Labour Chapters in Trade Agreements: The Solution for a Universal Standard of Labour Rights

Abstract

This paper provides a critical analysis of the inclusion of labour chapters in trade agreements. It surveys basic labour rights and the justifications for linkage of trade and labour in the agreements. It then compares and critiques the approaches taken by the United States, New Zealand and the European Union towards labour chapters in their trade agreements. It deconstructs the agreements to assess how effective each agreement is at the promotion and enforcement of labour rights. This paper then discusses the potential of labour chapters leading to a set of universal labour rights that are applicable for all states. It canvasses positive and negative incentives placed in trade agreements by states to ensure compliance with basic labour rights by trading partners, focusing particularly on the Cambodia-United States Bilateral Agreement on Textiles. In conclusion this essay finds that although free trade agreements will not be the ‘magic bullet’ for a universal standard of labour rights, they are a positive force in international labour law and contribute to the establishment of such a level.