WASHINGTON – United States Trade Representative Katherine Tai announced today the initiation of an investigation regarding Nicaragua’s acts, policies, and practices related to labor rights, human rights, and the rule of law. The investigation will be conducted under Section 301 of the Trade Act of 1974, as amended. The United States is concerned that Nicaragua is engaging in repressive and persistent attacks on labor rights, human rights, and the rule of law. The investigation initiated today is the first under Section 301 to investigate acts, policies, and practices that may violate labor rights, human rights, and dismantle the rule of law that may burden U.S. commerce, and complements a range of actions the United States is taking to mark International Human Rights Day today.
“The Biden-Harris Administration is firmly committed to a worker-centered trade policy to ensure our trade partnerships drive a race to the top for all workers and people,” said Ambassador Katherine Tai. “Unfortunately, numerous reports suggest the Government of Nicaragua is engaging in repressive acts that harm Nicaragua’s own workers and people, undermine fair competition, and destabilize our region. USTR will thoroughly investigate the alleged violations of labor rights and human rights, and dismantling of the rule of law.”
Numerous credible reports by the U.S. Government, as well as the United Nations Office of the High Commissioner for Human Rights, the Inter-American Commission on Human Rights, the International Labor Organization and the UN Group of Human Rights Experts on Nicaragua, document that the Ortega-Murillo regime in Nicaragua engages in labor rights and human rights violations and dismantling of the rule of law. These actions include: politically-motivated arrests and imprisonments, repression of members of religious groups and non-governmental organizations, extrajudicial killings, cruel, inhuman or degrading treatment, restrictions on freedom of expression and movement, violence against members of marginalized groups, repression of freedom of association and collective bargaining, forced labor, human trafficking, eliminating legislative and judicial independence, spurious seizures of property, arbitrary fines and rulings, and other harmful acts. Such actions exacerbate worker exploitation and diminish economic growth and trade opportunities.
The United States has a deep commitment to shared prosperity in the Central American region. Despite continued U.S. engagement, the Government of Nicaragua has not responded to concerns raised by the United States or others to serious allegations of labor and human rights abuses and the dismantling of the rule of law. Through this investigation, the United States will seek to address and resolve those long-standing and deep-rooted concerns to ensure U.S. companies and workers are treated fairly and with equal respect under a rule of law system.
As explained in a formal notice, USTR is seeking public comments and will hold a public hearing in connection with this investigation.
Background
Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b) of the Trade Act, the Trade Representative may self-initiate an investigation under Section 301.
The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with Nicaragua in connection with the investigation.
A docket for comments regarding the investigation is available here.
A docket for requests to appear at the public hearing to be held in connection with this investigation is available here.
###
