US, Guatemala FTA Labour Dispute Advances

The labour rights dispute between the US and Guatemala under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has revved up in recent weeks, with both sides now having sent in written submissions to the arbitral panel outlining their respective claims.

The dispute dates back to July 2010, when the US charged that Guatemala had failed to enforce effectively its own domestic laws, specifically regarding the protection of workers’ rights such as freedom of association, right to collective bargaining, and right to work in acceptable conditions.

Washington had argued that this alleged violation of a CAFTA-DR labour provision had forced US workers to compete against poor labour practices, putting them at a competitive disadvantage.

The 2010 complaint marked the first time that a labour rights complaint had been lodged under a free trade deal. Both the US and Guatemala are parties to CAFTA-DR, a free trade deal that also includes Costa Rica, the Dominican Republic, El Salvador, Honduras, and Nicaragua as its members.