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LABOUR PROVISIONS IN EU AND US MEGA-REGIONAL TRADE AGREEMENTS: RHETORIC AND REALITY

Published online by Cambridge University Press:  03 January 2018

Billy Melo Araujo*
Affiliation:
Lecturer, School of Law, Queen's University Belfast, B.Melo-Araujo@qub.ac.uk.

Abstract

The EU and the US have long called for the linking of trade and labour standards in trade agreements at both the multilateral and bilateral level. This article examines their practice of including labour provisions in trade agreements, with a particular focus on recent attempts to include such provisions on so-called ‘mega-regionals’, which were presented by their proponents as providing the benchmark for labour protection in future trade agreements. It discusses the rationale behind the inclusion of such provisions and their practical limitations, and examines the extent to which mega-regionals address these limitations. It is argued that whilst the EU and the US have been keen advocates for trade-labour linkages, there has also been an unwillingness to convert this rhetoric into practice, raising questions about the extent of their commitment to these values.

Type
Shorter Articles and Notes
Copyright
Copyright © British Institute of International and Comparative Law 2017 

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References

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29 The US typically includes a ‘Labour’ chapter in its FTAs whilst the EU FTAs include ‘sustainable development’ chapters which address both labour and environmental protection issues.

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33 ibid para 190.

34 ibid para 165.

35 ibid para 193.

36 Art 18(5) US–Australia FTA; art 17(5) US–Colombia FTA; art 16(4) CAFTA-DR FTA; art 19(5) KORUS.

37 Art 18(6) US–Australia FTA; art 17(1) US–Colombia FTA; art 15(6) US–Bahrain FTA; art 16(6) CAFTA-DR FTA; art 19(7) KORUS.

38 See, for example, art 189 and 195 CEPA; arts 13.12–13.15 EU-Korea FTA; art 283–285 Colombia-Peru FTA; arts 294–297 EU–CA FTA; art 13.15 EU–Singapore FTA.

39 See, for example, art 195 EU–CARIFORUM FTA; art 13(3) EU–Korea FTA; art 280 EU–Colombia/Peru FTA.

40 See, for example, art 13-13 EU–Korea FTA; art 282 EU–Colombia/Peru FTA; art 238 CETA.

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43 See art 13(1) Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea OJ L 127; art 191(2) Economic Partnership between the CARIFORUM States, of the one part, and the European Community and its Member States, of the other part OJ L289/I/3. Art 23(3) Comprehensive Economic and Trade Agreement between Canada on the one part and the European Union and its Member States (CETA). The CETA was signed on 30 October 2016 and is currently awaiting approval from the European parliament. The parts of the agreement that fall under the EU's exclusive competence will be provisionally applied once the European Parliament's approval is secured. Those parts that fall within the EU's shared competence will only enter into effect following ratification by each EU Member State <http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152806.pdf>.

44 Art 286(2) Council Decision of 25 June 2012 on the signing, on behalf of the European Union, of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other, OJ L 346.

45 F De Ville, J Orbie and L Van den Putte, ‘TTIP and Labour Standards’ (2016) Directorate General for Internal Policies Department: Economic and Scientific Policy IP/A/EMPL/2015-07, at 33. <http://www.europarl.europa.eu/RegData/etudes/STUD/2016/578992/IPOL_STU(2016)578992_EN.pdf>.

46 Art 193 EU–CARIFORUM EPA.

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49 See for example art 174)(5) and Annex 20A US–Singapore FTA; Grynberg, R and Qalo, V, ‘Labour Standards in US and EU Preferential Trading Arrangements’ (2006) 40(4) JWT 632–3Google Scholar; Cimino-Isaacs, C, ‘Labor Standards in the TPP’ in Cimino-Isaacs, C and Schott, JJ (eds), Trans-Pacific Partnership: An Assessment (Peterson Institute for International Economics 2016) 264–5Google Scholar.

50 Ebert and Posthuma (n 48).

51 The one exception to the rule is the EU–CARIFORUM Economic Partnership Agreement (EU–CARIFORUM EPA). The EU–CARIFORUM EPA subjects disputes concerning sustainable development provisions to its dispute settlement mechanism, although even in that case, the ability to suspend market access concessions as a result of the violation of any sustainable development objective is ruled out. Art 23(2) EC-EPA.

52 Art 189.6 and 195.6 CEPA; art 13.15 KOREU FTA; art 284 Colombia-Peru FTA; arts 297–301 EU–CA FTA ; art 13.16 EU–Singapore FTA.

53 Art 13.15(2) KOREU FTA.

54 Art 185(4) Colombia–Peru FTA.

55 Art 301 (3) EU–CA FTA.

56 Art 13.17(9) EU–Singapore FTA.

57 Art 23.11 CETA.

58 European Parliament resolution of 25 November 2010 on human rights and social and environmental standards in international trade agreements (2009/2219(INI)) P7_TA(2010)0434.

59 F Hoffmeister, ‘The Deep and Comprehensive Free Trade Agreements of the European Union’ in M Cremona and T Takács (eds), Trade Liberalisation and Standardisation – New Directions in the ‘Low Politics’ of EU Foreign Policy (2013) CLEER Working Papers 2013/6 <http://www.asser.nl/media/1641/cleer_13-6_web.pdf>.

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64 For a review of the economic literature on the effect of labour standards commitments in trade agreements see Salem, S and Rozental, F, ‘Labour Standards and Trade: A Review of Recent Empirical Evidence’ (2012) 4(2) Journal of International Commerce and Economics 1 Google Scholar.

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66 ibid 29.

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74 US Government Accountability Office (GAO), ‘U.S. Partners Are Addressing Labor Commitments, But More Monitoring and Enforcement Are Needed’ (November 2014) <https://www.gao.gov/assets/670/666788.pdf>; Baclawski, B Cohan, ‘Re-Thinking the WTO's Relationship to International Labor Standards: Is It Finally Time for a Global Approach’ (2016) 48 Georgetown Journal of International Law 255 Google Scholar.

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77 Agreement between the Government of the United States and the Government of the Kingdom of Bahrain on the Establishment of a Free Trade Agreement, U.S.-Bahr. (14 September 2004) 44 ILM 544 [hereinafter US–Bahrain FTA].

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79 Vogt (n 71) 848–9.

80 US GAO (n 74) 43–6; Vogt (n 71) 859.

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83 ibid 31

84 Marx, Lein and Brando (n 76) 599.

85 Orbie and Van den Putte (n 82) 39

86 ibid; Marx, Lein and Brando (n 76) 603–4.

87 Drahos, P, ‘Weaving Webs of Influence: The United States, Free Trade Agreements and Dispute Resolution Journal of World Trade’ (2007) 41(1) JWT 200 Google Scholar; L Winters, ‘The WTO and Regional Trade Agreements: Is It All Over for Multilateralism?’ (2015) EUI Working Papers, RSCAS 2015/94, 10.

88 G Felbermayr and R Aichele, How to make TTIP Inclusive for all? Potential Economic Impacts of the Transatlantic Trade and investment Partnership (TTIP) on Developing Countries (30 August 2015) Study of the IFO Institute, 25–7; Winters (n 87) 10.

89 D Hamilton and S Blockmans, ‘The Geostrategic Implications of TTIP’ (CEPS Special Report, No 105 / April 2015) 9 <https://www.ceps.eu/system/files/SR105%20Geopolitics%20of%20TTIP%20Hamilton%20and%20Blockmans.pdf>; M Wąsiński, ‘Europe Left Behind: Trans-Pacific Partnership and Its Impact on the EU’ (19 October 2015) Polish Institute of International Affairs No 92 (824) <https://www.pism.pl/files/?id_plik=20683>; K Binder, ‘The Trans-Pacific Partnership (TPP) Potential Regional and Global Impacts’ (European Parliamentary Research Service – Briefing May 2016) 12 <http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/582028/EPRS_BRI(2016)582028_EN.pdf>.

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91 D Nakamura, ‘Deal Reached on Pacific Rim Trade Pact in Boost for Obama Economic Agenda’ (5 October 2015) Washington Post <https://www.washingtonpost.com/business/economy/deal-reached-on-pacific-rim-trade-pact/2015/10/05/7c567f00-6b56-11e5-b31c-d80d62b53e28_story.html?utm_term=.90dacdc3f87e>.

92 Office of the United States Trade representative, ‘The President's Trade Agenda – 2016’ <https://ustr.gov/sites/default/files/2016-Trade-Policy-Agenda>.

93 C Malmström and J Hill, ‘Don't Believe the Anti-TTIP Hype – Increasing Trade Is a No-Brainer’ The Guardian (16 February 2015) <http://www.theguardian.com/commentisfree/2015/feb/16/ttip-transatlantic-trade-deal-businesses>.

94 C Malmström, ‘TTIP – What's in It for Labour, Environment and Sustainable Development?’ (6 November 2015) Blog Post <https://ec.europa.eu/commission/2014-2019/malmstrom/blog/ttip-whats-it-labour-environment-and-sustainable-development_en>.

95 R Brown, ‘Labor Implications of TPP’ (2016) Working Paper, East-West Center Workshop on Mega-Regionalism – New Challenges for Trade and Innovation) 16. <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2745524>.

96 Art 19(3) TPP.

97 Art 19(5) TPP.

98 Brunei Darussalam – United States Labour Consistency Plan (4 February 2016); United States – Malaysia Labor Consistency Plan (4 February 2016); United States – Government of the Socialist Republic of Viet Nam Plan for the Enhancement of Trade and Labour Relations (4 February 2016). Available at <https://ustr.gov/trade-agreements/free-trade-agreements/trans-pacific-partnership/tpp-full-text>.

99 Brunei Darussalam – United States Labour Consistency Plan, para II; United States – Malaysia Labor Consistency Plan, para II; United States – Government of the Socialist Republic of Viet Nam Plan for the Enhancement of Trade and Labour Relations, para II.

100 Art 19(12) TPP.

101 Art 19(11) ibid.

102 Art 19(11)(2) ibid.

103 Art 19(11)(6) ibid.

104 Art 19(15) ibid.

105 Art 18(20) ibid.

106 EU Textual Proposal (6 November 2015). Available at: <http://trade.ec.europa.eu/doclib/docs/2015/november/tradoc_153923.pdf>.

107 Art 4(2) Textual Proposal.

108 Arts 5–9 ibid.

109 Art 5(3) ibid.

110 Art 4(3) ibid.

111 Art 17(1) ibid.

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115 Páez, L, ‘A Continental Free Trade Area: Imperatives for Realizing a Pan-African Market’ (2016) 50(3) Journal of World Trade 549 Google Scholar. See also Angwenyi, V, ‘The Tripartite Free Trade Area: A Step Closer to the African Economic Community?’ (2016) European Yearbook of International Economic Law 589 Google Scholar.

116 D Sevastopulo, S Donnan and C Weaver, ‘Trump Pulls US out of Pacific Trade Pact’ Financial Times (23 January 2017).

117 See, for example, the proposed draft texts for the EU–Japan Economic Partnership Agreement. Available at <http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155726.pdf>.

118 European Commission, Non-Paper of the Commission Services, ‘Trade and Sustainable Development (TSD) Chapters in EU Free Trade Agreements FTAs’ (11 July 2017) available at <http://trade.ec.europa.eu/doclib/press/index.cfm?id=1689>.

119 See section IIIB.

120 Hafner-Burton (n 67) 141.