Answers:

Over the past few decades, some of the parties about the debate over the enforcement of workers’ rights through trade agreements seemed to assume that this approach would restrict such agreements in ways that would have a negative impact on the liberalization of world trade, ultimately resulting in another protectionist backlash from the developed countries. However, today’s trade agreements are increasingly seen to include provisions for respect of labour rights, which have thus become an integral part of trade negotiations with the aim of making the globalization process fairer by extending its benefits. The debate now appears to be focused on which mechanisms and procedures could prove most efficient in attaining this goal.


The need to create a minimum social foundation for the development of trade—one that guarantees certain safeguards against social dumping—has inevitably resulted in the signing of an increasing number of free trade agreements (FTAs) which include a labour dimension, either in the agreement itself or in a parallel agreement. Typically, not only do such labour clauses list minimum commitments for the protection of human rights at work, but they also provide for conflict resolution systems, funds and parallel labour cooperation, and financial penalties. Indeed, a growing number of bilateral trade cooperation agreements — particularly those signed by Canada, the United States and the European Union — contain social and labour provisions along those lines. For example, the European Union’s special incentive arrangement for sustainable development and good governance (Generalized Schemes of Preferences/GSP+) provides additional benefits for countries implementing certain international standards in regard to human and labour rights, environmental protection, drug trafficking and good governance. In practice, the European Union’s GSP is implemented by means of Council regulations.