goods (cattle from South Sudan, dried fish from Bangladesh, fish from Ghana, garments from Vietnam, and gold and wolframite from the Democratic Republic of Congo). The full report, including the updated list and a discussion of the list’s context, scope, methodology, and limitations, as well as frequently asked questions and a bibliography of sources, is available on the DOL website (here). The Federal Register notice is (here)

The Obama Administration published the Generalized System of Preferences (GSP) action plan provided to the government of Bangladesh for the possible reinstatement of its trade benefits, according to a joint statement by the U.S. Trade Representative (USTR), the Department of Labor and State Department. USTR, which had previously discussed the plan only in broad outlines (see 13071613), said that making the action plan public was “a means to reinforce and support the efforts of all international stakeholders to promote improved worker rights and worker safety in Bangladesh.” The joint statement also said that the U.S. would join forces with the European Union, Bangladesh and the International Labor Organization (ILO) to implement goals from the Sustainability Compact, which are broadly consistent with the published GSP Action Plan.

While the decision to rescind General System of Preferences (GSP) status for Bangladesh is considered to be largely symbolic, the change is expected to reverberate among the U.S. business community, observers say. Although individual U.S. interests vary depending on scope and scale of specific relationships with Bangladeshi manufacturers, some U.S. importers will likely be forced to foster different manufacturing sources in the coming months. The United States Trade Representative (USTR) decided in late June to rescind GSP status for the South Asian nation (see 13062820) following a series of labor disasters in Bangladesh over the past year, culminating in the April 24 Rana Plaza factory fire that claimed nearly 1,200 lives

A majority of stakeholders urged caution in possibly extending Generalized System of Preferences benefits to Myanmar (Burma) in comments filed us the U.S. Trade Representative (USTR). They said the country’s progress towards good governance, while admirable, is tenuous and remains fraught with concerns over worker’s rights and military power. The USTR posted comments on its review to extend GSP to Myanmar (Burma) and Laos May 22. USTR is holding a public hearing in connection with its review June 4 (see 13041521).

CBP should prohibit the import of cotton yarn and fabric from Uzbekistan because the cotton is harvested by forced labor, said the International Labor Rights Forum and Cotton Campaign in a letter to the agency (here). The groups say cotton processors in Uzbekistan use only forced labor to manufacture the cotton and fabric. The government-run cotton industry requires its citizens to work in the cotton production system or potentially face a number of disciplinary actions, including loss of state welfare and physical abuse, they said. A press release on the complaint is (here).

Despite several big trade deals on the horizon and lawmakers anxious for the authority, insiders say a swirl of political considerations surround Trade Promotion Authority (TPA), and expect renewal won't happen anytime soon. While TPA, also known as Fast Track, has been a force behind major trade deals for decades and considered by many a decisive factor for passing a free trade agreement, there's still much uncertainty around renewal in the near future, observers say. Meanwhile, lawmakers pushed hard for movement on TPA during a March 19 hearing on President Obama's trade agenda.