Trade and labour in uncertain times

BRUSSELS (ILO News) – With the support of the government of Flanders, the ILO Office for the EU and the Benelux countries and the Leuven Centre for Global Governance Studies held a hybrid seminar on "Trade and labour in uncertain times – Shaping Africa's future in the global economy”. The event brought together representatives of governments, workers' and employers' organizations, the European Commission and broader civil society for a wide-ranging discussion on how trade can better support decent work outcomes across the African continent.

The seminar presented key findings of the forthcoming ILO report "Trade, Investment and Decent Work in Africa: Evidence and Stakeholder Perspectives" and followed with a broader exchange on integrating trade and labour in the African region.

In her opening remarks, Fanfan Rwanyindo Kayirangwa, ILO Regional Director for Africa, underlined the importance of inclusive dialogue: "By bringing together tripartite constituents to engage in meaningful social dialogue, we work to ensure that trade delivers shared prosperity."

Professor Jan Wouters, Director of the Leuven Centre for Global Governance Studies at KU Leuven, echoed this message, stating that "trade should serve people, not the other way around" and highlighting that Europe has a key role to play in creating an enabling environment to ensure that trade does not deepen inequality and erode trust.

Caroline Fredrickson, Director of the ILO Research Department, and Marva Corley-Coulibaly, Programme Manager and Senior Economist, presented the upcoming ILO report. Moving from recent global employment trends to Africa-specific perspectives, gained from consultations with stakeholders in Ghana, Kenya, Mozambique, South Africa, and Uganda, the presenters made the case that trade can support industrialisation and structural transformation in Africa, and that labour provisions in trade agreements can support institutions to implement decent work objectives.

Key findings drawn from the report indicate that trade is seen as a catalyst for human and productive capital development, while at the same time posing challenges for employment opportunities. These effects are distributed unevenly across sectors – particularly the agriculture sector where informal employment represents upwards of 80% of workers.

The report also found that labour provisions in trade agreements are valued by stakeholders as an important instrument for setting labour standards and providing a framework for social dialogue.

The presentation was followed by a roundtable discussion moderated by the ILO-Brussels Director, Carlien van Empel. Panellists highlighted both synergies and tensions between trade and labour, with trade agreements widely seen as important vehicles for promoting labour standards.

Ambassador Daniel Tanui of the Kenyan Embassy in Brussels reflected on the practical implications of new regulatory frameworks for African exporters, noting that they can create both incentives for improvement and risks of exclusion. He underlined the importance of the African Continental Free Trade Area (AfCFTA), particularly its Investment Protocol, to set common labour standards across the continent.

Jörg Wojahn from the European Commission, DG Trade, highlighted EU instruments such as the Generalised Scheme of Preferences (GSP) and the Corporate Sustainability Due Diligence Directive (CSDDD), stressing that trade agreements must be complemented by capacity-building and initiatives like the Global Gateway to effectively strengthen international labour standards.

Axel Marx from the Leuven Centre for Global Governance Studies, underscored that labour provisions are most effective when implemented gradually and backed by credible enforcement mechanisms and adequate resources. Giulia Baconcini from the Belgian Investment Company for Developing Countries (BIO) added that combining investment conditionalities with technical support can help improve working conditions across supply chains – particularly in contexts marked by high levels of informality.

The discussion continued with reflections from representatives of the International Organisation of Employers (IOE) and the International Trade Union Confederation (ITUC). Amadou Sako (IOE) highlighted structural challenges to decent work in Africa, such as high informality, low productivity and skills mismatches, stressing that greater policy coherence and stronger social partner capacity are key enablers for compliance with labour provisions. Diego López González (ITUC) emphasised trade unions' demand for a stronger voice in trade policy and more robust dispute settlement mechanisms.

In her closing remarks, Rani De Leeneer, Adviser Foreign Affairs at the Cabinet of the Minister-President of Flanders, emphasised that Flanders is a long-standing partner of the ILO's integrating trade and decent work initiatives and attaches great importance to the respect for labour rights and environmental standards.

The ILO IMPLEMENT project "Trade and Investment Arrangements: Implementation and Stakeholder Engagement for Promoting Decent Work" is funded by the Government of Flanders, Belgium, and is one component of a broader research programme entitled "Integrating Trade and Decent Work" (INTEGRATE). The project aims to enhance the capacity of stakeholders in African and Asian countries to implement initiatives that support decent work in the context of trade.