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1 1 (November 13, 2018)

handle is hein.crs/govywo0001 and id is 1 raw text is: Congresina Reeac Seric 0 Updated November 13, 2018 Labor Enforcement Issues in U.S. FTAs Background issues can be referred to other mechanisms. The full Labor provisions in free trade agreements (FTAs)-both in spectrum of dispute procedures, including an arbitral the U.S. and globally-were first included in the North panel and limited monetary penalties, applies to American Agreement on Labor Cooperation (NAALC), the allegations involving three of the 1 principles: a side agreement to the 1994 North American Free Trade persistent pattern of failure to enforce occupational Agreement (NAFTA). Since then provisions have evolved safety and health, child labor or minimum wage from commitments not just to enforce a country's own technical labor standards, where the matter is trade- domestic labor laws, but also to adopt and enforce core related and covered by mutually recognized labor laws. labor principles of the International Labor Organization Other issues, such as freedom of association and the (ILO). As mandated by Congress through trade promotion right to organize are limited to ministerial consultations. authority (TPA), recent U.S. FTAs also subject labor Dominican Republic-Central America FTA chapters to the same dispute settlement procedures as all other obligations. Some Members view strong worker rights (CFT-rian ubahai t A labor cat provisions in U.S. FTAs as an important issue and theyshall not fail to effectively enforce its labor laws, have raised concerns over FTA partner compliance with through a sustained or recurring course of action or labor commitments and the U.S. record of enforcement. These issues were a part of the debate over the Trans- inacto in a ma inlwde Proedure Pacific Partnership (TPP) and in the NAFTA renegotiation, relte to labor cluelion m netary completed in September 2018 as the U.S.-Mexico-Canada penaties.tCreationiof aul cp mech anismbin Agreementaffairs council in te case of CAFTA-DR, were intended Labor standards are not part of World Trade Organization to oversee review and implementation of te labor (WTO) rules; in 1996, members reaffirmed the ILO as the obligations. CAFTA-DR was the first U.S. FTA to competent body to deal with labor issues, while denouncing include measures in support of labor capacity building. the use of labor standards for protectionist purposes. U.S.-Peru, U.S.-Colombia FTA and USMCA labor Limited progress at the WTO led several countries to chapters reflect provisions required by the May 10th include labor commitments in FTAs. The United States and Agreement, a 2007 bipartisan deal between others also include worker rights as eligibility criteria for congressional leadership and te Bush Administration. developing countries to receive unilateral trade preferences. The agreement called for: (1) an additional enforceable commitment that FTA parties adopt and maintain core U.S. FTAs have set precedents both in terms of the scope labor principles of the 1998 ILO Declaration; and (2) te and enforceability of labor provisions. An ILO report found same dispute settlement procedures and remedies, as of 2016, 77 out of 267 FTAs globally included labor including recourse to trade sanctions, for FTA labor provisions, compared to 21 in 2005. Unlike U.S. practice, provisions as applied to other obligations. A party the majority of agreements do not subject labor provisions alleging violation of te provision on ILO commitments to dispute settlement. Most provide a framework for must demonstrate tat failure to adopt or maintain ILO dialogue, capacity building, and monitoring, rather than link principles has been in a manner affecting trade or violations to economic consequences, such as trade investment. The USMCA, which revised te NAALC, sanctions. In cases where dispute settlement is applicable, also reflects updated negotiating objectives on labor such mechanisms have been rarely invoked; countries within TPA-2015. For Colombia, a labor action plan largely aim to solve disputes via cooperative consultations. was also negotiated wit commitments that were required to be met prior to FTA ratification. Enforcement Mechanisms in U.S. FTAs Complaints over U.S. FTA partners' compliance with labor Summary of US. Labor Disputes commitments have been brought under five FTAs. Among The Office of Trade and Labor Affairs (OTLA) within the these agreements, the provisions subject to dispute U.S. Department of Labor (DOL) receives and reviews resolution, procedures, and remedies may differ: complaints (termed submissions) of alleged violations of * NAALC contains 11 principles on worker rights, FTA labor commitments. The DOL consults and subject to separate dispute settlement procedures from coordinates with the U.S. Trade Representative (USTR) and the main NAFTA text. NAALC aims to settle State Department on labor enforcement issues. Per OTLA, complaints regarding labor enforcement primarily via allegations in a labor submission must raise issues rlevant dialogue and consultations, through the national to the labor provisions in the NAALC or FTA and illustrate administrative offices and at the ministerial level. If a country's failure to comply with its obligations. If the consultations are unable to resolve a complaint, certain submission is accepted, OTLA undertakes a review and https://crsreports.congress go

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