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Resolution of U.S.-Guatemala Dispute May Obviate CAFTA Labor Arbitration

It looks like the first state-to-state arbitration under the U.S.-Central America Free Trade Agreement (CAFTA) may have fizzled out.

In August of 2011, I reported in this space that the United States of America was initiating arbitration against the Republic of Guatemala.

The U.S.A. turned to arbitration after determining that Guatemala was failing to enforce its own labor laws, thus running afoul of pledges made in the CAFTA itself.

In principle, the U.S.A. v. Guatemala arbitration should have played out rapidly, with Chapter 20 of the CAFTA providing for a fast-track arbitration process that is geared to take a mere 8 months to determine whether a government is not complying with its CAFTA [...]

Fast-track arbitrations can be slow to get rolling

It looks like The Amazing Kreskin can rest easy.

Last August, I tried my hand at forecasting the future, and I’m not sure I brought credit to the field of prognostication.

In my earlier blog post, I’d commented on a novel state-to-state arbitration initiated by the United States against the Republic of Guatemala.

(The U.S. accuses Guatemala of failing to enforce its own labour laws, thus placing the latter country in possible violation of its obligations under the labour chapter of the U.S.-Central American Free Trade Agreement (CAFTA).)

After looking at the fast-track arbitration sketched out in CAFTA Chapter 20, I predicted that the arbitral proceeding might be wrapped up in as little [...]

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