ICTSD PANEL: LABOUR PROVISIONS IN BILATERAL AND REGIONAL AGREEMENTS: CHALLENGES FOR THE MULTILATERAL TRADING SYSTEM WTO PUBLIC FORUM 2009 Pablo Lazo 1.

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Presentation transcript:

ICTSD PANEL: LABOUR PROVISIONS IN BILATERAL AND REGIONAL AGREEMENTS: CHALLENGES FOR THE MULTILATERAL TRADING SYSTEM WTO PUBLIC FORUM 2009 Pablo Lazo 1 1

TRADE AND LABOR: CONTEXT Accelerated Technological Innovation Economic Globalization Mutation in the world of labor Challenge: Is it possible to govern globalization? How? 3

TRADE AND LABOR: MULTILATERAL DEVELOPPMENT Copenhagen World Summit of Heads of State on Social Development, 1995 WTO: Singapore Declaration, 1996 ILO: Declaration on Fundamental Principles and Rights at Work and its Follow-up, 1998 UN ECOSOC: Ministerial Declaration, 2006 ILO: Declaration on Social Justice for a Fair Globalization, 2008

UNIVERSAL CONSENSUS Core labor standards ILO: competent body Labor standards should not be used with protectionist purposes It should not be questioned the comparative advantage of any country on the base of these instruments

FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK Freedom of association and collective bargaining Elimination of compulsory labor Abolition of child labor Non discrimination

EVOLUTION OF THE SOCIAL CLAUSE UNILATERALISM: GPS NAFTA US-JORDAN US-CAMBODIA US-CHILE (POST TPA) TRANSPACIFIC NEW ZEALAND-CHINA US-PERU (POST BIPARTISAN US AGREEMENT) UE-CARIFORUM CANADA-PERU 7

LABOR STANDARDS EN INTERNATIONAL TRADE UNILATERAL MECHANISMS: GSP BILATERAL OR REGIONAL SYSTEMS: NAFTA US-JORDAN US-CAMBODIA US-CHILE (AFTER TPA) TRANSPACIFIC NEW ZEALAND-CHINA US-PERU (AFTER BIPARTISAN US AGREEMENT) UE-CARIFORUM CANADA-PERU MULTILATERAL SYSTEMS: ILO OAS APEC OECD UN GLOBAL COMPACT WORLD BANK AND OTHERS ISO 26.000 (DRAFT) 8

FOUR MODELS US: trade sanctions EU: commitments under civil society supervision Canada: Monetary contributions New Zealqnd-Chile: Consultation and cooperative approach

PROVISIONS Separate agreements/labor clauses Decent work concept Core labor standards Enforcement Non derogation Transparency Cooperation Seriousness – different approaches Social actors participation

SOCIAL RESPONSABILITY ILO: Declaration on MNS OECD: Guidelines for MNE UN Global Compact ISO 26.000 (draft) 11

LINKAGE TRADE &LABOR: EXPERIENCE OF CHILE Canada MERCOSUR European Union USA TRANSPACIFIC PRChina Panama Peru Colombia Japan Australia Turkey

SOME FACTS OF THE PROCESS From unilateral to bilateral Increasing and deepening the linkage Risk of distortion Still no room in multilateralism No evidence of any labor case in an FTA arbitral panel No evidence of protectionist use of labor clauses No evidence of damages with social clauses Positive cooperation experiences Some cases related to GSP Consultations only in NAFTA 14

CONCLUSIONS Sound economic and trade policies can be compatible with sound social policies Economic growth is not compromised with core labor protections, nationally or internationally Labor engagement increases competitiveness

WWW.DIRECON.CL plazo@direcon.cl 16

THANK YOU!