Jean-Marc Siroën Université Paris Dauphine · 2009. 8. 29. · Agreements (IFA) Codes of conduct, Ethic Charter, etc. Certification labelling SA 8000 Mode of drawing up social requirements

Jean-Marc SiroënUniversité Paris Dauphine

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2008, « The Use, Scope and Effectiveness of Labour andSocial Provisions and Sustainable Development Aspects inBilateral and Regional Free Trade Agreements », Rapportpour la Commission Européenne, DG Emploi (with F.Arestoff, R. Bazillier, C. Granger, C. Duc).

2009, "Cases to include labour standards in WTO" (avec C.Granger), à paraître dans J.-ren Chen, Ch. Smekal & K.Socher eds. Contributions to the Studies of InternationalGranger), à paraître dans J.-ren Chen, Ch. Smekal & K.Socher eds. Contributions to the Studies of InternationalInstitutions to Global Governance, University of Innsbruck.

2006, Core Labor Standards in Trade Agreements.Frommultilateralism to bilateralism, (avec C. Granger), Journal ofWorld Trade, 40:5, octobre, p. 813-836.

2005, « La clause sociale dans les traités commerciaux »(avec C. Granger), in I. Daugareilh eds., Travail, droitsfondamentaux et mondialisation, Bruylant-LGDF.

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Internationalcommitments

InternationalInternationalLabour

Organisation(ILO)

WTO ?Trade

Agreements

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National

Sub-National(States, Province,…)

Issue : ratificationof international

agreementsconcerning sub-national levels?


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Trade Agreements and the labor standardissue

Why to include labor standards in TradeAgreements ?

Positions and expectations of actors andPositions and expectations of actors andstakeholders

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Labor standards were abandoned with thefailure of the Havana Charter (1948)

WTO Singapore ministerial declaration (1996):“The International Labour Organization (ILO)is the competent body to set and deal with[core labor] standards »[core labor] standards »

Despite US and EU’s support (Seattle, 1999), negotiations on labor standards have beenexcluded from the Doha’s agenda

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Declaration on fundamentalprinciples and rights at work

(1998)

Decent Work Agenda(2000)

1. Freedom of associationand right to collectivebargaining (conventions 87and 98)

2. Prohibition of forced labor

1. fundamental principlesand rights at work andinternational labourstandards;2. Prohibition of forced labor

(conventions 29 and 105),3. Prohibition of

discrimination at work(conventions 100 and 111)

4. Minimum age for childlabor (convention 138).Convention 182 has beenadded to fight against theworst forms of child labor.

standards;2. Opportunity of work that

is productive and deliversa fair income ;

3. Social protection andsafety at work;

4. Social dialogue andtripartism.

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US Trade Act of 2002 EU's Decent WorkCommunication of 2006

Trade agreements musthave the objective “topromote respect forworker rights and therights of childrenconsistent with core labor

Efforts to promote socialstandards and decentwork in tradenegotiations beyond thesimple respect for corelabour standards.consistent with core labor

standards of the ILO”. There are social clauses in

recent US bilateral tradeagreements: NAFTA, US-Cambodia textileagreement Jordan,Morocco, Singapore,CAFTA, Bahrain, Oman,Peru, Colombia, Panama,South Korea….

labour standards. No binding clauses :

South Africa, Mexico,Chile, Cariforum, SouthKorea.

Presently, linkage “decent work” and sustainable development (commonchapter)

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In red : dispute settlement mechanism and/or sanctionsPensar globalmente, agir localmente? Belém, 29 de Janeiro de 2009

Countries Other Agreements

Mercosur SocialDeclaration

Canada-Chile ; Canada

Internationalcommodity agreements(coffee,…)Generalized System of

Canada-Chile ; CanadaCosta-Rica

Chile-Columbia, SouthKorea, Japan

Japan-Philippines

Generalized System ofPreferences (withincitations)

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Paradox : Canada (5/8) and United States have ratified fewfundamental conventions. One reason is that only subnationallevels are relevant to deal with the obligations of theconventions

Pensar globalmente, agir localmente? Belém, 29 de Janeiro de 2009

The four mainThe four maintargets


1) Protection against « social dumping »2) Promotion of universal rights3) To deal with FTA’s undesirable effects 4) To support decent work

Traditional argumentsimplying sanctions(mainly : USA)

New argumentsimplying cooperation4) To support decent work

and sustainable development

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implying cooperation(mainly EU)

Pensar globalmente, agir localmente? Belém, 29 de Janeiro de 2009

Firms do not respect « normal » practices (nationallaw, international commitments including ILO’s core labor standards) for a competitive purpose.

Prevention against « Race to the bottom » mechanism(prisoner’s dilemma)

Inclusion in the Havana Charter (1947) and Inclusion in the Havana Charter (1947) andPhiladelphia Declaration (ILO, 1944)

Present in almost all agreements dealing with labour.Mutual recognition of national labor laws, which mustbe applied

In case of violation : private action to concernednational jurisdiction and/or dispute settlementmechanism


Hard position : No trade with countries violating theuniversally recognized rights of workers

Soft position : Trade agreements are an incentive to improveworker’s rights

In almost all agreements : reference to ILO’s Declaration on Fundamental Rights (preamble, social chapter, annex)

Explicit and applied sanctions in GSP (Belorussia, Myanmar) « Positive sanctions » : GSP+, US-Cambodia Accusation of protectionism : The comparative advantage of

developing countries in labor-intensive goods must berespected by industrialized countries. It is less costless forrich countries to respect universal principles than for poorcountries.


FTA is supposed to have global positiveeffects, but letting off « losers » : rural class,low-skilled workers in import competingsectors,…Actions to prevent those undesirable effects :Actions to prevent those undesirable effects :

Upper side: Trade Sustainability ImpactAssessment (EU)

Down side : follow-up, assistance


General evolution to include a social and« sustainable development » dimension in allinternational agreements

Trade agreements must take into account thesocial dimension of globalization andsocial dimension of globalization andcontribute to sustainable development

Action : incentives, assistance, cooperation


Not only model. The nature and the content ofprovisions are significantly different betweencountries and for one country.

Frequently respectful of national labor laws underthe commitment of “no social dumping”Trade Sanctions have never been used (except GSP). Trade Sanctions have never been used (except GSP).Dissuasion and incentive effect? Probably yes.

NGOs and Trade Unions more active what wouldimprove the respect of national laws.

The US-Cambodia textile agreement is considered asa success. It binds more exports to a better respectof labor rights; improvement of labor rights andtrade, incentives to reduce informal work.


International Organizations,Trade Unions, NGOs,Trade Unions, NGOs,employers' organizations,Parliaments


Singapore’s doctrine : Labour standards arenot a matter of concern for trade agreements.Only ILO is competent. Social clauses areprotectionist. International association of employers,many developing countries, some developed countries

Alter-globalist doctrine : provisions areinsufficient to balance the negative effects of

Alter-globalist doctrine : provisions areinsufficient to balance the negative effects ofFTAs. Many Trade Unions (AFL-CIO) and NGOs

Universalist doctrine : FTAs as a support forthe promotion of universal human rights,decent work, environment, sustainabledevelopment. EU and Parliaments, human rights (“droits-de-l’hommiste”) NGOs.

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WTO : probably nothing(no consensus)

Propositions to revisitexisting texts (Preamble,

article XX)

ILO : very activistEnlargment to « decent

work »Assistance, monitoring,surveillance, Following-

up

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Other OrganizationsUnited Nation

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More prevention againstsocial clauses inSouthern civil society

Inside NGOs differencebetween South Defenders(ex. OXFAM) and humanrights defenders (ex. :

“Counter-Power” function of the civilsociety

Technical assistanceParticipation to Ex-

Lines of fragmentation Influence andparticipation

rights defenders (ex. :FIDH)

Competition betweenTrade Unions and NGOsto deal with laborstandards.

Participation to Ex-ante (SIA) and ex postimpact assessment andfollowing-up

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CriteriaInternationalFramework

Agreements (IFA)Codes of conduct,

Ethic Charter, etc.CertificationlabellingSA 8000

Mode ofdrawing upsocialrequirements

Discussed andnegotiated with

national orinternational unions

Unilateral (companymanagement)

Independent body(SAI)

Scope ofCompanies

controlled by the Company, suppliersCompany, suppliersand subcontractors

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Scope ofapplication

controlled by thesignatories and

contracting partners

Company, suppliersand subcontractors

and subcontractors

Inspectionmethods Not usually provided Variable

Audits performed byaccredited

independent auditors

Sanctions Potential suspensionof cooperation

Variable. May go asfar as terminatingtrade relations (

Certificate notgranted or rescinded


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Labor and social clauses have not been used as aprotectionist instrument. They have beenrespectful of national laws and nationalsovereignty

Probably few and positive effects : incitation toimprove law and to apply it, more activism fromTrade Unions and NGOs, pressure on firms.improve law and to apply it, more activism fromTrade Unions and NGOs, pressure on firms.

Large spectrum of opposition between the « toomuch » and the « not enough »

Marginalization of trade Multilateralism that iscircumvented by bilateral agreements

New fields of intervention for ILO.

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Documents

Jean-Marc Siroën Université Paris Dauphine · 2009. 8. 29. · Agreements (IFA) Codes of conduct, Ethic Charter, etc. Certification labelling SA 8000 Mode of drawing up social requirements