Inspection Rather than Deposits for Maquilas
Guatemala is preparing a plan to inspect factories in order to avoid a possible arbitration, forced by the US, for non-compliance of labor standards under CAFTA.
Tuesday, April 17, 2012
The Labour Ministry is preparing a program to inspect working conditions in the textile factories which could take six months to complete. The plan must conform to the standards set by enterprises under the 29-89 scheme (Law on Promotion of Export Activity and Maquilas).
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The government has made a committment to the E.U. to submit a reform bill and its regulations within 60 days, so as not to adversely affect the labor market.
The U.S. government believes that Guatemala has not taken sufficient measures to resolve problems with labour conditions.
The U.S. is withdrawing from suing the Guatemalan State for breach of labor rules before an international tribunal provided by the DR-CAFTA.
The Office of U.S. Trade Representatives (USTR) has given Guatemala 6 months to meet two commitments on labor issues.
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