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                                                                                       Updated  December  18, 2020

Worker Rights Provisions in Free Trade Agreements (FTAs)


Worker  rights are a prominent issue in U.S. FTA
negotiations. Some stakeholders believe worker rights
provisions are necessary to protect U.S. workers from
perceived unfair competition and to raise labor standards
abroad. Others believe these rights are more appropriately
addressed at the International Labor Organization (ILO) or
through cooperative efforts and capacity building. Since
1988, Congress has included worker rights as a principal
negotiating objective in Trade Promotion Authority (TPA)
legislation. The United States has been in the forefront of
using FTAs to promote core internationally recognized
worker rights. Labor provisions have evolved significantly
since the North American Free Trade Agreement (NAFTA),
moving  from side agreements to integral chapters within
FTA  texts, with more provisions subject to enforcement.
The conclusion of NAFTA  renegotiations resulted in the
U.S.-Mexico-Canada  Agreement  (USMCA),   which
replaces NAFTA  and has a new labor chapter and
enforcement mechanism.  It entered into force in July 2020.


Most FTAs  with provisions on worker rights refer to
commitments  made  in the ILO. The ILO is the primary
multilateral organization responsible for promoting labor
standards through international conventions and principles.
A specialized agency of the United Nations, the ILO is
composed  of representatives from government, business
and labor organizations. It promotes labor rights through
assessment of country standards, monitoring, and technical
assistance. The ILO has complaint procedures, but limited
enforcement authority. The World Trade Organization
(WTO)  does not address worker rights, as members were
unable to reach consensus on the issue and defer to the ILO.

WhVat  ar  the 'L   cR- nvent0ms?
The ILO  has adopted more than 190 multilateral
conventions or protocols; eight are considered to be core
labor standards. The 1998 Declaration on the
Fundamental  Principles and Rights at Work incorporates
core principles from these eight conventions, to be adhered
to by all countries whether or not they are signatories to the
underlying conventions. The United States has endorsed
these principles, incorporating them in recent FTAs as
enforceable provisions. It has ratified only two of the core
ILO conventions: abolition of forced labor, and prohibition
and elimination of the worst forms of child labor. As a
result, U.S. FTAs do not include commitments to enforce
the conventions themselves.

A. r     L any U,N&aws in cflrcAi w i'h c LC cJ4cs?
The U.S. Tripartite Advisory Panel on International Labor
Standards of the President's Committee on the ILO has


found that U.S. law and practices are at least partially
inconsistent with five of the core conventions: right to
organize/ collective bargaining; freedom of association;
forced labor; minimum age; and equal remuneration. For
example, U.S. laws on prison labor may conflict with the
forced labor convention.
          The  1998 ILO Declaration Principles
     Freedom of association and the effective recognition to
     the right to collective bargaining.
     Elimination of all forms of forced or compulsory labor.
     Effective abolition of child labor and minimum age of
     work.
     Elimination of discrimination in respect of employment or
     occupation.

Lab)Or   Prviinsi UW             F~
Worker  rights provisions in U.S. FTAs, first included in
NAFTA   in 1994, have evolved significantly, from
requirements for parties to enforce their own labor laws,
and to strive not to waive or derogate from its laws as an
encouragement  to trade, to commitments to adopt, maintain,
and enforce laws that incorporate core ILO principles.
Other provisions address labor cooperation and capacity
building. Internationally recognized worker rights were
based on language in the U.S. Generalized System of
Preferences (GSP) statute and largely track the ILO
Declaration, but also refer to acceptable conditions
regarding minimum  wages, hours of work, and
occupational safety and health. Recent U.S. FTAs reflect
the negotiating objectives under TPA statutes. These
objectives have become more comprehensive over time.

NAFTA.   The original NAFTA  did not include labor
provisions, leading President Clinton to negotiate a side
agreement, called the North American Agreement on Labor
Cooperation (NAALC).   It contained 11 guiding
principles on worker rights in matters affecting trade,
technical assistance and capacity building provisions, and a
separate dispute settlement arrangement, along with a labor
cooperation mechanism. Full dispute procedures applied to
failure to enforce a country's laws regarding: child labor,
minimum   wage, and occupational safety and health. Other
issues, such as freedom of association and the right to
organize were limited to ministerial consultations, which
resulted in some bilateral and trilateral cooperation.

Jordan. The U.S.-Jordan FTA  (2001) contains labor
provisions that were incorporated into the agreement itself.
These provisions also became a template for future FTAs
and negotiating objectives in the 2002 TPA authorization.
While the provisions are enforceable, both countries
committed to resolve disputes outside of dispute settlement.


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