U.S. All CAFTA-DR countries,  Colombia, and Peru received a combined total of about $222 million in  labor-related technical assistance and capacity-building activities since  the passage of implementing legislation for these FTAs. Stakeholders Reported Limited Enforcement Capacity and Gaps in Labor Rights in Selected Partner Countries

			CAFTA-DR: El Salvador and Guatemala

El Salvador. Stakeholders whom we  interviewed in the selected five partner countries generally expressed a  lack of awareness or understanding of DOL’s submission process, which  may have limited the number of submissions filed. DOL Has Closed One of Five Labor Submissions Accepted since 2008

Since 2008, DOL has accepted labor submissions filed under the  Bahrain, Dominican Republic, Guatemala, Honduras, and Peru FTAs and  has closed the Peru FTA submission. DOL Did Not Meet 6- Month Time Frame for Any Submission, Showing the Time Frame to Be Unrealistic

Although DOL accepted most of the submissions it received within the 60- day time frame established by its guidelines, it did not complete its  reviews of the submission within the established 180-day time frame. Guatemala. As a result, according to the union representative, the  conditions of workers identified in the submission have not improved. U.S. They also took some proactive monitoring steps  with several FTA partners. USTR’s, DOL’s, and State’s  annual reports to Congress provide information about labor conditions in  partner countries. However, reflecting in part USTR’s and DOL’s limited  monitoring and enforcement of FTA labor provisions, the reports generally  do not detail concerns about the implementation of FTA labor provisions  by partner countries that have not been the subject of labor submissions.  .

		USTR and DOL Pledged in 2009 to Strengthen Monitoring and Enforcement of FTA Labor Provisions

In 2009, USTR made a public statement pledging to address weaknesses  in monitoring and enforcement of FTA labor provisions such as those we  identified in our July 2009 report. When agencies identify possible inconsistencies with FTA provisions,  agencies take a variety of actions to encourage and obtain foreign  compliance with trade agreements. Peru. DOL  officials expressed concern that challenges related to resource limitations  will grow as the number of FTAs increases. Further, although USTR and DOL jointly pledged in 2009 to adopt a more  assertive, interagency approach to monitoring and enforcing FTA labor  provisions, in practice the agencies systematically investigate possible  inconsistencies with these provisions primarily in response to labor  submissions. Nevertheless, USTR and DOL took issue with our findings that the  agencies do not systematically monitor and enforce labor provisions for  all FTA partners and lack a coordinated strategic approach to monitoring  and enforcement. Appendix I: Objectives, Scope, and Methodology

This report examines (1) steps that selected partner countries have taken,  and U.S. assistance they have received, to implement free trade  agreement (FTA) labor provisions and other labor initiatives and the  reported results of such steps; (2) complaints—known as submissions— about possible violations of FTA labor provisions that DOL has accepted  and any problems related to the submission process; and (3) the extent to  which the Office of the U.S. Trade Representative (USTR), Department of  Labor (DOL), and Department of State (State) monitor and enforce  partner countries’ implementation of FTA labor provisions and report  results to Congress. Objective 1: Examine Steps That Selected Partner Countries Have Taken, and U.S. Assistance They Have Received, to Implement FTA Labor Provisions and Other Labor Initiatives and the Reported Results of Such Steps

To examine the steps that the selected FTA partner countries have taken  to implement labor protection commitments under the respective  agreements and other labor initiatives in the context of the respective  FTAs, as well as the reported results of these steps, we obtained,  reviewed, and analyzed documents from a variety of sources, including  the four selected FTAs and their associated labor annexes as well as the  CAFTA-DR White Paper and the Colombia Labor Action Plan. For example, union  members, in addition to union leaders, are now included in the UNP’s  jurisdiction. U.S. Government Has Provided Assistance to Colombia to Address Violence, Including Violence against Unionists

In support of reducing violence in Colombia, including violence against  unionists, U.S. agencies have funded multiple assistance projects. Monitoring of Implementation of Other Labor Initiatives

In addition to being responsible for monitoring partner countries’  implementation of free trade agreement (FTA) labor provisions, U.S.  agencies are responsible for monitoring the implementation of labor  initiatives such as the White Paper and the Labor Action Plan, which  were developed in the context of, respectively, the Dominican Republic- Central America-United States Free Trade Agreement (CAFTA-DR) and  the United States-Colombia Trade Promotion Agreement (Colombia  FTA). However, in our view, reliance on  labor submissions to assess compliance and take enforcement actions is  inconsistent with USTR’s 2009 commitment to no longer enforce FTA  partners’ labor commitments “only on a complaint-driven basis” but instead  to “immediately identify and investigate labor violations.”
Comment 10: As stated, the report acknowledges that labor submissions  are a key component of USTR’s and DOL’s monitoring and enforcement of  FTA labor provisions and that the agencies undertake considerable  research and analysis in the process of addressing submissions We  modified the text of the report to clarify that after DOL receives a  submission, it works with USTR and State to engage diplomatically to  address concerns, as well as independently to investigate and analyze the  issues.
Why GAO Did This Study

The United States has signed 14 FTAs, liberalizing U.S. trade with 20 countries. These FTAs include provisions regarding fundamental labor rights in the partner countries. USTR and DOL, supported by State, are responsible for monitoring and assisting FTA partners' implementation of these provisions.
GAO was asked to assess the status of implementation of FTA labor provisions in partner countries. GAO examined (1) steps that selected partner countries have taken, and U.S. assistance they have received, to implement these provisions and other labor initiatives and the reported results of such steps; (2) submissions regarding possible violations of FTA labor provisions that DOL has accepted and any problems related to the submission process; and (3) the extent to which U.S. agencies monitor and enforce implementation of FTA labor provisions and report results to Congress. GAO selected CAFTA-DR and the FTAs with Colombia, Oman, and Peru as representative of the range of FTAs with labor provisions, among other reasons. GAO reviewed documentation related to each FTA and interviewed U.S., partner government, and other officials in five of the partner countries.

What GAO Found

Partner countries of free trade agreements (FTA) that GAO selected—the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) and the FTAs with Colombia, Oman, and Peru—have taken steps to implement labor provisions and other initiatives to strengthen labor rights. For example, U.S. and foreign officials said that El Salvador and Guatemala—both partners to CAFTA-DR—as well as Colombia, Oman, and Peru have acted to change labor laws, and Colombia and Guatemala have acted to address violence against union members. Since 2001, U.S. agencies have provided $275 million in labor-related technical assistance and capacity-building activities for FTA partners, including $222 million for the four FTAs GAO reviewed. However, U.S. agencies reported, and GAO found, persistent challenges to labor rights, such as limited enforcement capacity, the use of subcontracting to avoid direct employment, and, in Colombia and Guatemala, violence against union leaders.
Since 2008, the Department of Labor (DOL) has accepted five formal complaints—known as submissions—about possible violations of FTA labor provisions and has resolved one, regarding Peru (see fig.). However, for each submission, DOL has exceeded by an average of almost 9 months its 6-month time frame for investigating FTA-related labor submissions and issuing public reports, showing the time frame to be unrealistic. Also, union representatives and other stakeholders GAO interviewed in partner countries often did not understand the submission process, possibly limiting the number of submissions filed. Further, stakeholders expressed concerns that delays in resolving the submissions, resulting in part from DOL's exceeding its review time frames, may have contributed to the persistence of conditions that affect workers and are allegedly inconsistent with the FTAs.
Five Labor Submissions Accepted by DOL Regarding Free Trade Agreements
In 2009, GAO found weaknesses in the Office of the U.S. Trade Representative's (USTR) and DOL's monitoring and enforcement of FTA labor provisions. In the same year, the agencies pledged to adopt a more proactive, interagency approach. GAO's current review found that although the agencies have taken several steps since 2009 to strengthen their monitoring and enforcement of FTA labor provisions, they lack a strategic approach to systematically assess whether partner countries' conditions and practices are inconsistent with labor provisions in the FTAs. Despite some proactive steps, they generally rely on labor submissions to begin identifying, investigating, and initiating steps to address possible inconsistencies with FTA labor provisions. According to agency officials, resource limitations have prevented more proactive monitoring of all FTA labor provisions. As a result, USTR and DOL systematically monitor and enforce compliance with FTA labor provisions for only a few priority countries. USTR's annual report to Congress about trade agreement programs provides limited details of the results of the agencies' monitoring and enforcement of compliance with FTA labor provisions.

What GAO Recommends

DOL should reevaluate its submission review time frame and better inform stakeholders about the submission process. USTR and DOL should establish a coordinated strategic approach to monitoring and enforcement labor provisions. USTR's annual report to Congress should include more information of USTR's and DOL's monitoring and enforcement efforts. The agencies generally agreed with the recommendations but disagreed with some findings, including the finding that they lack a systematic approach to monitor and enforce labor provisions in all FTAs. GAO stands by its findings.