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1 1 (August 16, 2016)

handle is hein.crs/govceuq0001 and id is 1 raw text is: FF.ri E.$~ & August 16, 2016 TPP: Labor Provisions The Trans-Pacific Partnership (TPP) is a proposed free trade agreement (FTA) among the United States and 11 Asia-Pacific countries that would reduce and eliminate tariff and non-tariff barriers on goods, services, and agriculture, and establish trade rules and disciplines that expand on commitments at the World Trade Organization (WTO). Commitments address new 21 Century issues, such as digital trade and state-owned enterprises. Labor provisions in FTAs have evolved since the North American Free Trade Agreement (NAFTA), which was the first U.S. FTA that addressed worker rights in a side agreement committing the parties to enforce their own labor laws and to resolve disputes. The most recent U.S. FTAs with Peru, Colombia, Panama, and South Korea incorporate stronger language by which parties must adopt, maintain, and enforce core labor principles of the International Labor Organization (ILO). The TPP includes similar provisions as these agreements, in addition to three labor consistency plans with specific commitments in regard to worker rights for Brunei, Malaysia, and Vietnam. The scope and depth of provisions on worker rights are some of the more controversial issues surrounding the TPP. TPP proponents contend that FTAs are important policy tools that help raise labor standards by supporting economic growth and worker rights among countries with varying levels of development. They argue that FTAs influence foreign governments to respect workers' rights, protect children, eliminate forced labor, and improve working conditions. Opponents of TPP, such as labor unions and civil rights groups, are concerned that failure to promote and implement these rights could adversely affect working conditions and wages in other countries, as well as promote the transfer of U.S. jobs overseas. ILO Declaration on Fundamental Principles and Rights at Work (1998) e Freedom of association and the effective recomition of the right to collective bar)gaining; a a Elimination of all foims of compulsoy or o tforiced laborc; t Effective abolition of child aboi; and a Elimination of discrimination in respect of employment and occupation. Worker rights provisions in U.S. trade agreements have evolved over time. The North American Agreement on Labor Cooperation (NAALC), a legally binding parallel agreement to NAFTA signed by the United States, Canada, and Mexico, contains commitments for countries to enforce their own labor laws, a consultation mechanism for addressing labor disputes, and a special labor dispute settlement procedure. Seven subsequent U.S. FTAs included similar provisions in the main text of the agreements. More recent agreements have stronger provisions and incorporate core internationally recognized labor principles consistent with the ILO Declaration on Fundamental Principles and Rights at Work (1998) (ILO Declaration). TPP L ,,, Chapte,, The TPP contains similar worker rights provisions as those in the four most recent FTAs negotiated by the United States. These provisions are enforceable under the same dispute settlement procedures that apply to other provisions of the FTA, and violations are subject to the same potential trade sanctions. TPP parties agreed * to adopt and maintain laws and practices consistent with the ILO Declaration; * to adopt and maintain laws and practices governing acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health; * not to waive or derogate from labor laws and practices mentioned above in a manner affecting trade or investment; and * to effectively enforce their labor laws through a sustained or recurring course of action. Beyond these labor rights obligations, the TPP contains additional language stating that each party shall discourage, through initiatives it considers appropriate, the importation of goods produced in full or in part by forced labor, including child labor. For the first time in a U.S. FTA, the parties also explicitly agreed to protect against degradation of fundamental worker rights or working conditions in free trade zones or export processing zones. Parties also committed to encourage businesses to voluntarily adopt corporate social responsibility initiatives on labor issues. If a party believes that another TPP country is not meeting its labor commitments, the agreement establishes a means for the public to raise concerns with TPP governments through various commitments on transparency and procedural guarantees. The agreement also provides for a mechanism for cooperation and coordination, including opportunities for stakeholder input in identifying areas of cooperation. The TPP allows each party to retain its own discretion in allocation of enforcement and prosecutorial resources and does not empower a party's authorities to undertake labor law enforcement activities in another country. The agreement establishes a labor dialogue mechanism that may be used to resolve labor issues expeditiously and to help parties mutually agree on a course of action. The mechanism could include action plans with specific and verifiable steps such as labor inspection, investigation, or K~:> gognpo 'popmm ggmm g , q 'm a X 11LULKWALiN,

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