The United States on Friday accused Guatemala of violating labor provisions of a free-trade agreement and said it would file a formal complaint that could lead to hefty monetary fines. "This is the first labor case the United States has ever brought against a trade agreement partner," U.S. Trade Representative Ron Kirk said. The action comes as U.S. President Barack Obama faces a challenge from Democratic lawmakers, especially in union-heavy states like Pennsylvania and Ohio, on plans to move forward with free-trade pacts with South Korea, Colombia and Panama. "We want to see the government of Guatemala take specific and effective action-including, if appropriate, legislative reforms-to improve systemic failures in enforcement of Guatemalan labor laws," Kirk said.
