UPDATE 2-US to get tough on trade, labor infractions-Kirk

* U.S. to insist trade partners fix labor problems

* Kirk says U.S. to enforce pacts with diplomacy

* U.S. will fight at WTO when necessary

* New initiatives planned for technical trade barriers (Changes dateline from PITTSBURGH; adds details from speech)

By Roberta Rampton

BRADDOCK, Pennsylvania, July 16 (Reuters) - The U.S. government will get tough with governments that don't live up to trade deals, including those with substandard labor practices, U.S. Trade Representative Ron Kirk said on Thursday.

The USTR and U.S. Labor and State departments will identify and investigate labor violations in countries with which it has free trade agreements and insist problems are fixed, instead of waiting for complaints to initiate enforcement, Kirk said.

"If they won't fix their labor problems, then we will exercise our legal options," Kirk told workers at a U.S. Steel Corp (X.N) plant on the outskirts of a city where leaders from the G20 group of nations will meet in September to discuss the sagging global economy. [ID:nN07343863]

"American workers cannot be asked and cannot be expected to compete against substandard labor practices," he said.

President Barack Obama promised during last year's election campaign to boost enforcement of trade deals and strengthen labor provisions, tapping into cynicism felt by Americans who have seen manufacturing jobs continually migrate overseas.

Enforcement will be the centerpiece of U.S. trade policy, Kirk said, adding the Obama administration believes more jobs can be created by boosting trade of U.S. goods and services.

"There's only so many more markets that we can open," Kirk said, explaining he will insist that trading partners abide by deals to expand trade.

Obama and Kirk have said they want to forge ahead on the Doha round of World Trade Organization talks and concluding three pending bilateral deals with Panama, Colombia and South Korea negotiated by the former Bush administration.

TRADE DEALS MEAN JOB LOSSES

But many Democrats blame trade deals for job losses, and have said it will be hard for the White House to champion new pacts given the recession and competing domestic priorities.

The U.S. steel industry has slashed production by half as the global economy slumps, and U.S. Steel Corp, one of the largest players in the sector, has complained that Chinese domestic subsidies have made the situation worse. [ID:nN2367824]

Sitting in the back row listening to Kirk, two steelworkers in bright orange safety suits and workboots said they want the government to do something to limit steel imports from China, where production has increased even as U.S. plants cut back.

"They ain't got no policies like we got," said Dave Stockett, a welder who has worked at the plant for 10 years, explaining China's labor and environment standards mean competitors there can make steel cheaper than U.S. plants.

Dan Wilson, a mechanic, was laid off for three months earlier this year when the company had no orders for its products. He is worried it could happen again.

"Are we going to have a job next year? That's what we want to hear," Wilson said.

Kirk said the government will use more forceful diplomacy to solve trade issues, similar to its recent approach with the European Union that put aside a long-standing dispute on beef. [ID:nN06154299]

The USTR plans new initiatives to lift technical barriers to farm and manufactured goods, he said.

The tack will be similar to how USTR enforces infractions in telecommunications trade and intellectual property rights, where it monitors problems, reports on them annually, and can withhold trade privileges from offenders, Kirk said.

Kirk also said the USTR will fight trade cases at the World Trade Organization and in bilateral forums when necessary.

The United States and the European Union recently launched a WTO challenge against Chinese export restrictions on raw materials used to make steel, aluminum and chemicals, complaining the measures keep costs low for Chinese steelmakers, giving them an unfair advantage.

"If we don't get it resolved (during ongoing talks), we are prepared to take the case to the next step," Kirk said. (Editing by Philip Barbara)