3 minute read

5.2.What is the content of the labor chapters of the Free Trade Agreements?

economic activities, for the benefit of transnational corporations yet to the detriment of local economies, workers in all countries involved, tax revenues and the environment. PSI has highlighted the harmful effects of this type of trade agreements on public services such as education, health, pensions, telecommunications, transport, etc. In this regard, PSI has reaffirmed its commitment to fight to protect public services and the interests of workers providing public services from such agreements and to continue to defend a fair, democratic, multilateral trading system that is consistent with human rights obligations, promotes development, and preserves government policy space.10 PSI has stressed that the recent wave of trade agreements threatens the provision of quality public services by encouraging privatization, creating more rights for multinationals and delegitimizing governments by restricting their ability to regulate in the public interest. These agreements are also a threat to democracy. They are negotiated in secret, without consultation with democratic institutions, placing obligations on governments, present and future, without regard to the decisions of national elections, parliament and the courts. The defense of labor clauses contained in such trade agreements is risky because it requires an acceptance of unfair agreements in all respects, not only at the commercial level but also and especially at the level of provision of public services and living conditions of the working class.

5.2 What is the content of the labor chapters of the Free Trade Agreements?

Advertisement

The content of the labor chapters of FTAs usually includes references to respect of minimum labor standards, which are in accordance with ILO instruments, in particular with the Declaration on Fundamental Principles and Rights at Work and the Fundamental Conventions. Reference is made to the obligation not to fail to apply labor laws, including those aimed at respecting and protecting fundamental labor rights, in a way that affects trade or investment between the parties. Finally, the obligation to ensure that individuals have adequate access to the courts for the enforcement of labor laws is often highlighted. In addition, labor chapters usually establish various types of procedures to control compliance with the provisions of the Labor Chapter. In the case of the Free Trade Agreements that the United States has entered into bilaterally with several Latin American and Caribbeaan countries, the Labor Chapters include procedures for receiving individual complaints and procedures for monitoring the general implementation of the Labor Chapter. The monitoring procedures are

10. PSI Priorities 2018-2022”: http://www.world-psi.org/sites/default/files/en_poa_priorities_2018-2022_posteb153_0.pdf

usually linked to the general dispute resolution mechanisms provided for in the FTA and may ultimately lead to the constitution of an Arbitration Panel in charge of determining whether there was a breach of the Agreement by the “respondent” state and establishing recommendations. Failure to comply with the decisions or recommendations of the Arbitral Panel may lead to the suspension of benefits established in the Free Trade Agreement by the complaining state against the respondent state.

Diagram 5 COMMON CONTENT OF THE LABOR CHAPTERS OF FREE TRADE AGREEMENTS WITH THE U.S.

Labor Chapter of Free Trade Agreements with the United States

Supervision procedures Recognition of rights

Declaration on Fundamental Principles and Rights at Work

Fundamental Labor Conventions

Presentation of documents (to the Office of Trade and Labor Affairs of the U.S. Department of Labor)

Public Report (from the U.S. Secretary of Labor) Labor Affairs Council

a) Oversees the implementation of the Labor Chapter. b) It is also convened when a solution is not reached in the Cooperative Labor Consultations mechanism Dispute settlement mechanism

Activated when a solution is not reached in the Labor Affairs Council

Joint Labor Consultations (established to look for a solution agreement to the problems raised in the communication)

Author’s elaboration

Arbitration Panel

This article is from: