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                                                                                      Updated November  13, 2018

Worker Rights Provisions in Free Trade Agreements (FTAs)


Overview
Worker  rights have become 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
mechanisms. The renegotiation of NAFTA, completed in
September 2018, led to the new proposed U.S.-Mexico-
Canada Agreement  and a revised labor chapter.

International Labor Organization
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 and technical assistance,
but has no real enforcement authority. The World Trade
Organization (WTO)  does not address worker rights, as
members  were unable to reach consensus on the issue.

What   are the ILO  conventions?
The ILO has adopted 194 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 relevant ILO conventions:
elimination of forced labor and abolition of the worst forms
of child labor. As a result, U.S. FTAs do not include
commitments  to enforce the conventions themselves.

Are  any U.S. laws in conflict with ILO conventions?
The U.S. Tripartite Advisory Panel on International Labor
Standards of the President's Committee on the ILO has
found that U.S. law is at least partially inconsistent with
five of the core conventions: freedom of association; right
to organize/collective bargaining; 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.

Labor Provisions in U.S. FTAs
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  text did not include labor
provisions, causing considerable debate among
stakeholders. After his election, President Clinton
negotiated a side agreement to an already concluded, but
not yet in effect, NAFTA, called the North American
Agreement  on Labor Cooperation. 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. The full spectrum of dispute
procedures, including monetary penalties, applies to failure
to enforce a country's laws regarding three principles: child
labor, minimum wage, and occupational safety and health.
Other issues, such as freedom of association and the right to
organize are limited to ministerial consultations.
Jordan. The U.S.-Jordan FTA (2001) contained 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.
Trade  Promotion Authority of 2002. Seven U.S. FTAs
were negotiated under TPA-2002. These agreements went
beyond the scope of the Jordan FTA, but included one


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