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Trump Administration Lifts Ban on Sugar Company Central Romana Over Forced Labor

by Ana Swanson and James Wagner
March 23, 2025
in Finance
Reading Time: 6 mins read
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The Trump administration on Monday quietly rescinded an order that had blocked a serious Dominican sugar producer with political ties to President Trump from transport sugar to america due to allegations of compelled labor on the firm.

U.S. Customs and Border Safety modified a “withhold launch order” that had been issued in 2022 for uncooked sugar and sugar merchandise made by the Central Romana Company, blocking exports to america from the corporate. The Customs web site now lists the order as “inactive.”

Labor proper teams expressed frustration on the change, saying that Central Romana, whose sugar had been offered in america below the Domino model, had not considerably improved its labor practices.

“We haven’t seen a big sufficient change to warrant modification,” stated Allie Brudney, a senior workers lawyer at Company Accountability Lab, which has been monitoring working situations on Dominican sugar farms. “It is a disappointing consequence, however we are going to proceed to help staff of their combat for higher situations.”

A U.S. official, who declined to be named as a result of the particular person was not licensed to talk publicly, stated that the choice to rescind the rule and permit the corporate to start exporting had not adopted established processes. The official cited Central Romana’s highly effective possession, and stated that the choice was most certainly made on the prime ranges of U.S. Customs and Border Safety.

Hilton Beckham, an assistant commissioner of public affairs for Customs and Border Safety, confirmed that the order had been modified, saying that the choice adopted “documented enhancements to labor requirements, verified by impartial sources.” She declined to reveal these sources, citing confidentiality causes.

Ms. Beckham added that “Central Romana has taken motion to deal with the considerations outlined within the preliminary WRO,” referring to the withhold launch order, and that customs officers remained “dedicated to imposing U.S. legal guidelines prohibiting compelled labor and can proceed to intently monitor compliance.”

Central Romana stated in an announcement that the corporate was “happy to be taught that the administration of the U.S. authorities has reviewed all of the shared proof and agreed that there isn’t any foundation to proceed” the withhold launch order. Over the previous two years, it had offered U.S. officers with impartial audits from outdoors organizations and different documentation of its practices, it stated.

Central Romana, the most important landholder and personal employer within the Dominican Republic, is partly owned by the Fanjul household, which has been influential in U.S. politics for many years.

In 2024, the Fanjul Company gave a $1 million donation to Make America Nice Once more, a political motion committee supporting Mr. Trump, in addition to a $413,000 donation to the Republican Nationwide Committee, in keeping with OpenSecrets, a nonprofit that tracks cash in politics. The company additionally made smaller donations to Democrats.

For many years, Central Romana has confronted allegations from labor rights teams that it subjected its staff to poor labor situations. The Biden administration banned imports from the corporate in 2022, saying that it had info indicating that the corporate had taken benefit of weak staff, improperly withheld their wages, compelled them to do extreme extra time and created abusive working and dwelling situations.

Civil society teams have additionally complained of Central Romana forcibly evicting households from properties, threatening staff who complain about working situations and offering dilapidated housing with out clear water or electrical energy.

Central Romana has publicly defended its practices, saying that it had been investing for years to enhance the dwelling situations of its staff and that it supplies one of the best situations within the trade.

Lots of the firm’s staff are Haitian migrants, a few of whom have been born on Central Romana farms. As a result of the Dominican Republic doesn’t supply these staff citizenship, they’re uniquely weak, unable to hunt different employment and in worry of deportation, civil society teams say.

A congressional delegation that visited the Dominican Republic and met with staff final summer time stated that the nation had made progress towards addressing a number of the worst incidents, together with baby labor and human trafficking, but additionally that abuses within the sector continued.

A examine put out by the Division of Labor in September discovered continued proof of abusive working situations within the sector. The examine stated that following the 2022 ban, different Dominican sugar farms had changed Central Romana as a essential supply of exports to america, however that these farms most certainly had related points with compelled labor.

In a information convention Monday, the Dominican president, Luis Abinader, stated that enterprise was now “again to regular.”

“Central Romana can now export prefer it’s all the time completed,” Mr. Abinader stated, calling it “optimistic information.”

Requested about why the restrictions had been lifted, Mr. Abinader stated it was “a choice of the American authorities. We weren’t concerned in that call.”

Central Romana is the most important sugar producer within the Dominican Republic, producing about 60 p.c of the nation’s sugar, in keeping with the U.S. Division of Agriculture. Within the Nineteen Eighties, it was acquired by members of the Fanjul household, Cuban exiles who began sugar cane farms in Florida.

The Fanjuls have been distinguished donors to each Democrats and Republicans, together with the Bushes, the Clintons and Marco Rubio when he was a Florida senator, earlier than changing into Mr. Trump’s secretary of state. The Fanjul household, which additionally based Florida Crystals Company, is part proprietor of American Sugar Refining, the world’s largest sugar refinery, which sells sugar below model names together with Domino and C&H Sugar.

In 2023 and 2024, Central Romana disclosed that it had paid greater than $1.1 million to foyer Congress, customs officers and others on points within the sugar sector, together with the 2022 ban over the compelled labor allegations.

The Fanjuls tried to leverage their political ties to get the order reversed. In an August 2023 letter to Chris Dodd, a former senator who was then a particular adviser to the U.S. Division of State, Alfonso Fanjul, the chief govt of Central Romana, stated the order had triggered “irreparable harm” to the corporate and his household’s fame and was with out foundation.

Mr. Fanjul wrote that the corporate had carried out an intensive audit and concluded that there was no compelled labor in its operations.

“Chris, we now have been mates for a very long time,” Mr. Fanjul wrote within the letter, which was seen by The New York Instances. “I’m asking on your assist in requesting CBP to raise its sanctions on our firm, which not solely impacts it however the monetary well-being of our staff who’re struggling because of the WRO.” (There is no such thing as a proof that Mr. Dodd intervened within the course of.)

In a letter to U.S. officers final March, greater than 30 human and labor rights organizations expressed concern over efforts by Central Romana to keep away from remediating its labor practices below the federal government’s compelled labor ban.

Employees had reported that the corporate’s efforts to repair situations have been “superficial” and that some enhancements Central Romana had publicly introduced, like offering medical health insurance and electrical energy for firm housing, had been overstated and have been nonetheless unavailable to giant numbers of staff, the teams stated.

“Practically each particular person interviewed in December 2023 acknowledged that in the event that they have been in a position to go away, they’d,” the letter learn.

In distinction, Central Romana’s efforts to switch the order by political strain had been “substantial” and “deeply regarding,” the teams stated.

“If this technique proves profitable for Central Romana, it won’t solely hurt and disillusion staff on this case, however it’ll additionally undermine the efficacy” of compelled labor enforcement extra typically, the letter learn.



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Tags: administrationBanCentralcompanyforcedlaborliftsRomanasugarTrump
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