Caribbean Basin Trade and Partnership Act
Encyclopedia
The Caribbean Basin Trade Partnership Act (CBTPA) is a law
adopted by the U.S. Government in October 2000 to delineate enhanced trade
preferences and eligibility requirements for the 24 beneficiary countries of the Caribbean
Basin region.
On October 2, President Clinton
signed the Proclamation implementing the Caribbean Basin Trade Partnership Act (CBTPA – Title II of the Trade and Development Act of 2000). The Presidential Proclamation declares the 24 current beneficiary countries of the Caribbean Basin Initiative
(CBI) to be "Beneficiary Countries" for purposes of the enhanced trade preference
s made available under the CBTPA. In addition, the Proclamation modifies the Harmonized Tariff
Schedule to reflect the new trade preferences. It also delegates to the Office of the United States Trade Representative
the authority to publish (through a Federal Register
notice) additional determinations regarding the compliance of CBTPA Beneficiary Countries with customs-related procedures established in the CBTPA.
made in the Caribbean Basin region. Duty- and quota-free treatment is provided for apparel made in the CBI from U.S. fabric
s formed from U.S. yarns. Duty/quota-free treatment is also available for certain knit apparel made in CBTPA beneficiary countries from fabrics formed in the Caribbean Basin region, provided that U.S. yarns are used in forming the fabric. This "regional fabric" benefit for knit apparel is subject to an overall yearly limit, with a separate limit provided for T-shirt
s.
New duty/quota free treatment will also be available for apparel made in the CBI from fabrics determined to be in "short supply" in the United States, and for designated "hand-loomed, handmade, or folklore" articles.
In addition to these apparel preferences, the CBTPA provides NAFTA
-equivalent tariff treatment for certain items previously excluded from duty-free treatment under the CBI program (e.g., footwear, canned tuna
, petroleum products, watches and watch parts).
, Aruba
, Bahamas, Barbados
, Belize
, Costa Rica
, Dominica
, Dominican Republic
, El Salvador
, Grenada
, Guatemala
, Guyana
, Haiti
, Honduras
, Jamaica
, Montserrat
, Netherlands Antilles
, Nicaragua
, Panama
, Saint Kitts and Nevis
, Saint Lucia
, Saint Vincent and the Grenadines
, Trinidad and Tobago
, and British Virgin Islands
. Through the Proclamation issued today, President Clinton designated all 24 countries as CBTPA Beneficiary Countries.
. In addition, the TPSC took into account public comments regarding the eligibility review, solicited through a Federal Register notice published June 19, 2000. The TPSC received 206 comments in response to this notice.
Through a series of meetings, the TPSC identified a number of concerns regarding certain countries' performance with respect to the eligibility criteria established in the CBTPA. For each of these areas of concern, the TPSC further identified specific policy objectives to be pursued with the relevant governments, with the general aim of soliciting assurances that these concerns would be addressed. For those countries for which concerns and objectives had been identified, U.S. Embassy officials in the Caribbean Basin region and other U.S. government officials conducted intensive advocacy with local government officials. TPSC recommendations to the President regarding the designation of CBTPA Beneficiary Countries were based on the results
of these efforts.
The eligibility review process involved direct, issue-specific advocacy with a majority of the countries that were potentially eligible for CBTPA benefits. Objectives with respect to intellectual property protection, worker rights, implementation of WTO agreements, and commitments to abide by international anti-corruption guidelines were pursued with a range of countries. The review concluded that CBI countries satisfied the CBTPA criteria regarding commitments to eliminate the worst forms of child labor; however, several countries were urged to expand upon their current efforts to combat all forms of child labor.
In their responses to U.S. concerns, Guatemala's Vice President, Minister of Labor, and other officials have demonstrated considerable good faith in seeking to improve the worker rights situation in their country. The United States welcomes the Ministry of Labor's efforts to date to facilitate a resolution to the situation arising from the 1999 incident involving banana workers. There is evidence of progress in prosecuting those responsible for violence against workers in that case. We also welcome efforts by the government to suspend operating licenses of companies which have violated labor code provisions. In addition, the Guatemalan executive branch has presented legislation to bring the country's labor laws into conformity with ILO recommendations.
It is on the basis of these actions and assurances that Guatemala has been designated at this time as a CBTPA Beneficiary Country.
Despite certain forthcoming actions and statements by Guatemalan officials, the United States remains deeply concerned that the overall worker rights environment in Guatemala represents a threat to those seeking to advance basic, internationally-recognized rights for workers. Instances of anti-union violence, including occasional murders, persist. The widespread impunity for those who provoke and carry out such violence is a particularly severe concern.
Consequently, Guatemala's CBTPA beneficiary status will be reviewed in April 2001, with a focus on further improvements in the area of worker rights. This review will include the following objectives: a) an assessment that the Guatemalan executive branch is taking all actions within its authority to ensure the physical safety and human and civil rights of union leaders and the effective criminal prosecution of persons charged with provoking anti-union violence, including killings of union leaders; b) assurances that the Government of Guatemala is taking all steps within its power to provide for the re-employment of the 900 fired banana workers and settlement of related labor law violations; c) further progress towards enacting the new Labor Code; and d) further improvements in labor law enforcement and judicial administration related to the protection of labor rights.
As a further sign of the seriousness with which the United States views these issues, Ambassador Barshefsky
is initiating immediately a review of Guatemala's eligibility as a beneficiary country under the Generalized System of Preferences
(GSP). This unprecedented self-initiated review will also be concluded in April 2001, and will focus on the government's response to anti-union violence and other aspects of internationally recognized worker rights.
recommendations made by the International Labour Organization. In Nicaragua, the U.S. expressed particular concern with respect to anti-union activity at two apparel factories in the Las Mercedes Free Trade Zone, and successfully sought the government's assurances that workers at those factories would be informed of their rights under Nicaragua's Labor Code.
In each of these cases, the governments in question provided responses which were helpful in addressing U.S. concerns. Nonetheless, the Administration believes that worker rights practices in these countries should be subject to ongoing monitoring. This monitoring will focus on follow-through to the commitments made by these governments in the context of the CBTPA eligibility review. In addition, the United States will request bilateral consultations with each of the three governments to discuss worker rights concerns by June 30, 2001.
Material taken from http://www.usleap.org/trade/CTPA10-03.html as well as http://www.ustr.gov
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
adopted by the U.S. Government in October 2000 to delineate enhanced trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
preferences and eligibility requirements for the 24 beneficiary countries of the Caribbean
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
Basin region.
On October 2, President Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
signed the Proclamation implementing the Caribbean Basin Trade Partnership Act (CBTPA – Title II of the Trade and Development Act of 2000). The Presidential Proclamation declares the 24 current beneficiary countries of the Caribbean Basin Initiative
Caribbean Basin Initiative
The Caribbean Basin Initiative was a unilateral and temporary United States program initiated by the 1983 "Caribbean Basin Economic Recovery Act" . The CBI came into effect on January 1, 1984 and aimed to provide several tariff and trade benefits to many Central American and Caribbean countries....
(CBI) to be "Beneficiary Countries" for purposes of the enhanced trade preference
Trade Preference
A Trade Preference is when one country prefers buying goods from some other country more than it would from other countries. It grants special support to one country over another. It is the opposite of a Trade Prohibition.-See also:*Trade Mandate...
s made available under the CBTPA. In addition, the Proclamation modifies the Harmonized Tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
Schedule to reflect the new trade preferences. It also delegates to the Office of the United States Trade Representative
Office of the United States Trade Representative
The Office of the United States Trade Representative is the United States government agency responsible for developing and recommending United States trade policy to the president of the United States, conducting trade negotiations at bilateral and multilateral levels, and coordinating trade...
the authority to publish (through a Federal Register
Federal Register
The Federal Register , abbreviated FR, or sometimes Fed. Reg.) is the official journal of the federal government of the United States that contains most routine publications and public notices of government agencies...
notice) additional determinations regarding the compliance of CBTPA Beneficiary Countries with customs-related procedures established in the CBTPA.
Summary of Enhanced CBTPA Preferences
The CBTPA significantly expands preferential treatment for apparelClothing
Clothing refers to any covering for the human body that is worn. The wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies...
made in the Caribbean Basin region. Duty- and quota-free treatment is provided for apparel made in the CBI from U.S. fabric
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
s formed from U.S. yarns. Duty/quota-free treatment is also available for certain knit apparel made in CBTPA beneficiary countries from fabrics formed in the Caribbean Basin region, provided that U.S. yarns are used in forming the fabric. This "regional fabric" benefit for knit apparel is subject to an overall yearly limit, with a separate limit provided for T-shirt
T-shirt
A T-shirt is a style of shirt. A T-shirt is buttonless and collarless, with short sleeves and frequently a round neck line....
s.
New duty/quota free treatment will also be available for apparel made in the CBI from fabrics determined to be in "short supply" in the United States, and for designated "hand-loomed, handmade, or folklore" articles.
In addition to these apparel preferences, the CBTPA provides NAFTA
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
-equivalent tariff treatment for certain items previously excluded from duty-free treatment under the CBI program (e.g., footwear, canned tuna
Tuna
Tuna is a salt water fish from the family Scombridae, mostly in the genus Thunnus. Tuna are fast swimmers, and some species are capable of speeds of . Unlike most fish, which have white flesh, the muscle tissue of tuna ranges from pink to dark red. The red coloration derives from myoglobin, an...
, petroleum products, watches and watch parts).
Beneficiary Country Designation
The CBTPA authorized the President to designate individual countries as being "Beneficiary Countries" in order to receive the enhanced trade benefits available under the Act. The twenty-four current beneficiaries of the Caribbean Basin Economic Recovery Act (CBERA) were potentially eligible to be declared CBTPA Beneficiary Countries. These countries are: Antigua and BarbudaAntigua and Barbuda
Antigua and Barbuda is a twin-island nation lying between the Caribbean Sea and the Atlantic Ocean. It consists of two major inhabited islands, Antigua and Barbuda, and a number of smaller islands...
, Aruba
Aruba
Aruba is a 33 km-long island of the Lesser Antilles in the southern Caribbean Sea, located 27 km north of the coast of Venezuela and 130 km east of Guajira Peninsula...
, Bahamas, Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
, Belize
Belize
Belize is a constitutional monarchy and the northernmost country in Central America. Belize has a diverse society, comprising many cultures and languages. Even though Kriol and Spanish are spoken among the population, Belize is the only country in Central America where English is the official...
, Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
, Dominica
Dominica
Dominica , officially the Commonwealth of Dominica, is an island nation in the Lesser Antilles region of the Caribbean Sea, south-southeast of Guadeloupe and northwest of Martinique. Its size is and the highest point in the country is Morne Diablotins, which has an elevation of . The Commonwealth...
, Dominican Republic
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...
, El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...
, Grenada
Grenada
Grenada is an island country and Commonwealth Realm consisting of the island of Grenada and six smaller islands at the southern end of the Grenadines in the southeastern Caribbean Sea...
, Guatemala
Guatemala
Guatemala is a country in Central America bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize to the northeast, the Caribbean to the east, and Honduras and El Salvador to the southeast...
, Guyana
Guyana
Guyana , officially the Co-operative Republic of Guyana, previously the colony of British Guiana, is a sovereign state on the northern coast of South America that is culturally part of the Anglophone Caribbean. Guyana was a former colony of the Dutch and of the British...
, Haiti
Haiti
Haiti , officially the Republic of Haiti , is a Caribbean country. It occupies the western, smaller portion of the island of Hispaniola, in the Greater Antillean archipelago, which it shares with the Dominican Republic. Ayiti was the indigenous Taíno or Amerindian name for the island...
, Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
, Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
, Montserrat
Montserrat
Montserrat is a British overseas territory located in the Leeward Islands, part of the chain of islands called the Lesser Antilles in the West Indies. This island measures approximately long and wide, giving of coastline...
, Netherlands Antilles
Netherlands Antilles
The Netherlands Antilles , also referred to informally as the Dutch Antilles, was an autonomous Caribbean country within the Kingdom of the Netherlands, consisting of two groups of islands in the Lesser Antilles: Aruba, Bonaire and Curaçao , in Leeward Antilles just off the Venezuelan coast; and Sint...
, Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
, Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, Saint Kitts and Nevis
Saint Kitts and Nevis
The Federation of Saint Kitts and Nevis , located in the Leeward Islands, is a federal two-island nation in the West Indies. It is the smallest sovereign state in the Americas, in both area and population....
, Saint Lucia
Saint Lucia
Saint Lucia is an island country in the eastern Caribbean Sea on the boundary with the Atlantic Ocean. Part of the Lesser Antilles, it is located north/northeast of the island of Saint Vincent, northwest of Barbados and south of Martinique. It covers a land area of 620 km2 and has an...
, Saint Vincent and the Grenadines
Saint Vincent and the Grenadines
Saint Vincent and the Grenadines is an island country in the Lesser Antilles chain, namely in the southern portion of the Windward Islands, which lie at the southern end of the eastern border of the Caribbean Sea where the latter meets the Atlantic Ocean....
, Trinidad and Tobago
Trinidad and Tobago
Trinidad and Tobago officially the Republic of Trinidad and Tobago is an archipelagic state in the southern Caribbean, lying just off the coast of northeastern Venezuela and south of Grenada in the Lesser Antilles...
, and British Virgin Islands
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
. Through the Proclamation issued today, President Clinton designated all 24 countries as CBTPA Beneficiary Countries.
Eligibility Review Factors
In considering the eligibility of these countries for CBTPA Beneficiary Country status, the CBTPA required the President to take into account the existing eligibility criteria of the CBERA, as well as several new criteria elaborated in the CBTPA. These new criteria include:- Whether the beneficiary country has demonstrated a commitment to undertake its obligations under the WTOWorld Trade OrganizationThe World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
on or ahead of schedule and participate in negotiations toward the completion of the FTAA or another free tradeFree tradeUnder a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
agreement. - The extent to which the country provides protection of intellectual property rights consistent with or greater than the protection afforded under the Agreement on Trade-Related Aspects of Intellectual Property RightsAgreement on Trade-Related Aspects of Intellectual Property RightsThe Agreement on Trade Related Aspects of Intellectual Property Rights is an international agreement administered by the World Trade Organization that sets down minimum standards for many forms of intellectual property regulation as applied to nationals of other WTO Members...
. - The extent to which the country provides internationally recognized worker's rights, including:
- the right of association;
- the right to organize and bargain collectively;
- a prohibition on the use of any form of forced or compulsory laborUnfree labourUnfree labour includes all forms of slavery as well as all other related institutions .-Payment for unfree labour:If payment occurs, it may be in one or more of the following forms:...
; - a minimum age for the employment of children; and
- acceptable conditions of work with respect to minimum wageMinimum wageA minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
s, hours of work, and occupational safety and healthOccupational safety and healthOccupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment...
;
- Whether the country has implemented its commitments to eliminate the worst forms of child laborChild laborChild labour refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries...
. - The extent to which the country has met U.S. counter-narcoticNarcoticThe term narcotic originally referred medically to any psychoactive compound with any sleep-inducing properties. In the United States of America it has since become associated with opioids, commonly morphine and heroin and their derivatives, such as hydrocodone. The term is, today, imprecisely...
s certification criteria under the Foreign Assistance ActForeign Assistance ActThe Foreign Assistance Act is a United States Act of Congress. The Act reorganized the structure of existing U.S. foreign assistance programs, separated military from non-military aid, and created a new agency, the United States Agency for International Development to administer those...
of 1961. - The extent to which the country has taken steps to become a party to and implements the Inter-American Convention Against CorruptionInter-American Convention Against CorruptionThe Inter-American Convention Against Corruption was adopted by the member countries of the Organization of American States on 29 March 1996; it came into force on 6 March 1997....
. - The extent to which the country applied transparent, nondiscriminatoryDiscriminationDiscrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...
and competitiveCompetitionCompetition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
procedures in government procurement, and contribute to efforts in international for to develop an implement rules on transparency in government procurement.
Customs-Related Eligibility Determination
In addition to Presidential eligibility designations based on the criteria described above, the CBTPA requires an additional determination that countries have implemented or are making substantial progress towards implementing certain customs procedures based on those contained in the NAFTA. Today's Proclamation delegates authority for these additional determinations to USTR. USTR will publish initial determinations on this eligibility criteria in coming days, through a notice in the Federal Register.Eligibility Review Process
The USTR-chaired Trade Policy Staff Committee (TPSC) conducted a review of countries' eligibility for CBTPA preferences, taking into account the criteria established in the Act. This review relied upon information provided by U.S. Embassies, keyed to the various eligibility criteria, as well as on information from other reliable sources, such as the International Labour OrganizationInternational Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...
. In addition, the TPSC took into account public comments regarding the eligibility review, solicited through a Federal Register notice published June 19, 2000. The TPSC received 206 comments in response to this notice.
Through a series of meetings, the TPSC identified a number of concerns regarding certain countries' performance with respect to the eligibility criteria established in the CBTPA. For each of these areas of concern, the TPSC further identified specific policy objectives to be pursued with the relevant governments, with the general aim of soliciting assurances that these concerns would be addressed. For those countries for which concerns and objectives had been identified, U.S. Embassy officials in the Caribbean Basin region and other U.S. government officials conducted intensive advocacy with local government officials. TPSC recommendations to the President regarding the designation of CBTPA Beneficiary Countries were based on the results
of these efforts.
The eligibility review process involved direct, issue-specific advocacy with a majority of the countries that were potentially eligible for CBTPA benefits. Objectives with respect to intellectual property protection, worker rights, implementation of WTO agreements, and commitments to abide by international anti-corruption guidelines were pursued with a range of countries. The review concluded that CBI countries satisfied the CBTPA criteria regarding commitments to eliminate the worst forms of child labor; however, several countries were urged to expand upon their current efforts to combat all forms of child labor.
Guatemala: Additional Review of Worker Rights Issues
The review of Guatemala's eligibility for the enhanced CBI preferences involved extensive consideration of the worker rights situation in that country. The United States raised specific concerns with respect to anti-union violence, including a 1999 incident in which armed vigilantes threatened and kidnapped leaders of a banana workers' union who were protesting the illegal dismissal of 900 workers. Guatemala was asked to facilitate negotiations to reemploy the 900 fired workers and to commit to speedy and effective implementation of labor code requirements with respect to this case. Guatemala's government was also asked to work with the country's legislature to pass proposed revisions to the labor code, and to provide a commitment, over the longer-term, to continual improvements in law enforcement and judicial administration related to the protection of worker rights.In their responses to U.S. concerns, Guatemala's Vice President, Minister of Labor, and other officials have demonstrated considerable good faith in seeking to improve the worker rights situation in their country. The United States welcomes the Ministry of Labor's efforts to date to facilitate a resolution to the situation arising from the 1999 incident involving banana workers. There is evidence of progress in prosecuting those responsible for violence against workers in that case. We also welcome efforts by the government to suspend operating licenses of companies which have violated labor code provisions. In addition, the Guatemalan executive branch has presented legislation to bring the country's labor laws into conformity with ILO recommendations.
It is on the basis of these actions and assurances that Guatemala has been designated at this time as a CBTPA Beneficiary Country.
Despite certain forthcoming actions and statements by Guatemalan officials, the United States remains deeply concerned that the overall worker rights environment in Guatemala represents a threat to those seeking to advance basic, internationally-recognized rights for workers. Instances of anti-union violence, including occasional murders, persist. The widespread impunity for those who provoke and carry out such violence is a particularly severe concern.
Consequently, Guatemala's CBTPA beneficiary status will be reviewed in April 2001, with a focus on further improvements in the area of worker rights. This review will include the following objectives: a) an assessment that the Guatemalan executive branch is taking all actions within its authority to ensure the physical safety and human and civil rights of union leaders and the effective criminal prosecution of persons charged with provoking anti-union violence, including killings of union leaders; b) assurances that the Government of Guatemala is taking all steps within its power to provide for the re-employment of the 900 fired banana workers and settlement of related labor law violations; c) further progress towards enacting the new Labor Code; and d) further improvements in labor law enforcement and judicial administration related to the protection of labor rights.
As a further sign of the seriousness with which the United States views these issues, Ambassador Barshefsky
Charlene Barshefsky
Charlene Barshefsky served as United States Trade Representative, the country's top trade negotiator, from 1997 to 2001. Prior to that, she was the Deputy USTR from 1993 to 1997.- Life and career :...
is initiating immediately a review of Guatemala's eligibility as a beneficiary country under the Generalized System of Preferences
Generalized System of Preferences
The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization ,...
(GSP). This unprecedented self-initiated review will also be concluded in April 2001, and will focus on the government's response to anti-union violence and other aspects of internationally recognized worker rights.
Worker Rights Monitoring in El Salvador, Honduras, and Nicaragua
Worker rights issues were also pursued in the context of the CBTPA eligibility review of El Salvador, Honduras, and Nicaragua. With respect to El Salvador, the United States raised concerns regarding the effect of certain privatization programs in restricting union activity, as well as excessive legal formalities applied to the establishment of trade unions. In Honduras, the United States focused on the government's efforts to revise the Honduran labor code to reflectrecommendations made by the International Labour Organization. In Nicaragua, the U.S. expressed particular concern with respect to anti-union activity at two apparel factories in the Las Mercedes Free Trade Zone, and successfully sought the government's assurances that workers at those factories would be informed of their rights under Nicaragua's Labor Code.
In each of these cases, the governments in question provided responses which were helpful in addressing U.S. concerns. Nonetheless, the Administration believes that worker rights practices in these countries should be subject to ongoing monitoring. This monitoring will focus on follow-through to the commitments made by these governments in the context of the CBTPA eligibility review. In addition, the United States will request bilateral consultations with each of the three governments to discuss worker rights concerns by June 30, 2001.
Material taken from http://www.usleap.org/trade/CTPA10-03.html as well as http://www.ustr.gov