Core Labour Standards and International Trade

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Kofi Addo

Core Labour Standardsand International Trade

Lessons from the Regional Context

Kofi AddoInternational BaccalaureateGenevaSwitzerland

ISBN 978-3-662-44618-8 ISBN 978-3-662-44619-5 (eBook)DOI 10.1007/978-3-662-44619-5Springer Heidelberg New York Dordrecht London

Library of Congress Control Number: 2014956663

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I dedicate this book to the women in my life,present and past:my wife, Boatemaa, and daughters, Azariah,Konadu, and Boatengmy mother, Doris Prempeh Owusumy late grandmother, Mercy Gladys Anin

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Short Description of Book and About Author

The history of the linkage between the core labour standards (CLS) and interna-

tional trade dates back roughly 150 years and has recently become one of the most

vexing issues facing policymakers. At the heart of the debate is the question

whether or not trade sanctions should be imposed on countries that do not respect

the CLS as embodied in multilateral conventions administered by the International

Labour Organization (ILO). Concretely, this would entail inserting a social clause

in the World Trade Organization (WTO) rules and would trigger the imposition of

sanctions on those countries that do not adhere to the CLS.

This book examines the labour standard provisions in a number of regional and

bilateral trade agreements and assesses the potential of using the relevant clauses in

these trade agreements as a benchmark for a multilateral approach. Based on the

lessons learned from the regional model, the book proposes a global labour and

trade framework agreement (GLTFA) combined with a joint ILO/WTO enforce-

ment mechanism to resolve the contentious issue of the link between the CLS and

international trade.

Kofi Addo is a policy advisor with the Governance and Executive Support

Department of the International Baccalaureate Organization. He holds a Ph.D. in

law from the University of Bern, Switzerland.

vii

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Foreword

The status of labour and human capital in the process of production of products and

of international trade ever since has been at the heart of economic theory and

political debate. In domestic law, labour standards pertain to the core of law

defining an economic system and the relationship of factors of production in a

particular country. In international law, this is much less the case. While trade

relations are legally defined in great detail in treaties and subject to law enforce-

ment in the WTO, labour standards have been largely developed on the basis of soft

law. The wide body of international agreements and conventions adopted by

Members of the International Labour Organization (ILO) does not impose strict

standards and leaves implementation to a process of reporting and monitoring. The

resulting imbalance triggered a broad debate as to whether labour standards should

be included in the multilateral framework of GATT and the WTO. Efforts so far

failed to establish such linkages in explicit terms, while progress was made on the

level of regional integration and preferential trade agreements.

The book looks into these regional and preferential efforts. In particular, it focuses

on the NAFTA North American Agreement on Labour Cooperation (NAALC) and

the new generation of preferential agreements concluded by the EU with ACP

countries, especially the Cotonou Agreement and developments within the incoming

Economic Partnership Agreements (EPAs). Upon exploring these and other prefer-

ential instruments, the work turns to the question to what extent these experiences

offer the groundwork for a subsequent multilateralization of disciplines on labour

relations in international law, combining ILO and WTO law. The author expounds

the fruitful relation of trade liberalization, enhancing welfare, poverty reduction and

enhanced labour relations. He takes issue with currently prevailing views in devel-

oping countries that binding labour standards reduce comparative advantages and

lays the ground for a fresh look at what is a complex issue, both in terms of political

economy and law.

The book is based upon a Ph.D. thesis in lawwritten within the doctoral programme

of the World Trade Institute and submitted to the Faculty of Law of the University of

Bern, Switzerland, in 2010. It was a privilege to work with Kofi Addo, benefiting from

ix

his experience in the field and his dedication to the cause of improving labour

conditions in the process of globalization in particular in developing countries. The

present book makes an important contribution in laying the groundwork for the

process of multilateralizing labour standards in the trading regime in coming years,

and perhaps decades, to come.

Bern, Switzerland Thomas Cottier

July 2014

x Foreword

Preface

Historically the issue of the correlation between core labour standards (CLS) and

international trade, it has been one of the most vexing issues facing global trade

policymakers—how to accommodate the growing consensus on the need to pro-

mote CLS within the framework of the multilateral trading system. The nature of

the subject raises the issues of whether CLS need to be part of a global set of trade

rules and whether doing so would be in the developmental interest of workers. The

sensitive nature of the issue, and the fact that it has been recurring for a 150 years

without any meaningful solution, makes the adoption of a novel approach very

important as the solutions being offered at the multilateral level do not seem to

satisfy both the supporters and critics of such a linkage.

Whilst developing countries oppose the inclusion of labour standards in the

WTO Agreement, they are, however, entering into bilateral, free trade agreements

or regional trade agreements, which include clauses on labour provisions among

themselves and also with developed countries, notably the United States of America

and the European Community.

Whilst there are some benefits to the inclusion of the core labour standards in

these regional arrangements, there is the need for an international legal framework

that would improve and strengthen the capacities of parties to these arrangements

(especially the developing countries), as a means of ensuring that the dots between

social, legal, and economic progress are connected, and also consolidate and sustain

growth for employment creation. This is an issue that not only has economic

consequences but also has legal, social, and political implications. And a discussion

of the issue will show how these factors relate to the debate as a whole.

This book considers whether the labour standard provisions in some of the

regional trade agreements could act as a stimulus for the multilateral system and

whether the regional model that has acted as a laboratory for other areas in the

multilateral trading system could again be relied upon to bridge the gap between the

opposing views on the correlation between labour standards and trade. An assess-

ment of the labour provisions in a number of RTAs is made to determine whether

those provisions are an effective means of protecting labour standards in the

xi

specific countries that are party to those agreements. The most prominent of these

agreements is the North American Free Trade Agreement (NAFTA) side agree-

ment, the North American Agreement on Labor Cooperation (NAALC). Even

though there are significant limitations that hinder its effectiveness as a tool of

social change, its use since 1994 has enabled the rise of strong cross-border

cooperation and also drawn the public attention to the respect for the core labour

standards.

Regional trade agreements have become a testing ground for linking labour

standards and international trade. The successes and failures of this model could

hold the key in making trade work for development. This book proposes a legal

framework based on the structure of recent international framework agreements

(IFAs) that could act as a template to be adapted by signatories to these regional

arrangements to ensure that the principles that have guided the ILO and to which

the international community subscribe to are met. It is also a means to ensure that

social objectives are taken into account in economic and trade policy decision-

making—a simple but effective mechanism of resolving a contentious issue. The

framework is structured on the ILO tripartite system (compared to agreements

between governments), which has a greater potential to lead to constructive social

dialogue and make a positive contribution to respect for the core labour standards.

In proposing a blueprint or international legal framework template based on the

model in the regional trade agreements and also the IFAs, we are cognisant of the

shortcomings. However, this approach appears to be the best tool available in

reaching consensus on this vexing issue. The key is how the international commu-

nity translates the lessons learned at the regional level onto the global scene and

make the regional approach a force for good in promoting policy coherence at the

multilateral level.

Such an agreement has a greater possibility of extending the protection accorded

under the CLS beyond workers involved in production for export and workers who

work for multinationals to also workers involved in domestic production. This in a

way would help achieve the balance of equities both within the multilateral

economic rule-making process1 and through the incorporation of social concerns

and also at the national and enterprise levels.

Geneva, Switzerland Kofi Addo

1Abbott, F. M. (2000). Distributed governance at the WTO–WIPO: A evolving model for open-

architecture integrated governance. Journal of International Economic Law, 3, 65.

xii Preface

Acknowledgements

Foremost, I would like to express my sincere gratitude to my advisor Prof. Thomas

Cottier for his patience, motivation, enthusiasm, and immense knowledge. His

encouragement, dedicated involvement, and guidance helped me during the period

of research and writing of this book. I cannot imagine having a better mentor for my

doctoral research.

I would also like to thank Prof. Steve Charnovitz for his insightful comments on

the earlier version of this book. His expert knowledge of the subject matter and the

hard questions on the draft was instrumental in getting the book to its present state.

Special thanks to Anke Seyfried (Associate Editor, Law) for her kind assistance

in getting the book to this stage. Thanks also to Julia Pelikan (Editorial Assistant,

Law) for her wonderful editorial work and Dagmar Kern (Project Coordinator,

Production). Thanks to all staff at Springer, who were involved in the publication

process.

I thank Dr. Edwini Kwame Kessie for introducing me to the world of trade law. I

am grateful to Donata Rugarabamu for reading the first draft of this book and for her

comments. I also express my appreciation to Karen Curtis for the opportunity to

work at the ILO, and also Dr. Konstantinos Papadakis for directing me to the

international framework agreements. Working at the ILO gave me firsthand expe-

rience in understanding how international framework agreements could be adapted

to the core labour standards and international trade issue.

To my mother, Doris Prempeh Owusu, who taught me the value of education,

perseverance, and encouraged me to stay the course, thank you, as well as to my

uncles, David Samson Effah and Felix Charles Kharsa, whose love of the law made

me choose the legal path. To my wider family, in particular my sisters: Joyce and

Linda, for their encouragement and support throughout the years.

I likewise thank my friend George “Billy” Addai for his encouragement during

the years of writing, and for being a great and wonderful friend for more than three

decades.

xiii

Finally, I wish to express my deepest gratitude and love to my children, Azariah,

Konadu, and Boateng, and my wife, Boatemaa—deepest thanks for her loving

support and for being the perfect partner for over a decade. My debt to her is

immeasurable, as is my deepest love.

xiv Acknowledgements

Table of Cases

1. International Court of Justice

Nicaragua Case, 1986 I.C.J. Rep. 14, 97.

Continental Shelf Case (Libya v. Malta), 1985 I.C.J. Rep. 13, 29.

Barcelona Traction, Light and Power Co. Ltd. (Belgium v. Spain) Second Phase,[1970] I.C.J. Rep. 4.

North Sea Continental Shelf Cases (F.R.G v. Den., F.R.G. v. Neth.), 1969

I.C.J. Rep. 3,

Asylum case (Colombia v. Peru), 1950 I.C.J. 276, at 277 (20 November).

2. WTO Panels and Appellate Body

Argentina – Footwear (EC) Appellate Body Report, Argentina – SafeguardMeasures on Imports of Footwear, WT/DS121/AB/R, adopted 12 January

2000, DSR 2000:I, 515

Argentina – Footwear (EC) Panel Report, Argentina – Safeguard Measures onImports of Footwear, WT/DS121/R, adopted 12 January 2000, as modified by

Appellate Body Report WT/DS121/AB/R, DSR 2000:II, 575

Brazil – Retreaded Tyres Appellate Body Report, Brazil – Measures AffectingImports of Retreaded Tyres, WT/DS332/AB/R, adopted 17 December 2007

Brazil – Retreaded Tyres Panel Report, Brazil – Measures Affecting Imports ofRetreaded Tyres, WT/DS332/R, adopted 17 December 2007, as modified by

Appellate Body Report WT/DS332/AB/R

Canada – Autos Appellate Body Report, Canada – Certain Measures Affecting theAutomotive Industry, WT/DS/ 139/AB/R, WT/DS 142/AB/R, adopted 19 June

2000

xv

Canada – Autos Panel Report, Canada – Certain Measures Affecting the Automo-tive Industry, WT/DS 139, WT/DS 142/R, adopted 19 June 2000, as modified by

the Appellate Body Report WT/DS 139/AB/R, WT/DS 142/AB/R, DSR 2000

EC – Asbestos Appellate Body Report, European Communities – Measures Affect-ing Asbestos and Asbestos-Containing Products, WT/DS135/AB/R, adopted

5 April 2001, DSR 2001:VII, 3243

EC – Asbestos Panel Report, European Communities – Measures Affecting Asbes-tos and Asbestos-Containing Products, WT/DS135/R and Add.1, adopted

5 April 2001, as modified by Appellate Body Report WT/DS135/AB/R, DSR

2001:VIII, 3305

EC – Bananas III Appellate Body Report, European Communities – Regime forthe Importation, Sale and Distribution of Bananas, WT/DS27/AB/R, adopted

25 September 1997, DSR 1997:II, 591

EC – Tariff Preferences Appellate Body Report, European Communities – Con-ditions for the Granting of Tariff Preferences to Developing Countries,WT/DS246/AB/R, adopted 20 April 2004, DSR 2004:III, 925

EC – Tariff Preferences Panel Report, European Communities – Conditions forthe Granting of Tariff Preferences to Developing Countries, WT/DS246/R,

adopted 20 April 2004, as modified by Appellate Body Report WT/DS/246/

AB/R, DSR 2004:III, 1009

India – Quantitative Restrictions Appellate Body Report, India – QuantitativeRestrictions on Imports of Agricultural, Textile and Industrial Products,WT/DS90/AB/R, adopted 22 September 1999, DSR 1999:IV, 1763

India – Quantitative Restrictions Panel Report, India – Quantitative Restrictionson Imports of Agricultural, Textile and Industrial Products, WT/DS90/R,

adopted 22 September 1999, as upheld by Appellate Body Report WT/DS90/

AB/R, DSR 1999:V, 1799

Japan – Alcoholic Beverages II Appellate Body Report, Japan – Taxes onAlcoholic Beverages, WT/DS8/AB/R,WT/DS10/AB/R,WT/DS11/AB/R,

adopted 1 November 1996, DSR 1996:I, 97

Japan – Alcoholic Beverages II Panel Report, Japan – Taxes on AlcoholicBeverages, WT/DS8/R, WT/DS10/R, WT/DS11/R, adopted 1 November 1996,

as modified by Appellate Body Report WT/DS8/AB/R,WT/DS10/AB/R,WT/

DS11/AB/R, DSR 1996:I, 125

Turkey – Textiles Appellate Body Report, Turkey – Restrictions on Imports ofTextile and Clothing Products, WT/DS34/AB/R, adopted 19 November 1999,

DSR 1999:VI, 2345

Turkey – Textiles Panel Report, Turkey – Restrictions on Imports of Textile andClothing Products, WT/DS34/R, adopted 19 November 1999, as modified by

Appellate Body Report WT/DS34/AB/R, DSR 1999:VI, 2363

US – Gambling Appellate Body Report, United States – Measures Affecting theCross-Border Supply of Gambling and Betting Services, WT/DS285/AB/R,

adopted 20 April 2005, DSR 2005:XII, 5663 (Corr.1, DSR 2006:XII, 5475)

US – Gambling Panel Report, United States – Measures Affecting the Cross-Border Supply of Gambling and Betting Services, WT/DS285/R, adopted

xvi Table of Cases

20 April 2005, as modified by Appellate Body Report WT/DS285/AB/R, DSR

2005:XII, 5797

US – Gasoline Appellate Body Report, United States – Standards for Reformulatedand Conventional Gasoline, WT/DS2/AB/R, adopted 20 May 1996, DSR 1996:

I, 3

US – Gasoline Panel Report, United States – Standards for Reformulated andConventional Gasoline, WT/DS2/R, adopted 20 May 1996, as modified by

Appellate Body Report WT/DS2/AB/R, DSR 1996:I, 29

US – Section 211 Appropriations Act Appellate Body Report, United States –Section 211 Omnibus Appropriations Act of 1998, WT/DS176/AB/R, adopted

1 February 2002, DSR 2002:II, 589

US – Section 211 Appropriations Act Panel Report, United States – Section 211Omnibus Appropriations Act of 1998, WT/DS176/R, adopted 1 February 2002,

as modified by Appellate Body Report WT/DS176/AB/R, DSR 2002:II, 683

US – Shrimp Appellate Body Report, United States – Import Prohibition ofCertain Shrimp and Shrimp Products, WT/DS58/AB/R, adopted 6 November

1998, DSR 1998:VII, 2755

US – Shrimp Panel Report, United States – Import Prohibition of Certain Shrimpand Shrimp Products, WT/DS58/R and Corr.1, adopted 6 November 1998, as

modified by Appellate Body Report WT/DS58/AB/R, DSR 1998:VII, 2821

US – Shrimp (Article 21.5 –Malaysia) Appellate Body Report, United States –Import Prohibition of Certain Shrimp and Shrimp Products – Recourse to Article21.5 of the DSU by Malaysia, WT/DS58/AB/RW, adopted 21 November 2001,

DSR 2001:XIII, 6481

US – Shrimp (Article 21.5 –Malaysia) Panel Report, United States – ImportProhibition of Certain Shrimp and Shrimp Products – Recourse to Article 21.5of the DSU by Malaysia, WT/DS58/RW, adopted 21 November 2001, as upheld

by Appellate Body Report WT/DS58/AB/RW, DSR 2001:XIII, 6529

3. GATT

The reports are listed in order of the date of adoption or, if unadopted, the date of

publication.

EBelgium – Family Allowances GATT Panel Report, Belgian Family Allowances,G/32, adopted 7 November 1952, BISD 1S/59 (1953)

EEC – Import Restrictions GATT Panel Report, EEC – Quantitative RestrictionsAgainst Imports of Certain Products from Hong Kong, adopted 12 July 1983,

L/5511, BISD 30S/129

EEC (Member States) – Bananas 1, European Economic Community-MemberStates’ Import Regimes for Bananas, unadopted, Jun. 3, 1993, DS32/R.

Table of Cases xvii

Japan – Imported Wines and Alcoholic Beverages: Japan – Customs Duties,Taxes and Labelling Practices on Imported Wines and Alcoholic Beverages,adopted on 10 November 1987, BISD 34S/38 (1988)

Korea – Restrictions on Imports of Beef – Complaint by the United States,

adopted 7 November 1989, L/6503, BISD 63S/268.

US – Tuna (Mexico) GATT Panel Report, United States – Restrictions on Importsof Tuna, DS21/R, DS21/R, 3 September 1991, unadopted, BISD 39S/155

US – Tuna (Mexico) GATT Panel Report, United States – Restrictions on Importsof Tuna, unadopted, 3 September 1991, DS21/R, BISD 39S/155

US – Tuna (EEC) GATT Panel Report, United States – Restrictions on Imports ofTuna, DS29/R, 16 June 1994, unadopted

US–Tuna I: United States – Restrictions on Imports of Tuna, not adopted, BISD,39S/155 (1993).

US–Tuna II: United States – Restrictions on Imports of Tuna, not adopted,

33 I.L.M. (1994), pp. 839–903.

US – Tuna, GATT Panel Report, United States – Restrictions on Imports of Tuna(DS29/R), GATT Panel Report, circulated on 16 June 1994 (not adopted).

4. NAFTA/NAALC

(a) Canada

ITAPSA or Echlin Case, Canada NAO Submission No. 98-1 (April 6, 1998).

(b) Mexico

Sprint Case, Mexico NAO Submission No. 9501 (February 9, 1995).

Decoster Egg Case, Mexico NAO Submission No. 9803 (August 4, 1998).

(c) United States of America

U.S. NAO Submission No. 2005-03 (HIDALGO) (October 14, 2005).U.S. NAO Submission No. 2003-01 (PUEBLA) (September 30, 2003).Honeywell and General Electric Cases, U.S. NAO Submissions No. 940001 and

940002. (February 14, 1994).Sony Case, U. S. NAO Submission No. 940003 (SONY) (August 16, 1994)

xviii Table of Cases

5. Domestic Courts

(a) United Kingdom

Jenkins v Kingsgate (Clothing Productions) Ltd [1981] Case 96/80

E.C.R. 911, ECJ.

Murphy v Bord Telecom Eirrean [1988] Case 157/86 ECR 673.

EC Commission v United Kingdom of Great Britain and Northern Ireland, [1982]ICR 578, [1982] IRLR 333, ECJ.

Sibson-v-United Kingdom (Case 4/1992/349/422) [1993] ECHR 18; 14327/88;

[1993] ECHR 18.

(b) United States

State of Wisconsin ex rel v. Fitzgerald et al [2011, Case No: 11 CV 1244].

Doe, et al. v Unocal Corp. Case No. CV 96-6959 110 F. Supp. 2d 1294; 2000

US. Dist., March 25, 1997.

LFC, Inc. v. NLRB, 129 F.3d 1276 (D.C. Cir. 1997).

Sprogis v. United Air Lines, Federal Court of Appeals (Seventh Circuit),

16 June 1971.

Liggett Co. v. Lee 288 U.S. 517, 557-60 (1933)

Table of Cases xix

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Table of Abbreviations

AB Appellate Body

ACP Africa, Caribbean and Pacific countries

AFL-CIO American Federation of Labor-Congress of Industrial

Organizations

AGOA Africa Growth and Opportunity Act

APEC Asian-Pacific Economic Cooperation

CAFTA-DR Central American Free Trade Agreement and Dominican

Republic

CAP Common Agricultural Policy (EU)

CARIFORUM Caribbean Forum of Caribbean States

CAT Centro de Apoyo al Trabajador

CAWN Central America Women’s NetworkCBTPA Caribbean Basin Trade Partnership Act

CEACR Committee of Experts on the Application of Conventions and

Recommendations

CEMAC Economic Community of Central African States plus the

Democratic Republic of Congo and Sao Tome and Prıncipe

CFA Committee on Freedom of Association

CLS Core Labour Standards

COLISIBA Coordinadora Latinoamericana de Sindicatos Bananeros

CUSFTA Canada–US Free Trade Agreement

CRTA Committee on Regional Trade Agreement

CTM Mexican Confederation of Labour

COMESA Common Market for Eastern and Southern Africa

DSM Dispute Settlement Mechanism

EAC East African Community

EBA Everything But Arms

EC Economic Community

EEC European Economic Community

ECE Evaluation Committee of Experts

xxi

ECJ European Court of Justice

ECOWAS Economic Community of West African States and Mauritania

EPA Economic Partnership Agreements

ECOSOC Economic and Social Council (United Nations)

ELSA Employment, Labour and Social Affairs Committee

ESA Eastern and Southern Africa

EU European Union

FOCAC Forum on China-African Cooperation

FPE Factor Price Equalization theorem

FDI Foreign Direct Investment

FPRW Fundamental principles and rights at work

FTA Free Trade Agreement

FTAA Free Trade Agreement of the Americas

FTVO-CROC Federaci�on de Trabajadores Vanguardia Obrera de la

Confederaci�on Revolucionaria de Obreros y Campesinos

(“Workers Federation of the Revolutionary Confederation of

Workers and Peasants”)

GATT General Agreement on Tariffs and Trade

GB Governing Body

GC General Council

GLTFA Global Labour and Trade Framework Agreement

GSP Generalized System of Preferences

IBT International Brotherhood of Teamsters

ICFTU International Confederation of Free Trade Unions

IFA International Framework Agreement

ILC International Labour Conference

ILO International Labour Organization

IPR Intellectual Property Rights

IMF International Monetary Fund

ITO International Trade Organization

IUF International Union of Food, Agricultural, Hotel, Restaurant,

Catering, Tobacco and Allied Workers’ AssociationsITUC International Trade Union Confederation

LDC Least Developed Countries

LCM Labor Cooperation Mechanism

MDGs Millennium Development Goals

MFN Most-Favoured Nation Principle

MMPA Marine Mammal Protection Act

MNC Multinational Corporation

MSN Maquiladora Solidarity Network

MTS Multilateral Trading System

NAALC North American Agreement on Labor Cooperation

NAFTA North American Free Trade Agreement

NAO National Administrative Office

xxii Table of Abbreviations

NBER National Bureau of Economic Research

NLRB National Labor Relations Board

OECD Organisation for Economic Co-operation and Development

OPIC Overseas Private Investment Corporation (USA)

OTAI Office of Trade Agreement Implementation

OTLA Office of Trade and Labor Affairs

PIF Pacific Islands Forum

PPM Process and Production Methods

RTA Regional Trade Agreement

RLTFA Regional Labour and Trade Framework Agreement

SADC Southern Africa Development Cooperation

TPA Trade Promotion Agreement

TRIPS Trade-Related Intellectual Property Rights Agreement

UDHR Universal Declaration of Human Rights

UE United Electrical, Radio and Machine Workers of America

UNCTAD United Nations Conference on Trade and Development

USAS United Students Against Sweatshops

USTR United States Trade Representative

VCLT Vienna Convention on the Law of Treaties

WEF World Economic Forum

WTO World Trade Organization

Table of Abbreviations xxiii

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Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Thesis of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Linkage Between the Core Labour Standards and International

Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.2.1 Regional Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.2.2 Legal Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1.3 Structure of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2 The Global Debate: The Linkage Between Labour Standards

and International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2.2 Overview of the Perspectives of the Proponents and Critics

of the Labour and Trade Linkage . . . . . . . . . . . . . . . . . . . . . . . . 21

2.2.1 A Brief View of the Proponents . . . . . . . . . . . . . . . . . . . . 21

2.2.2 A Brief View of the Critics . . . . . . . . . . . . . . . . . . . . . . . 21

2.3 Is There a Case for International Labour Standards in

Trade Agreements? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

2.3.1 Fundamental Principles and Rights at Work as

Enabling Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2.3.2 Why Intellectual Property and Not CLS . . . . . . . . . . . . . . 25

2.3.3 Views from Academia . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

2.4 Multidisciplinary of the Issue of Labour Rights and

International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

2.4.1 Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

2.4.2 Social Perspective of Trade Regulation on Labour

Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

2.5 The Economic and Social Rights Divide in a Globalised World . . . 33

xxv

2.5.1 Social Policy and Trade Policy . . . . . . . . . . . . . . . . . . . . . 34

2.5.2 Globalisation and Social Protection . . . . . . . . . . . . . . . . . 35

2.5.3 The Relevance of International Cooperation . . . . . . . . . . . 36

2.5.4 The Regional Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

2.6 Globalisation, Labour Standards, and International Trade

Debate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

2.6.1 The Concept of Globalisation . . . . . . . . . . . . . . . . . . . . . . 38

2.6.2 The Impact of Globalisation . . . . . . . . . . . . . . . . . . . . . . . 39

2.6.3 Globalisation and the Labour Market . . . . . . . . . . . . . . . . 40

2.6.4 The Anxiety Over Globalisation . . . . . . . . . . . . . . . . . . . . 41

2.7 Issues in the Labour Standards and International Trade Debate . . . 43

2.7.1 Labour Standards and Wage Inequality in Developed

Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

2.7.2 Trade and Employment and the Issue of Jobs Migration . . . 47

2.7.3 Outsourcing and the American Experience . . . . . . . . . . . . 47

2.7.4 Labour Standards and Developing Country

Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

2.7.5 Labour Standards and Foreign Direct Investment Flows:

Is There a ‘Race to the Bottom’? . . . . . . . . . . . . . . . . . . . 50

2.8 The Role of Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

2.8.1 Trade and Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . 58

2.8.2 Changing Landscape of Trade Relations . . . . . . . . . . . . . . 60

2.8.2.1 South–South Trade Relations . . . . . . . . . . . . . . . 60

2.8.2.2 The Impact of South–South Trade Relations

on the Linkage Issue . . . . . . . . . . . . . . . . . . . . . 64

2.9 The Financial Crisis and Labour Relations . . . . . . . . . . . . . . . . . . 67

2.9.1 Impact of the Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

2.9.1.1 Remittances . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

2.9.2 The Impact of the Crisis on Core Labour Standards

Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

3 The History of Core Labour Standards . . . . . . . . . . . . . . . . . . . . . . 77

3.1 The History of the Linking of Labour Standards and Trade . . . . . . 77

3.2 Early Developments of the Linkage Between Trade and

Labour Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

3.3 The Pioneers of the Interface Between Trade and Labour

Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

3.4 The ILO and the Link Between Labour Standards and

International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

3.5 The ILO Supervisory and Enforcement Mechanism . . . . . . . . . . . 86

xxvi Contents

3.5.1 Regular System of Supervision . . . . . . . . . . . . . . . . . . . . . 86

3.5.1.1 Committee of Experts on the Application

of Conventions and Recommendations . . . . . . . . 87

3.5.1.2 The Conference Committee on the Application

of Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

3.5.2 The Special Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . 91

3.5.2.1 Procedure for Representation in Applying

Ratified Conventions . . . . . . . . . . . . . . . . . . . . . 91

3.5.2.2 Procedure for Complaints Concerning Ratified

Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

3.5.2.3 Procedure for Complaints with Respect to

Freedom of Association . . . . . . . . . . . . . . . . . . . 92

3.6 Evaluation of the ILO Supervisory Mechanism . . . . . . . . . . . . . . 93

3.7 Labour Standards at the International Level: The Definition

and Selection of Core Labour Standards . . . . . . . . . . . . . . . . . . . 96

3.7.1 The Core Labour Standards . . . . . . . . . . . . . . . . . . . . . . . 97

3.7.2 The Emergence of CLS . . . . . . . . . . . . . . . . . . . . . . . . . . 100

3.7.3 Benefits of CLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

3.7.4 Freedom of Association and Development . . . . . . . . . . . . 103

3.8 The ILO Declaration on Fundamental Principles and Rights

at Work, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

3.9 Labour Standards as Universal Standards . . . . . . . . . . . . . . . . . . . 109

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

4 Legal Analysis: CLS, International Law, and the Process

and Production Method Argument . . . . . . . . . . . . . . . . . . . . . . . . . . 115

4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

4.2 Customary Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

4.2.1 CLS and Customary International Law . . . . . . . . . . . . . . . 116

4.2.2 State Practice as Customary Law . . . . . . . . . . . . . . . . . . . 117

4.2.3 Opinion Juris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

4.3 Vienna Convention on the Law of Treaties (VCLT) . . . . . . . . . . . 118

4.3.1 VCLT Article 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

4.3.2 Article 41: Modification to Treaties . . . . . . . . . . . . . . . . . 120

4.3.3 Modification Under GATT Article XXIV . . . . . . . . . . . . . 122

4.4 Core Labour Standards as Jus Cogens? . . . . . . . . . . . . . . . . . . . . 123

4.4.1 Brief Overview of Jus Cogens . . . . . . . . . . . . . . . . . . . . . 123

4.4.2 Jus Cogens and Core Labour Standards . . . . . . . . . . . . . . 124

4.5 Core Labour Standards as Workers (Human) Rights . . . . . . . . . . . 125

4.5.1 Human Rights and Workers’ Rights: Individual andCollective Labour Standards . . . . . . . . . . . . . . . . . . . . . . 126

4.5.2 Workers’ Rights at the International Level . . . . . . . . . . . . 127

4.6 Labour Standards and the WTO . . . . . . . . . . . . . . . . . . . . . . . . . 129

Contents xxvii

4.6.1 A Brief History of the Multilateral Trading System . . . . . . 130

4.6.2 WTO Legal System: Trade Measures and Core Labour

Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

4.6.2.1 GATT Article I: Most-Favoured Nation

(MFN) Principle . . . . . . . . . . . . . . . . . . . . . . . . 132

4.6.2.2 GATT Article II: Schedule of Concessions . . . . . 133

4.6.2.3 GATT Article III: National Treatment . . . . . . . . 133

4.6.2.4 GATT Article XI:1: Quantitative

Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

4.6.3 Enforcement Under WTO Legal System . . . . . . . . . . . . . . 135

4.6.3.1 Impact on the WTO . . . . . . . . . . . . . . . . . . . . . . 135

4.6.3.2 General Exceptions Provisions . . . . . . . . . . . . . . 135

4.7 The Process and Production Method (PPM) Debate . . . . . . . . . . . 140

4.7.1 What Are PPMs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

4.7.2 The Political Economy of PPMs . . . . . . . . . . . . . . . . . . . . 141

4.7.3 GATT/WTO and PPMs . . . . . . . . . . . . . . . . . . . . . . . . . . 142

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

5 Unilateral Social Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

5.2 Social Clauses in International Trade Agreements: Precedents . . . 148

5.3 Unilateral Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

5.3.1 The Enabling Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

5.4 U.S. Unilateral Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

5.4.1 The United States Generalised System of Preferences . . . . 151

5.4.2 Impact of United States GSP on Beneficiary Countries . . . 155

5.5 The European Union’s Generalised System of Preferences . . . . . . 156

5.5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

5.5.2 The EU’s New GSP Scheme . . . . . . . . . . . . . . . . . . . . . . 157

5.5.3 Tariff Preferences Under the Special Incentive

Arrangement (GSP+) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

5.5.3.1 The Provisions of the 2001 and 2012

GSP+ Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . 160

5.5.3.2 The WTO Decision on the India GSP Case . . . . . 162

5.5.3.3 Panel Report . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

5.5.3.4 Appellate Body Report . . . . . . . . . . . . . . . . . . . . 163

5.5.3.5 The Relevance of the Appellate Body Decision . . . 163

5.6 Impact of European GSP Scheme on Beneficiary Countries . . . . . 164

5.7 International Framework Agreements . . . . . . . . . . . . . . . . . . . . . 166

5.7.1 IFAs and Corporate Social Responsibility . . . . . . . . . . . . . 167

5.7.2 Expectations from IFAs . . . . . . . . . . . . . . . . . . . . . . . . . . 168

5.7.3 Impact of IFAs on the Labour and Trade Linkage . . . . . . . 170

5.7.4 Binding Nature of IFAs . . . . . . . . . . . . . . . . . . . . . . . . . . 171

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

xxviii Contents

6 Regional Trade Agreements and the Interface Between Labour

Standards and International Trade . . . . . . . . . . . . . . . . . . . . . . . . . 175

6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

6.2 The Rise of Regionalism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

6.3 Legal Basis for RTAs Under the Multilateral System:

GATT/WTO Rules on RTAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

6.4 Relevant Multilateral Rules on Regional Trade Agreements . . . . . 182

6.5 Examination of the Relevant Sections of Article XXIV . . . . . . . . 184

6.5.1 Analyses of the Legal Implications of Regional Trade

Agreements Under WTO Rules . . . . . . . . . . . . . . . . . . . . 186

6.5.2 The Scope of Article XXIV:4 and Its Relationship with

Other Provisions in Article XXIV of GATT 1994 . . . . . . . 187

6.5.3 Review of WTO Rules Relating to Regional Trading

Agreements: Examination of Article XXIV:5, 7, & 8

of GATT 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

6.5.3.1 Relevant Provisions of Article XXIV . . . . . . . . . 190

6.5.3.2 The Quantitative Approach . . . . . . . . . . . . . . . . . 195

6.5.3.3 The Qualitative Approach . . . . . . . . . . . . . . . . . 197

6.6 Agreements Notified Pursuant to the Enabling Clause . . . . . . . . . 198

6.6.1 Requirements Under the Enabling Clause . . . . . . . . . . . . . 199

6.6.2 The Enabling Clause and Article XXIV . . . . . . . . . . . . . . 201

6.7 The Impact of the Turkey-Textiles Case on the CLS

and Trade Debate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

6.7.1 Issues in the Turkey-Textiles Case . . . . . . . . . . . . . . . . . . 203

6.7.2 Appellate Body Review . . . . . . . . . . . . . . . . . . . . . . . . . . 204

6.7.3 The Dispute Settlement Mechanism and the Scope of

Review on the Overall Consistency of Regional Trade

Agreements with the Provisions of Article XXIV . . . . . . . 207

6.7.4 Concurrent Jurisdiction Debate . . . . . . . . . . . . . . . . . . . . . 208

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209

7 Regional Trade Agreements and Labour Provisions . . . . . . . . . . . . . 211

7.1 Labour Provisions in Regional Trade Agreements . . . . . . . . . . . . 211

7.2 United States of America RTAs with Labour Provisions . . . . . . . . 212

7.3 United States of America’s Motives for Promoting FTAs . . . . . . . 215

7.4 Review of United States of America Free Trade Agreements

and Labour Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

7.4.1 North American Free Trade Agreement (NAFTA) . . . . . . . 216

7.4.1.1 NAALC: Precedent for Labour Standards in

Trade Agreements . . . . . . . . . . . . . . . . . . . . . . . 217

7.4.1.2 Obligations of the Three Parties Under

NAALC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

7.4.2 Labour Provisions in the United States–Jordan FTA

(U.S.–Jordan FTA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

Contents xxix

7.4.3 Labour Provisions in the United States–Singapore Free

Trade Agreement (U.S.–Singapore FTA) . . . . . . . . . . . . . 223

7.4.4 Labour Provisions in the United States–Chile Free Trade

Agreement (U.S.–Chile FTA) . . . . . . . . . . . . . . . . . . . . . . 227

7.4.5 Labour Provisions in the United States–Peru Trade and

Promotion Agreement (U.S.–Peru FTA) . . . . . . . . . . . . . . 229

7.5 European Free Trade Agreements with Labour Provisions . . . . . . 231

7.5.1 Euro-Mediterranean Association Agreements . . . . . . . . . . 235

7.5.2 European Community–Chile Association Agreement

(EC–Chile FTA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

7.5.3 EU–ACP Agreement (The Cotonou Agreement and the

Economic Partnership Agreements) . . . . . . . . . . . . . . . . . 238

7.5.3.1 Trade and Labour Standards . . . . . . . . . . . . . . . . 239

7.5.4 EU–CARIFORUM States Partnership Agreement . . . . . . . 240

7.5.4.1 Respect for Core Labour Standards . . . . . . . . . . . 241

7.5.4.2 Dispute Settlement System . . . . . . . . . . . . . . . . . 242

7.5.5 EU–Republic of Korea FTA . . . . . . . . . . . . . . . . . . . . . . . 243

7.5.5.1 Respect for the Core Labour Standards . . . . . . . . 244

7.5.5.2 Dispute Settlement . . . . . . . . . . . . . . . . . . . . . . . 245

7.6 Regional Trade Agreements of Canada with Labour Provisions . . 247

7.6.1 Canada–Chile Free Trade Agreement (CCFTA) . . . . . . . . 248

7.6.2 Canada–Costa Rica Free Trade Agreement . . . . . . . . . . . . 249

7.6.3 Canada–Colombia Free Trade Agreement . . . . . . . . . . . . . 250

7.6.4 Canadian FTAs with Chile, Costa Rica, and Colombia:

Labour Institutions and Dispute Settlement Mechanisms . . 250

7.6.4.1 Dispute Resolution . . . . . . . . . . . . . . . . . . . . . . . 251

7.7 Selection of Other Regional Trade Agreements with Labour

Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

7.7.1 Asian Trade Agreements with Labour Provisions . . . . . . . 253

7.7.2 African Trade Agreements with Labour Provisions . . . . . . 254

7.7.3 Chile Trade Agreements with Labour Provisions . . . . . . . . 256

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

8 The Impact of Regional Trade Agreements on the Labour-Trade

Debate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261

8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261

8.2 The Influence of RTAs on the Multilateral System . . . . . . . . . . . . 261

8.2.1 RTAs as Stimulus for the Multilateral System . . . . . . . . . . 262

8.2.2 RTAs as Laboratories for the Multilateral System . . . . . . . 263

8.2.2.1 General Standpoint . . . . . . . . . . . . . . . . . . . . . . 263

8.3 The U.S. Trade Act of 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264

8.4 Implications of NAALC on Labour Rights Protection in

North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267

xxx Contents

8.5 Labour Enforcement Under NAALC . . . . . . . . . . . . . . . . . . . . . . 268

8.5.1 NAALC: The Dispute Resolution Process . . . . . . . . . . . . . 268

8.5.2 Review of Selected Cases . . . . . . . . . . . . . . . . . . . . . . . . 274

8.5.2.1 U.S.A. OTLA (Formerly NAO) . . . . . . . . . . . . . 276

8.5.2.2 Mexico NAO . . . . . . . . . . . . . . . . . . . . . . . . . . . 282

8.5.2.3 Canada NAO . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

8.5.3 General Discussion of the NAALC Submissions . . . . . . . . 287

8.6 Impact of NAALC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

8.6.1 Critics of NAALC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

8.6.2 Supporter’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . 291

8.6.3 Overall Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

8.7 Do FTAs Advance Workers’ Basic Rights? . . . . . . . . . . . . . . . . . 296

8.7.1 CAFTA-DR and Labour Standards Compliance . . . . . . . . 296

8.7.1.1 Labour Enforcement Under CAFTA . . . . . . . . . . 301

8.7.1.2 Impact of CAFTA-DR on Labour Standard

Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

8.7.2 Lessons from the U.S.–Cambodia Textile Agreement . . . . 304

8.8 The Limits of Regional Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . 306

8.8.1 Regional Efforts Versus Multilateralism . . . . . . . . . . . . . . 306

8.8.2 A Global Issue in a Regionalised World and Its Implications

at the National Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311

9 Conclusion and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . 313

9.1 Social Norms and Trade Liberalisation in a Globalised World . . . 313

9.2 Lessons from the Regional Context . . . . . . . . . . . . . . . . . . . . . . . 316

9.3 RTAs and an International Framework . . . . . . . . . . . . . . . . . . . . 319

9.4 Development of a Global Labour and Trade Framework

Agreement: Joint ILO/WTO Enforcement Mechanism . . . . . . . . . 320

9.4.1 Institutional Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . 321

9.4.2 Distribution of Governance Activities . . . . . . . . . . . . . . . . 322

9.4.3 Cooperation Between the ILO and WTO . . . . . . . . . . . . . 323

9.4.4 Consultations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325

9.4.5 Dispute Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326

9.5 Final Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

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List of Figures

Fig. 7.1 Institutional structure of NAALC. Source: GAO-01-933 North

American Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

Fig. 8.1 NAALC submission process. Source: Finbow (2006), p. 68 . . . . . . . 271

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List of Tables

Table 3.1 Core ILO Conventions and number of ratifications . . . . . . . . . . . . . . . 101

Table 5.1 U.S. trade and investment legislation with labour standard

provisions (1890–1989) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

Table 5.2 Evolution of labour provisions in the EU GSP, from 1995

to 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Table 7.1 United States FTAs with labour rights and social provisions . . . . 214

Table 7.2 Comparison of key provisions of U.S.–Jordan FTAs and

NAFTA .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

Table 7.3 Key labour aspects of U.S. Trade Agreements in all models . . . . 232

Table 7.4 EU trade agreements with labour provisions . . . . . . . . . . . . . . . . . . . . . . 247

Table 7.5 Canada FTAs with labour provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

Table 7.6 Asian FTAs with labour provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

Table 7.7 Sub-Saharan African FTAs with labour provisions . . . . . . . . . . . . . . . 256

Table 7.8 Latin America and Caribbean FTAs with labour provisions . . . . . 257

Table 7.9 Chilean FTAs with labour provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258

Table 8.1 NAALC labour principles and levels of treatment . . . . . . . . . . . . . . . . 275

Table 8.2 Regional Priorities and Recommendations of the

Working Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299

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List of Boxes

Box 2.1 The Story of the Prisoners’ Dilemma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Box 2.2 Links Between Trade and CLS: The Findings of Recent Empirical

Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Box 2.3 Labour Relations in Singapore (1997–1998) . . . . . . . . . . . . . . . . . . . . . . . . 72

Box 3.1 ILO Declaration on Fundamental Principles and Rights

at Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

Box 3.2 International Labour Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Box 6.1 The Motives for Regionalism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

Box 7.1 The Three-Tier System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

Box 8.1 Resolution of Disputes: North American Agreement on

Labor Cooperation (NAALC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

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