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1 1 (October 25, 2023)

handle is hein.crs/govenhg0001 and id is 1 raw text is: Congre &onaI les hfarming Ih leg ilive deba 3rch Service since 1914 Updated October 25, 2023 Worker Rights Provisions in Free Trade Agreements (FTAs) Worker rights have generally been a prominent issue in U.S. FTA negotiations. Some stakeholders believe worker rights provisions are key to protect U.S. workers from perceived unfair competition and to raise labor standards abroad. Others believe such 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 generally been in the forefront of using FTAs to promote core internationally recognized worker rights and principles. Labor provisions have evolved significantly since the 1994 North American Free Trade Agreement (NAFTA), moving from side agreements to integral chapters within FTA texts, with more provisions subject to enforcement. Most recently, the renegotiation of NAFTA resulted in the 2020 U.S.-Mexico- Canada Agreement (USMCA), which set new precedents within its labor chapter and labor enforcement mechanisms. The Biden Administration's trade initiatives, while not envisioned as comprehensive FTAs, include labor provisions, which may reflect aspects of past U.S. practice. International Labor Organizaton Most U.S. and other FTAs with provisions on worker rights refer to commitments made in the ILO, the primary multilateral organization responsible for promoting labor standards through international conventions and principles. A specialized agency of the United Nations, the ILO comprises representatives from government, business and labor organizations. It promotes labor rights through assessment of country standards, monitoring, and technical assistance. While the ILO has complaint procedures, it has limited enforcement authority. World Trade Organization (WTO) rules do not address trade-related labor standards, as WTO members were unable to reach consensus on the issue and deferred to the ILO on such matters. The ILO has adopted more than 190 multilateral conventions or protocols; eight are deemed core labor standards. The Declaration on the Fundamental Principles and Rights at Work, adopted in 1998 and amended in 2022, incorporates core principles from these eight fundamental conventions, to be adhered to by all countries whether or not they are signatories to the underlying conventions. The ILO Declaration Principles and Rights Freedom of association and the effective recognition of the right to collective bargaining; Elimination of all forms of forced or compulsory labor; Effective abolition of child labor; Elimination of discrimination in respect of employment and occupation; and Safe and healthy working environment. The United States has endorsed these principles, working them into recent FTAs as enforceable provisions. It has ratified two of the core conventions on forced labor and on the worst forms of child labor. As a result, U.S. FTAs do not include commitments to abide by and enforce the ILO conventions themselves. 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 (e.g., U.S. laws on prison labor) are at least partially inconsistent with five of the core conventions. Labor Provisions in US. ETAs Worker rights provisions in U.S. FTAs, first included in NAFTA, have evolved significantly, from requirements for parties to enforce their own labor laws, and to strive not to waive or derogate from such laws as an encouragement to trade, to commitments to adopt, maintain, and enforce laws that incorporate core ILO principles. Other FTA provisions address labor cooperation, capacity building, and dispute settlement (DS). The FTA term internationally recognized worker rights is based on language in the U.S. Generalized System of Preferences (GSP) statute and largely tracks with the ILO Declaration, but also diverges (e.g., referring to acceptable conditions regarding minimum wages, hours of work, and occupational safety and health). Recent U.S. FTAs have reflected negotiating objectives on labor under TPA statutes. With each reauthorization, TPA objectives have evolved and generally become more comprehensive. NAFTA. The former North American Agreement on Labor Cooperation (NAALC), a side agreement to NAFTA, contained principles on worker rights in matters affecting trade, technical assistance and capacity building provisions, and a separate DS process, along with a labor cooperation mechanism. Full dispute procedures applied to enforcement of certain labor laws, not including the right to organize. Jordan. The U.S.-Jordan FTA (2001) contains labor provisions that were incorporated into the agreement itself. These provisions 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. TPA-2002. Seven U.S. FTAs were negotiated under TPA- 2002. These agreements went beyond the scope of the Jordan FTA, but included one enforceable labor provision: a party shall not fail to effectively enforce its labor laws in a manner affecting trade. Labor laws were defined as rights similar to the GSP statute. Dispute procedures placed limits on monetary penalties, unlike those for commercial disputes. The FTAs also included commitments not to derogate from labor laws to encourage trade; provisions for cooperation and capacity building to improve labor standards; and creation of a labor affairs council.

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