Labour provisions in in G7 countries a comparative analysis Marva Corley-Coulibaly, ILO Research Department
. Trade, decent work and sustainable development 2030 Devel elop opment ment Agenda da SDG 8: full and productive employment and decent work for all. Goal 17: inclusive, non-discriminatory and equitable multilateral trading system. 2016 WTO Publi lic c Foru rum on inclusive usive trade de Discussed how a wider range of businesses and individuals can benefit from trade through WTO rules. 2018 Annual al Meeti ting ng for the IMF F and WB WBG “new multilateralism,” which was described as a “more inclusive, people -centred, and results- oriented” international system that would facilitate cooperation. 2019 ILO Commiss mmission ion on the Future ure of Work “The success of the human -centred growth and development agenda we propose depends heavily on coherence across between trade, financial, economic and social policies.” 2018 ILO LO/OE OECD Glob obal Deal l for Decent nt Wo Work k and d Inclusive sive Growth owth “The realities of the international trade… have created challenges as well as opportunities to promote social dialogue as a route towards sound industrial relations and improved labour rights”
What are the links between trade and decent work? 1) Emp mploym yment ent cr creation on • At the aggregate level, positive relationship • But, a lot of heterogeneity across countries & sector-, firm-level • Better understanding of winners and losers 2) Job b qu quality • Informal employment : some evidence supporting increase • Inequality : increase in wage inequality; but no consensus on magnitude • Working conditions : labour standards The impact of trade by itself not clear-cut Institutions play an important role Using labo bour r pr provisi sions ons an option?
One – third of trade agreements include labour provisions… … half of those are represented by G7 countries G7 TA with th LP (%) 300 Trade-rel elate ated d labour ur provi visio sions ns are: Japan 250 12% (i) any standar dard which EU addresses labour relations 37% Canada 24% or minimum working terms 200 or conditions US Total TA 27% 293 150 (ii) any mechan hanism sm for monitoring or promoting compliance 100 Total TA with LP (iii) any framew ework for 85 50 cooperation, dialogue and/or monitoring of G7 TA with LP 45 labour issues 0 1958 1960 1961 1971 1973 1976 1977 1981 1983 1985 1986 1987 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: ILO Research Department
Global overview of TAs with LPs 24 EU EU 18 18 TA with thout LP LP TA with th LP LP 2 24 CANADA 12 12 1 US US 6 13 13 JAPAN AN 11 11 Nr. . of TA with th LP LP Source: ILO Research Department
There are 45 G7 TAs with LPs 92 Countries covered US$ 319 billion imports US$47 trillion GDP US$ 330 billion exports 1.2 billion workers *T otal between G7 and partner countries Source: ILO Research Department
Key characteristics of labour provisions in G7 trade agreements How to facilit ilitate ate compliance? iance? What arrang ngements nts for imple lementati ntation? n? Technical and cooperative activities • Platform for social dialogue, domestic & • Exchange of information/best • cross border, monitoring practice Reinforce inclusion, transparency, and • accountability Coope perat ration Institutional al and d What are the oblig ligati ations? ns? Arran angeme ments How to enforce ce? Deve velopme ment General statements of intent • Public submissions • Substantive obligations • Consultations; Panels • Language is an important • Sanctions • Dispu spute Obli liga gations overarching aspect Settleme ment Overview With h differ feren ent level els of bind ndin ingnes ess
G7 at a glance: Latest developments US Canada EU Japan USMCA* CETA EU-JAPAN EU-JAPAN CPTPP EVTN* CPTPP › Separate labour & › Separate labour & › Integrate environment › Separate chapters in environment environment chapter; Location o & labour chapter; also CPTPP; integrated in EU- chapter; also in ROO also in investment in cooperation pillar Japan › Fundamental › Fundamental › Sector specific › Fundamental Conventions Obligation Conventions in CETA Conventions; other ILS minimum wages (EU-Japan) › Working groups › Consistent civil society › Platforms to engage with › Annex 23-A: labour Implemen- (ITAG); Peace Clause o involvement laws in Mexico (CB) civil society tation › Same as CPTPP & EU- › Different mechanism › Different mechanism › Same mechanism as Japan from other chapters from other chapters other chapters DSM (ex. CPTPP) › Sanctions allowed › Sustained consultation › CPTPP: Trade and dialogue sanctions allowed
Obligations and references in TAs since 2009 US Canada EU Japan • Not to derogate/waive/lower Obligations • Effective implementation of EU-Japan domestic laws CPTPP • ILO 1998 Declaration FPRW EU-Japan CPTPP • Reference Effective EU (CETA) to CLS ratification/implementation of EU-Japan* ILO Fundamental Conventions • Acceptable conditions of work CETA CPTPP Other ILS • Except Rep of Korea DecentWork Agenda EU-Japan • Social Justice Declaration • Gender EU-Japan* Other CPTPP references • CSR
Stakeholder involvement in TA Institu itutiona tional l arrang rangeme ments ts • National Advisory • MAIN ROLE: Provide advice and views on Committee US implementation • Public submissions • The EU underpins the transnational aspect • Domestic Advisory • US/Canada: also rely on informal mechanisms, and Groups (national) deep investigation of public submissions (cross- EU • Civil Society Forum border) (transnational) • COMPOSITION: Social partners and other stakeholders • National advisory Canada bodies (CETA, Canada- • Ukraine, CPTPP) All have a feedback mechanism that has been • Public submissions progressively strengthened Japan EU-Japan/CPTPP
Dispute settlement process • • Based on Panel’s report the Panel, which includes labour • • Consultations are mandatory The Submission is accepted parties may agree on an experts (exc. Japan) provides by Government or state body action plan or remedial decision report measures 4th 1st 2nd 3rd Panel/Arbitral Activation Consultations Remedies tribunal • Canada/EU use labour/SD • • Canada/US/Japan: possibility of • US/Canada provide for US/Canada : two-step specific panels; US/Japan uses sanctions. public submissions. consultation process. mechanism for the whole TA. • • EU: Follow-up via institutional EU: DAGs, CSF may submit • US/Japan : options for ADR such • Panel can consult external arrangements. views and opinions. as good offices, mediation sources & some allow for 3 rd party (Canada only in CPTPP). written submissions. Parties can negotiate an action plan at any time
Cases of Dispute Settlement in G7 FTAs PANEL/ARBITRAL SUBMISSION/ ACTIVATION REMEDIES CONSULTATIONS TRIBUNAL ISSUED OPINION • US request panel (2011) Consultations (2011) Report issued (2009) • S&E Plan agreed (2013) • Meeting of Free CAFTA-DR: • Re-activation of Panel (2014) FINAL Trade Commission. GUATEMALA REPORT • Final report issued (2017) in (2008) 2017 favour of Guatemala Report issued (2017) Action Plan adopted CANADA – ACTION (2018-2021) COLOMBIA PLAN (2016) 2018-21 • EU DAG requested • Request for Commission to activate consultations EU EU – KOREA • DS (2014) (December 2018) requests (2013) • • Follow-up TSD, CSF Consultations evidence* • • (2014-2018) (January 2019) Parties continue to dialogue at all stages of the process
The role of the ILO in TAs • The ILO provides advice and technical expertise on the design and enforcement (directly or indirectly) of labour provisions. • The ILO is directly involved in the implementation of labour provisions through its development cooperation programmes. • The ILO examines trends, implementation and effectiveness of labour provisions and provides training to social partners. • The ILO engages with and participates in networks and forums with other international trade organizations
Looking Forward Continue inue to facili cilitate ate ratific ificatio ation n and effective ective imp mplement lementatio ation of ILO O Fundamental amental Convent entions ions Better er coordin rdination ation of spaghett hetti i bowl of of develop elopment ment assistance istance activit ivities ies Facil cilitat itatin ing regula lar dialo logue gue in th the committees mmittees and working king groups ps Sh Sharin ring g platforms forms with IOs for engagem gement ent with h trade de advisory isory groups ps Ho How w can can th the ILO best t assist ist its ts me memb mber ers?
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