1. Regional trade agreements and decent work
Marva Corley-Coulibaly
Elizabeth Echeverria Manrique
ILO Research Department

2. Structure of Presentation
The trade-labour linkage and the ILO
Definition of labour provisions
Comparative analysis of labour provisions
Do labour provisions set framework conditions for decent work?
Questions for further exploration

3. The beginning of the trade and labour linkage: the ILO
Reasons:
Moral: charitable urge to constrain appalling working conditions (Servais, 2009)
Economic: Level the playing field (Valticos, 1977)
1919 ILO Constitution
Economic progress goes hand in hand with social justice, prosperity and peace.
“..the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries”.
If you desire peace, cultivate justice (“si vis pacem, cole justitiam”)

4. Trade and labour standards linkage: Consensus-Instruments
World Summit for Social Development (1995)
Singapore Ministerial Declaration (WTO-1996)
Declaration on FPRW and its follow-up (ILO, 1998)
World Summit of the United Nations (2005)
Declaration on Social Justice for a Fair Globalization (ILO, 2008)
2030 Agenda for Sustainable Development and SDGs (2015)
Decent work (1999)
Rejection of the use of labour standards for protectionist purposes
The comparative advantage of any countries, particularly that of low-wage developing countries, must in no way be put into question
Violation of fundamental principles and rights at work shall not be invoked or used a legitimate comparative advantage
ILO is the competent body to set and deal with international labour standards

5. ILO’s means of action Technical assistance
Upon request the ILO may: Advice, Implement
Indirectly: serve as source of information
Standards- related action
Technical assistance
Development cooperation
Capacity building
Knowledge building and sharing

6. Source: ESCAP

7. Definition of Labour Provision (ILO, 2016)
(i) any standard which addresses labour relations (for example, with reference to international labour standards) or minimum working conditions and terms of employment (for example, occupational safety and health (OSH), minimum wages and hours of work);
(ii) any mechanism to ensure compliance with the standards set, under national law or in the trade agreement; and
(iii) any framework for cooperative activities, dialogue and/or monitoring of labour issues (for example, development cooperation, established bodies for facilitating consultation between the parties or regular dialogue).

8. Number of trade agreements notified to the WTO that entered into force, by year

9. Reference to labour standards in TAs since 2009EU
EFTA
(2010) US
Canada
Chile
Korea NZ
ILO Declaration FPRW X
Peru,
Turkey, Colombia
Philipines, Hong- Kong, CPTPP
Effective implementation of national labour laws
Turkey,
Brunei-NZ- Singapore, Peru, Panama, Colombia, and CPTPP
Turkey, Colombia.
Australia
Korea, CPTPP
Non-derogation of labour laws to encourage investment/trade or use of labour laws for protectionist purposes x
Thailand, Brunei- NZ- Singapore, Hong-Kong China, CPTPP
Colombia, Australia
Malaysia, China, Korea, CPTPP
Effective implementation of ILO Conventions
Central America, Colombia-Peru and Korea, Canada (CETA), Mexico ( as per published text not in force) -
EU (CETA)
Turkey
Decent Work Agenda
Honduras, Peru, Colombia, Jordan, Panama* and CETA
Colombia
CPTPP

11. Mexico’s overview on labour
All 8 fundamental conventions have been ratified (only C. 98 has not been deposited at the ILO yet)
Governance conventions only 1 ratified: C144 (tripartite consultation, ILS)
Frequent issues at the ILO supervisory system
Application of Convention 87: Issues with freedom of association and the right to organise (CEACR, CAS, CFA)
But also non-discrimination: there is no recognition in the law of the principle of equal remuneration for men and women for work of equal value
New labour chapter in re-negotiated NAFTA (USMCA) includes steps and deadlines for implementation of reforms to effectively apply C. 98. This is not part of CPTPP.

12. Assessment of labour provisions How and whether LPs set framework conditions for decent work?
Cross-country macro-assessment: Based on 260 TAs reported to WTO (including 71 with LPs)
Supported by case study analysis & interviews: 50 stakeholders in more than 10 countries across regions.
Joint events: 5 academic institutions in Asia, Europe, North America and Latin America.

13. Key findings on LPs in Trade Arrangements
No Trade distortion:
LPs in TAs do not divert or decrease trade flows. TAs with and without, have same impact on trade.
Gender impacts:
LPs ease labour market access, particularly for working age women.
There is country-evidence on the narrowing of the gender wage gap.
Ratification of ILO Conventions
Institutional role and stakeholder involvement:
The key mechanism through which LPs have an impact is through strengthening of labour market institutions, supported by stakeholder involvement.

14. Both trade agreements with and without labour provisions boost trade to a similar extent
Estimated impact of trade agreements on trade (selected time periods, in %)
Source: ILO Research Department.

15. Labour provisions and labour markets
Ease labour market entry: Increase LFPR by 1.6pp
Stronger for women: narrowing of the gender participation gap by 1.1pp
Possible links: awareness raising; non discrimination
Source: ILO Research Department.

16. Trade agreements with LPs can reduce gender discrimination – when an accompanying policy mix is in place
Source: ILO Research Department.

17. Labour provisions: importance of institutions and stakeholders
Country/
Case
Agreement
Implementation Actions
Effects
CAFTA-DR
FTA with US (2004)
Pre-ratification
Capacity buidling to improve implementatin gaps
Stakeholder involvement
Monitoring &. progress reports
Some ratifications (El Salvador) & legislative changes (EPZs)
ILO Verification project: Increased MOL budget by 20%; inspectorates by 55%; Increased number of judges
Cambodia
Bilateral Textile Agreement with US ( )
Monitoring & progress reports
Positive incentives
Strengthened freedom of association
Decrease in gender wage gaps
Republic of Korea
FTA with EU
Monitoring
ILO conventions: 1 ratification and follow-up of others
Initiatives for cooperation in CSR and non-discrimination

18. Stakeholder involvement: what has been effective?
Synergy: labour advocates combine different mechanisms
Cross-border coalitions of civil society organizations are important

19. Supportive domestics policies are needed
Reinforcing LMI
Industrial relations
collective bargaining
Skills & Training Social protection
Engaging wtih the private sector
CSR
ILO MNE Declaration
SME upgrading
Improving productivity
Transition to formalization
Enabling business environment

20. Questions for further exploration
How to improve implementation of labour provisions?
How to measure & enhance sustained dialogue and commitment?
How improve transparency and accountability to stakeholders?
Which mechanisms have been most useful for dialogue and progess?
How can the ILO best assist it’s Members?
How can technical assistance and development cooperation be better tailored to partner countries?

21. Thank you