Labour provisions in trade agreements promote decent work

BRUSSELS (ILO News) – At the Trade and Sustainable Development Forum organized by the EESC, the ILO discussed the relevance of recent findings on the impact of labour provisions in trade agreements, and how the ILO supports its member states to effectively implement international labour standards.

The ILO’s involvement in trade policies stems from its foundational principles. Adopted in 1944, the ILO Declaration of Philadelphia affirms that in order to achieve lasting peace and social justice, it is the responsibility of the Organization to examine and consider all international economic and financial policies and measures in the light of this fundamental objective. “International labour standards are part of the level-playing field for fair and rules-based international trade. They underpin efforts by member States to achieve sustainable development through trade,” said Dan Rees, Director of the ILO’s Priority Action Programme on Decent Work Outcomes in Supply Chains.

Today, one out of three trade agreements notified to the WTO include labour provisions. Nearly half of trade agreements with labour provisions came into existence in the last decade. Seventy per cent of trade agreements with labour provisions reference ILO Fundamental Principles and Rights at Work, and more than half of them mention the ILO Fundamental Conventions.

There is also wide geographic coverage of trade agreements with labour provisions, with about 20% of them being South-South agreements. Importantly, ILO research shows that labour provisions in trade agreements support improved labour legislation, do not divert or decrease trade flows, and can help to support institutional capacity building.

“We see a growing demand from ILO constituents to support them to consider and implement labour provisions in trade agreements,” Rees said. The Organization responds with research, technical advice and training and promotes policy coherence within the multilateral system.

“We support increased social dialogue on trade” Rees concluded. The social partners’ expertise is key to informing negotiations, monitoring the implementation of labour provisions and the effectiveness of dispute settlement.

The ILO has frequent interactions with the WTO and organizations in the multilateral system. One such collaboration is the recently established inter-agency working group on trade and disability inclusion, which aims to promote disability inclusion in trade policies and support governments in integrating this issue into their trade and development agendas.