A broad coalition of business groups has successfully beat back the AFL-CIO’s petition to pressure China to improve its labor conditions by unilaterally imposing steep tariffs on Chinese goods.
 
In March, the AFL-CIO filed a petition under Section 301 of the Trade Act of 1974 requesting that the U.S. Trade Representative’s office initiate an investigation of China’s labor practices.  In its petition, the union called upon the U.S. unilaterally to impose special duties of up to 77 percent on goods imported from China, and then – with trade restrictions already in place – “negotiate” an agreement with Beijing on its labor practices.
 
In addition, the AFL-CIO sought to stop the U.S. from concluding new market-opening agreements with any trading partners until the World Trade Organization “gives protection to workers’ fundamental rights that is equivalent to the protection to commercial interests.”
 
In an April 7 letter to President Bush, USCIB joined numerous industry groups in arguing strongly against the labor appeal.  “Cutting off billions of dollars worth of trade would threaten the livelihood of American farmers and workers who are today providing U.S. products and services to China’s growing market, without contributing to the amelioration of China’s widely recognized labor and human rights problems,” the letter stated.  “Moreover, trade-restricting taxes on Chinese imports would ultimately be paid by American consumers, with the burden falling disproportionately on low- and middle-income Americans.”
 
The administration announced in late April it would decline to pursue the union’s petition, arguing that diplomatic engagement is a better way to tackle labor  issues with China.
 
For more information: www.uscib.org/index.asp?DocumentID=2864