U.S. Trade Representative (USTR)

U.S. and Peruvian officials met in Lima on Oct. 17 to boost cooperation in combating labor rights violations, namely child and forced labor in Peru, the Office of the U.S. Trade Representative (USTR) said in a statement. The two sides met to strengthen implementation of the U.S.-Peru free trade agreement, which went into force in 2009. The Oct. 17 meeting marks the second for the Labor Affairs Council, a working group created through the trade agreement. The U.S. and Peru aim to work together to “guarantee full implementation of the Labor Chapter” and, in particular, improve labor inspections in Peru, said the statement. Many members of the Obama administration, as well as their counterparts in the Peruvian government, attended the meeting, including Deputy Assistant USTR Carlos Romero.

Infringements on labor rights pervade Honduran industry, in violation of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), Communications Workers of America President Larry Cohen said on Oct. 15, after a trip to Honduras with a Democratic congressman and other union leaders. The trip focused on U.S. immigration policy and the poor Honduran economy, but Cohen stressed the need for the Labor Department to act on an AFL-CIO complaint on the labor rights violations, which include the murder of lawyers and weakened bargaining rights.

U.S. Trade Representative Michael Froman led a summit on Oct. 10, alongside other Obama administration officials and a number of international development representatives, to push for labor improvements in Myanmar’s industry, the Office of the USTR said in a statement (here). The summit builds off labor consultations launched in August, which leaders from both countries said they hoped would lead to a labor rights initiative by November (see 14082811). The two sides are pressing a long-term labor reform plan, as well as increased collaboration and communication between Myanmar and the global community.

The U.S. and Indonesia struck compromise on Oct. 3 in a long-running dispute over a U.S. sales ban on clove cigarettes, the World Trade Organization announced (here). The WTO’s dispute arm faulted the U.S. for the ban, which stems from the Family Smoking Prevention Tobacco Control Act of 2009. Indonesia floated its retaliation plans in 2013, and after the U.S. objected, the two sides agreed to re-arbitrate the dispute. The U.S. ban on flavored cigarettes does not include menthol cigarettes, one part of the law that Indonesia argued is discriminatory.

Australia will likely continue to push for increased U.S. sugar market access in the lead-up to the next Trans-Pacific Partnership talks in late October, but the U.S. is showing no signs of relenting in its strict position on sugar protectionism, said a senior U.S. Trade Representative official and industry analysts. Nor is the overarching deal dependent on reconciling U.S. and Australian positions on sugar, the analysts said, adding that the U.S.-Japanese market access negotiations are still the biggest agricultural obstacle for those that want negotiations concluded quickly. Australia will host the next TPP round of talks from Oct. 25-29.

The Obama administration will restart litigation in a U.S.-Guatemala labor dispute, administration officials, lawmakers and a union leader announced on Sept. 18. The dispute is the first to focus on labor in a U.S. free trade agreement. The Office of the U.S. Trade Representative in August gave Guatemala four more weeks to prove its labor policy and practice is in compliance with a U.S.-Guatemala labor action plan in 2013, but those efforts evidently fell short. The 2013 Enforcement Plan was brokered under the Dominican Republic-Central American Free Trade Agreement.

The Office of the U.S. Trade Representative should “resume litigation” in the Guatemalan labor settlement process under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), said three Democratic Finance Committee members in an Aug. 27 statement. USTR gave Guatemala in recent days four more weeks to present documentation before the U.S. will reactivate the dispute process (see 14082602). “The latest deadline for Guatemala to demonstrate compliance with the labor enforcement plan is fast approaching,” said committee Chairman Ron Wyden, D-Ore., along with Sens. Ben Cardin, D-Md., and Sherrod Brown, D-Ohio. “Guatemala should receive no further extensions.” Both sides endorsed a Labor Action Plan in 2013. The U.S. is able to impose sanctions on Guatemala for its failure to comply with CAFTA labor mandates, but that may limit Guatemalan exports to the U.S., said industry representatives (see 14082701).

President Barack Obama announced $7 billion in new financing resources on Aug. 5 to promote U.S. exports and investment on the African continent through aviation, construction and other projects, as part of an administration-wide effort to bolster trade under the umbrella Doing Business in Africa campaign (here). The $7 billion figure includes $3 billion in Export-Import (Ex-Im) Bank lending over a two year period, along with a host of other financing initiatives from different agencies. The announcement came as the U.S.-Africa Leaders Summit convened for the second day (see 14080501).

Acting Deputy U.S. Trade Representative (USTR) Wendy Cutler concluded on July 18 three days of Trans-Pacific Partnership auto trade negotiations without announcing any significant breakthroughs in the talks. The two sides made “steady progress” in the talks but gaps remain, said USTR. Through the Trans-Pacific Partnership (TPP), the Obama administration is aiming to liberalize the historically closed Japanese auto market by dismantling a number of non-tariff barriers, but the U.S. and Japan don't see eye to eye on a number of areas (see 14050123). USTR did not announce any date for auto talks to resume.

The U.S. and Japan will continue to negotiate in the coming weeks on agricultural market access in the Trans-Pacific Partnership following two days of talks between Acting Deputy U.S. Trade Representative (USTR) Wendy Cutler and senior Japanese trade negotiator Hiroshi Oe in Washington, D.C. The next summit is scheduled for Aug. 4-5 in Washington, D.C., said the Office of the USTR in a statement. The statement said the two officials made progress in narrowing negotiating gaps, but did not announce any significant breakthrough. The Obama administration has publicly called for comprehensive elimination of agriculture tariffs in the agreement, but many analysts and lawmakers argue that's unlikely (see 14060404). Japanese officials are still protesting tariff elimination on more than 500 tariff lines, according to the most recent public updates.