Customs, import and trade law > DR-CAFTA Labor Compliance Verification

U.S. concern for free trade labor issues did not originate with DR-CAFTA; the agreement is the eighth free trade agreement passed by the Senate to provide work force protections. The U.S. concern is two-fold: first, the desire to protect Americans from outsourcing of jobs to low-wage foreign sources; and second, to insure that foreign workers enjoy adequate working conditions.

DR-CAFTA is different from earlier free trade agreements in its recognition of each member country’s own labor laws, providing sanctions only if the applicable nation’s regulations have been violated in the making or distribution of the product. In DR-CAFTA, each member country agrees to adhere to the labor principals of the International Labor Organization and its stance against child labor, unsafe working conditions, discrimination, and the like. These principals are reflected in Chapter 16 of DR-CAFTA, and it is agreed that a member nation’s failure to abide by these principals will result in severe monetary sanctions.

Internally, member countries are left with the freedom to decide and implement their own set of labor laws: DR-CAFTA does not attempt to impose its own legislation upon any sovereign. Companies in violation of a particular law are disciplined and sanctioned by their respective governments..

Member nations are implementing internal changes to correspond with DR-CAFTA. For example, within 8 months of signing the Agreement, Guatemala’s ministry of labor (with the assistance of the ILO) had implemented a procedure to monitor apparel factories, strengthened the impact of its labor courts, and established factory training programs to educate on labor rights.