AFL-CIO files China labor case with U.S. Trade Representative.

The AFL-CIO filed a case in mid-March with the Office of the U.S. Trade Representative (USTR) alleging that China's "repression" of its workers violates U.S. trade law. The move by the group is the first time that an entity other than a private company has sought punitive action against a U.S. trading partner under the provisions of Section 301 of the Trade Act of 1974. Complaints usually arise from a firm or group of firms that believe foreign competitors are receiving government subsidies or unusual tax breaks.

The AFL-CIO's 105-page petition contends that the Chinese government's "persistent pattern of repressing labor rights" has created "a huge pool of cut-rate labor that has displaced as many as 1.2 million American jobs." According to press reports, the AFL-CIO is asking the Bush Administration to impose quotas or tariffs to raise the cost of Chinese-made goods. The petition argues the tariffs "would pressure Beijing to comply with international labor laws" and asserts that "the scale and degree of government-engineered labor exploitation in China is such that it clearly distorts global labor markets. If not for China's repression of workers' rights, the extraordinary losses in U.S. manufacturing jobs and wages would be significantly curtailed."

U.S. Trade Rep. Robert Zoellick will have 45 days from the filing date of March 16 to decide whether to take the case.

AFL-CIO representatives said they expect "hundreds" of members of Congress to sign letters to President Bush over the next several weeks in support of the petition. The AFL-CIO stated it plans to highlight this petition and the Administration's subsequent decision during the months leading up to the presidential election.