Africa: Linking Trade with Labour Standards for sustainable development

ABIDJAN/WASHINGTON (ILO News) – Linking trade and investment more effectively with internationally accepted labour standards at the country level is vital to achieve Agenda 2030 for sustainable development in Africa, stated Aeneas C. Chuma, ILO Regional Director for Africa at AGOA First Labour and Trade Ministerial Roundtable held in Washington D.C., USA.

“How to work together to improve the institutions and policies covering trade and labour so that optimal labour market outcomes can be achieved in the economies involved in trade”, Aeneas Chuma questioned the audience in the presence of ministers from 14 African nations, the United States Trade Representative, Michael Froman, and US Secretary of Labour, Thomas Perez.

The 2016 African Growth and Opportunity Act (AGOA) Labour and Trade Ministerial Roundtable, which is held on 22-23 September in conjunction with the AGOA Forum brought together for the first time trade and labour ministers from sub-Saharan Africa.

“Today, all of us participating in this inaugural Labour and Trade Ministerial are making history. The AGOA framework provides a powerful basis for our efforts to build a mutually reinforcing relationship between trade and labour policies to achieve sustained economic growth and simultaneous advances in human development through Decent Work”, Chuma underscored.

A statement reinforced by US Secretary of Labour, Thomas Perez in his blog: “Bringing trade and labour ministers to the same table brings us one step closer to a vision of inclusive economic growth, where all of us work together toward an outcome that serves the interests of businesses, workers, communities and nations as a whole”.

“Trade initiatives that integrate supportive labour provisions can significantly help to increase productivity and exports while pulling people out of poverty. Integrated trade and labour can also help to grow the middle class by creating greater opportunities for businesses, lower costs for consumers, better jobs for workers and new and more transformative opportunities for developing countries, Perez stressed.

The two-day ministerial meeting supported by US DoL is aiming at forging greater African government policy coordination that advances internationally recognized worker rights and sustainable economic development in the context of trade and investment.

Labour and Trade

Internationally recognized labour provisions do not harm or divert trade but are key to achieve sustainable development in Africa, the ILO Assistant Director-General and Regional Director for Africa highlighted.

But “we also recognize that sustainable development does not automatically follow from trade and investment promotion, but that accompanying policies are required”, he added.

At present, a quarter of the value of trade taking place within trade agreements falls under the scope of such provisions, and this share is expected to grow in the future. In the majority of cases, these provisions refer to internationally accepted labour standards championed by the ILO.

However, “the greatest challenge facing many developing countries today is to translate access to markets and capital in production networks to employment opportunities and decent work for all. Our current failure to do so has not only hampered growth but also driven inequality to unacceptable, indeed un-sustainable levels”, Chuma emphasized.

“We must break down the silos and apply a more integrated approach to policy making and implementation (…) while boosting the role of workers’ rights within the AGOA framework”, the ILO Director for Africa concluded by urging member states to work towards a better coordination between trade and labour policies.

A call echoed by US Secretary of Labour, Thomas Perez in his blog: “That is why the worker rights eligibility component of our AGOA law is so important. Strong and increased trade, coupled with effective protection of worker rights, is a sturdy framework upon which inclusive growth can be supported”.