Business
Trump Administration Lifts Ban on Sugar Company Central Romana Over Forced Labor
The Trump administration quietly rescinded an order on Monday that had blocked a major Dominican sugar producer with political ties to President Trump from shipping sugar to the United States because of allegations of forced labor at the company.
U.S. Customs and Border Protection modified a “withhold release order” that had been issued in 2022 for raw sugar and sugar products made by the Central Romana Corporation, blocking exports to the United States from the company. The Customs website now lists the order as “inactive.”
Labor right groups expressed frustration at the change, saying that Central Romana, whose sugar had been sold in the United States under the Domino brand, had not significantly improved its labor practices.
“We haven’t seen a significant enough change to warrant modification,” said Allie Brudney, a senior staff attorney at Corporate Accountability Lab, which has been monitoring working conditions on Dominican sugar farms. “This is a disappointing outcome, but we will continue to support workers in their fight for better conditions.”
A U.S. official, who declined to be named because the person was not authorized to speak publicly, said that the decision to rescind the rule and allow the company to begin exporting had not followed established processes. The official cited Central Romana’s powerful ownership, and said that the decision was most likely made at the top levels of U.S. Customs and Border Protection.
Hilton Beckham, an assistant commissioner of public affairs for Customs and Border Protection, confirmed that the order had been modified, saying that the decision followed “documented improvements to labor standards, verified by independent sources.” She declined to disclose those sources, citing confidentiality reasons.
Ms. Beckham added that “Central Romana has taken action to address the concerns outlined in the initial WRO,” referring to the withhold release order, and that customs officials remained “committed to enforcing U.S. laws prohibiting forced labor and will continue to closely monitor compliance.”
Central Romana said in a statement that the company was “pleased to learn that the administration of the U.S. government has reviewed all the shared evidence and agreed that there is no basis to continue” the withhold release order. Over the past two years, it had provided U.S. officials with independent audits from outside organizations and other documentation of its practices, it said.
Central Romana, the largest landholder and private employer in the Dominican Republic, is partly owned by the Fanjul family, which has been influential in U.S. politics for decades.
In 2024, the Fanjul Corporation gave a $1 million donation to Make America Great Again, a political action committee supporting Mr. Trump, as well as a $413,000 donation to the Republican National Committee, according to OpenSecrets, a nonprofit that tracks money in politics. The corporation also made smaller donations to Democrats.
For decades, Central Romana has faced allegations from labor rights groups that it subjected its workers to poor labor conditions. The Biden administration banned imports from the company in 2022, saying that it had information indicating that the company had taken advantage of vulnerable workers, improperly withheld their wages, forced them to do excessive overtime and created abusive working and living conditions.
Civil society groups have also complained of Central Romana forcibly evicting families from homes, threatening workers who complain about working conditions and providing dilapidated housing without clean water or electricity.
Central Romana has publicly defended its practices, saying that it had been investing for years to improve the living conditions of its employees and that it provides the best conditions in the industry.
Many of the company’s employees are Haitian migrants, some of whom were born on Central Romana farms. Because the Dominican Republic does not offer these workers citizenship, they are uniquely vulnerable, unable to seek other employment and in fear of deportation, civil society groups say.
A congressional delegation that visited the Dominican Republic and met with workers last summer said that the country had made progress toward addressing some of the worst incidents, including child labor and human trafficking, but also that abuses in the sector continued.
A study put out by the Department of Labor in September found continued evidence of abusive working conditions in the sector. The study said that following the 2022 ban, other Dominican sugar farms had replaced Central Romana as a main source of exports to the United States, but that those farms most likely had similar issues with forced labor.
In a news conference Monday, the Dominican president, Luis Abinader, said that business was now “back to normal.”
“Central Romana can now export like it’s always done,” Mr. Abinader said, calling it “positive news.”
Asking about why the restrictions had been lifted, Mr. Abinader said it was “a decision of the American government. We were not involved in that decision.”
Central Romana is the largest sugar producer in the Dominican Republic, producing about 60 percent of the country’s sugar, according to the U.S. Department of Agriculture. In the 1980s, it was acquired by members of the Fanjul family, Cuban exiles who started sugar cane farms in Florida.
The Fanjuls were prominent donors to both Democrats and Republicans, including the Bushes, the Clintons and Marco Rubio when he was a Florida senator, before becoming Mr. Trump’s secretary of state. The Fanjul family, which also founded Florida Crystals Corporation, is a part owner of American Sugar Refining, the world’s largest sugar refinery, which sells sugar under brand names including Domino and C&H Sugar.
In 2023 and 2024, Central Romana disclosed that it had paid more than $1.1 million to lobby Congress, customs officials and others on issues in the sugar sector, including the 2022 ban over the forced 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 special adviser to the U.S. Department of State, Alfonso Fanjul, the chief executive of Central Romana, said the order had caused “irreparable damage” to the company and his family’s reputation and was without basis.
Mr. Fanjul wrote that the company had carried out an extensive audit and concluded that there was no forced labor in its operations.
“Chris, we have been friends for a long time,” Mr. Fanjul wrote in the letter, which was viewed by The New York Times. “I am asking for your help in requesting CBP to lift its sanctions on our company, which not only impacts it but the financial well-being of our workers who are suffering as a result of the WRO.” (There is no evidence that Mr. Dodd intervened in the process.)
In a letter to U.S. officials last March, more than 30 human and labor rights organizations expressed concern over efforts by Central Romana to avoid remediating its labor practices under the government’s forced labor ban.
Workers had reported that the company’s efforts to fix conditions were “superficial” and that some improvements Central Romana had publicly announced, like providing health insurance and electricity for company housing, had been overstated and were still unavailable to large numbers of workers, the groups said.
“Nearly every person interviewed in December 2023 stated that if they were able to leave, they would,” the letter read.
In contrast, Central Romana’s efforts to modify the order through political pressure had been “substantial” and “deeply concerning,” the groups said.
“If this strategy proves successful for Central Romana, it will not only harm and disillusion workers in this case, but it will also undermine the efficacy” of forced labor enforcement more generally, the letter read.
Business
Commentary: The UC faculty just won a big court victory over Trump. But why didn’t UC join their lawsuit?
On Nov. 14 the faculty and staff of the University of California won a significant victory over President Trump in his effort to fine UCLA $1.2 billion for resisting his efforts to bend the university to his ideological demands.
Finding that the plaintiffs submitted “overwhelming evidence” that Trump and his cabinet members pursued a campaign of cutting off government funding with the goal of “bringing universities to their knees and forcing them to change their ideological tune,” federal Judge Rita Lin of San Francisco blocked the fine and nearly $600 million in funding cuts. She ordered the money to start flowing again.
Lin’s ruling resembles those by other federal judges who blocked Trump’s funding cutoffs. Faculty and staff representatives, with the American Assn. of University Professors as the lead plaintiff, justly celebrated the UC injunction, even though it’s likely that the government will appeal.
It may be hard for an educational institution to ride this out until 2029. For an institution that budgets on an annual basis, three years is a long time.
— Dan Schnur, UC Berkeley
But two entities with an interest in the case’s outcome have been silent: the state of California and UC itself. Neither joined the AAUP lawsuit, which was filed in September, and neither has commented since.
It’s not as though the state and the university are blind to the potential impact of Trump’s funding cutoff. When Trump’s demands and threats were made public in August, Gov. Newsom termed them “extortion” and threatened to sue. UC President James B. Milliken said the announced cuts would be a “death knell for innovative work that saves lives, grows our economy and fortifies our national security.”
Addressing the UC Board of Regents at its meeting Wednesday, Milliken stated that the university system still faces the loss of more than $1 billion in federal research funding, but didn’t mention the AAUP lawsuit.
UC reportedly has continued negotiations with the White House. A UC spokesperson wouldn’t comment on any such talks, even to confirm them. A spokesman for Gov. Newsom said he’s closely watching the numerous court cases challenging Trump’s funding threats, and “he’s pleased with the recent court rulings affirming that Trump’s assault on California’s world-class research institutions was reckless and illegal.”
Let’s keep in mind what’s at stake in this battle. The University of California is the premier public university system in the nation. It’s the second-largest employer in the state and one of the most important providers of healthcare. The productivity of its research is spectacular. Much of the universities’ work is supported by the government — $17 billion a year, including matching Medicaid and Medicare funding and student aid.
“We were hopeful that the UC system would defend itself legally,” says Veena Dubal, a law professor at UC Irvine and general counsel to the AAUP. After UCLA published the administration’s 27-page list of demands in August, she says, the AAUP decided it couldn’t wait any longer: “We couldn’t not sue, they were so outrageous.”
The demands included bans on diversity programs, public demonstrations across much of the campus and provisions for transgender students. UCLA also would be required to refuse admission to foreign students “likely to engage in anti-Western, anti-American, or antisemitic disruptions,” and to comply with Trump’s ban on “gender ideology” — that is, defining males and females as anything other than the sex they were assigned at birth.
The state and the UC system haven’t entirely avoided legal jousting with Trump. California led seven other states into federal court to challenge the Dept. of Education’s termination of $65 million in grants funding programs that included diversity, equity and inclusion initiatives. They won at the trial level, but the Supreme Court stayed that ruling on grounds that the case may have been brought in the wrong federal court.
The regents also joined a lawsuit brought by the Assn. of American Universities and 13 other universities challenging the Dept. of Health and Human Services limit on reimbursements for overhead costs on government-funded research, which would cost universities billions of dollars. They won at the trial level, but the government appealed that ruling. The state also sued Trump or participated in lawsuits on other topics.
One can understand, even sympathize with, the reluctance of UC to pursue a courtroom fight over Trump’s demands. UC faces the same quandary as other institutions that have tried to reach accords with the administration.
Trump has almost unlimited tools at his discretion to harass his adversaries for years to come through endless “investigations” of purported statutory violations, among other things. Courtroom battles take time and money, resources that may never be recovered. Plus with a pro-Trump majority on the Supreme Court, ultimate victory is nothing like a certainty.
And while Trump’s term won’t last beyond January 2029, at which point his anti-university campaign might end, that may be cold comfort for institutions facing an immediate financial crisis.
“It may be hard for an educational institution to ride this out until 2029,” says Dan Schnur, a veteran political consultant on the faculty of UC Berkeley’s Institute of Governmental Studies. “For an institution that budgets on an annual basis, three years is a long time, and for a student, it’s three-fourths of an undergraduate experience.”
That brings us to the case the UC faculty and staff made in court. It’s as clear and concise a description of the noxious campaign Trump has conducted against American higher education that one will find anywhere. It was accepted almost in its entirety by Judge Lin.
The administration consistently has portrayed the funding cutoffs as a response to what it claims to be pervasive antisemitism at UCLA and other targeted campuses. Yet as federal Judge Allison D. Burroughs of Boston found in September when she blocked Trump’s grant terminations against Harvard, it’s “difficult to conclude anything other than that [the government] used antisemitism as a smokescreen for a targeted, ideologically-motivated assault on this country’s premier universities.”
Indeed, the UC plaintiffs show that the funding cutoffs were motivated purely by ideology, and flagrantly infringed on free speech rights. Just a week after Trump’s inauguration, the White House issued an order suspending all financial disbursements that involved “DEI, woke gender ideology, and the green new deal.” (“DEI” refers to programs aimed at diversity, equity and inclusion, a favored target of the right.)
The faculty lawsuit quotes Leo Terrell, an assistant attorney general for civil rights and a named defendant, telling Fox News, “The academic system in this country has been hijacked by the left, has been hijacked by the Marxists.” He said, “We’re gonna bankrupt these universities. We’re gonna take away every single dollar.” In an interview he said he had “targeted 10 schools. Columbia, Harvard, Michigan, UCLA, USC… We’re going to take away [their] funding.”
The lawsuit positions the administration’s campaign against UCLA against its similar attacks on funding at Columbia, Brown and Harvard. It also points to the folly of trying to settle with Trump out of court.
Columbia was among the first universities to settle with Trump — it would ultimately agree to $221 million in payments and to give the government extraordinary oversight of its hiring, pedagogical and social policies. Initially that was a response in March to a government threat to block some $400 million in federal grants.
But even after its initial capitulation in March Trump continued to block $1.2 billion in funding until Columbia agreed to additional demands in July.
As Judge Lin described the government campaign against UCLA and other universities launched by the White House, it starts when “one or more … agencies open civil rights investigations into a university…. Before the investigations are concluded, Funding Agencies cancel large amounts of federal funding.” Then the Justice Department offers to settle with the targets “in exchange for further burdening faculty, staff, and student speech.”
It’s theoretically possible that the Trump administration could make its funding cutoffs stick if it follows the procedures enshrined in law for terminating federal grants (and it may yet prevail in appeals to the Supreme Court).
The rules require government agencies to issue a notice of possible violation and attempt to negotiate a settlement and hold a hearing, then file a report with the House and Senate specifying “the circumstances and grounds for such action” and wait at least 30 days more before canceling any funding. The cancellations can apply only to the specific program deemed to be violating the law.
The goal of these safeguards, Lin observed, is to protect grant recipients from “‘vindictive’ or ‘punitive’” actions by the government. In these cases, the government followed none of the mandated procedures.
The administration‘s defense, in part, is that the funding cutoffs are entirely within its discretion and can’t be reviewed by a judge, assertions Lin specifically rejected. The administration also stated that the August demand letter to UCLA was merely an “opening settlement offer” in ongoing “confidential settlement negotiations” with the university.
Given the findings from federal judges that Trump has flouted the legal safeguards against abrupt and arbitrary grant cancellations in favor of illicit bullying, the question facing universities trying to negotiate their way out is: What is there to negotiate? The record so far indicates that no settlement will fully satisfy Trump or his anti-woke warriors; only judges can bring the campaign to a halt.
It’s certainly true that in the short run, Trump’s targets will suffer great pain. He knows well that they’re vulnerable to blunt force. “With every day that passes,” Lin observed, “UCLA continues to be denied the chance to win new grants, ratcheting up [the government’s] pressure campaign.”
In the long run, however, there are limits to how much an educational institution can concede.
One is tempted to recall what Michael Corleone said in “The Godfather Part II” when he was being bullied by the corrupt Sen. Pat Geary into paying a bribe: “My offer is this,” he said. “Nothing.”
It may not be so easy for even powerful universities to take such an uncompromising stand. But it may be necessary.
Business
Skechers investors say they were forced to take a bad deal when the company went private
Skechers investors are suing company executives and Skechers owner 3G Capital over what they say was an unfair sale price in an acquisition earlier this year.
3G Capital took the Manhattan Beach-based sneaker company private in a $9.4-billion deal that closed in September and reflected a share price of $63 per share.
In a class action complaint filed this month in Delaware Chancery Court, hedge funds and other large Skechers investors accused the company and 3G Capital of arranging a non-independent deal that shortchanged minority shareholders.
The deal undervalued the company as its shares were taking a beating because of a volatile federal tariff policy, the complaint said. The deal also benefited Skechers President Michael Greenberg and other controlling shareholders, according to the plaintiffs.
Plaintiffs seeking a higher share price were unable to reach an early settlement with Skechers after the company made an offer that was slightly higher than the original price, Bloomberg reported this week.
According to court documents, 3G Capital had offered a price of $73 per share in March this year, but lowered its offer after Trump’s tariff “liberation day” on April 2.
Investors are now pressing ahead with the case, according to Bloomberg.
Skechers said it would not comment on pending legal matters.
Skechers was one of many footwear and apparel companies that sounded the alarm when Trump passed steep import taxes on countries including China and Vietnam, where many Skechers products are made.
The company’s stock price fell 23% in early April after the tariffs were announced. Shares bounced back up 30% after the 3G Capital deal was announced.
Around the time of the acquisition, 3G Capital and Skechers said the purchase price represented a 30% premium to the company’s 15-day volume-weighted average stock price.
After the deal closed, about 60 investment pools managed by various firms filed to challenge the price of $1.3 billion worth of shares.
Plaintiffs in the case say Chief Executive Robert Greenberg, along with his son Michael, the company’s president, worked closely with 3G Capital to tailor an acquisition deal that worked for them amid tariff chaos.
“The merger was carefully structured to allow the Greenberg stockholders to monetize a substantial amount of their personal Skechers’ holdings,” the court complaint said.
Business
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