On their last day of work under Ambassador Katherine Tai, US Trade Representative staff announced a new Forced Labor strategy, model negotiating texts and a successful resolution of a USMCA dispute with a Mexican architectural glass factory.
The strategy is the first time the United States has laid out a comprehensive approach to using trade tools to combat forced labor. It includes a range of actions the United States is taking and will consider utilizing to address forced labor.
"From work on the Uyghur Forced Labor Prevention Act and the United States-Mexico-Canada Agreement to launching the first ever Section 301 investigation of acts, policies, and practices that may constitute violations of labor rights in Nicaragua, this strategy demonstrates how the United States has made major strides in using trade to combat forced labor and how to build on those efforts going forward," stated the announcement.
The authors attribute the development of the strategy to three policy documents:
1. The National Action Plan to Combat Human Trafficking; announced by President Trump in October 2020.,
2. Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally issued by President Biden in November 2023, which has been deleted from White House and State Department websites.
3. The National Action Plan on Responsible Business Conduct, updated in March 2024 by the Biden Administration, has also been deleted from White House and State Department sites.
Monday the USTR announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Vidrio Decorativo Occidental, S.A. de C.V. (VDO) facility, in Matamoros, Tamaulipas, Mexico, which specializes in manufacturing glass inserts for doorframes, doors with insulated glass, and window blinds.
This matter was brought to the attention of the U.S. government through a petition. After the United States requested the Government of Mexico’s review of the matter, Mexico and the company took several actions to remediate the denials of rights identified by the United States, including payment of owed bonuses and retroactive salary adjustments, offers to rehire workers, and measures to address employer interference in union affairs.
On November 8, 2024, pursuant to section 752(a) of the United States–Mexico–Canada Agreement Implementation Act (Pub. L. No. 116-113), suspension of liquidation was directed for all unliquidated entries of goods from the VDO facility in Matamoros. The suspension of liquidation is no longer in effect.
The USTR Monday also released released model negotiating texts. "Allies and partners need new tools to address these challenges, and these model texts are part of our effort to provide building blocks toward a version of globalization that is more responsive to the challenges we are confronting today, at home and abroad,” writes Ms. Tai in the instruction.
The five texts are: Competition Policy; Inclusive Economy and Trade; Non-Market Policies and Practices; Standards, Technical Regulations, and Conformity Assessment; and Public Enterprises and Designated Monopolies.
The cover note and the model texts can be found here:
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