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Labor Standards in International Economic and Trade Agreements: New Breakthroughs and Relevant Impacts (No.25, 2021)

Mar 29,2021

By Luo Yuze, Research Team on “WTO Reform Trends and Key Issues”, Research Department of Foreign Economic Relations, DRC

Research Report, No.25, 2021 (Total 6090) 2021-3-1

Abstract: International Labor Standards have become further integrated through the implementation of free trade agreements (FTA), which have become a new issue in terms of international economic and trade rules in the new century, and are regarded as standards for high-level free trade agreements. Although the United States withdrew from the TPP (Trans-Pacific Partnership Agreement), the Agreement sponsored by the U.S. has made new breakthroughs in International Labor Standards, forming a relatively complete, disciplinary, practicable and enforceable framework. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has kept intact the Chapter on Labor, whereas the possible changes in the exchange of notes might induce the following multiple impacts. First, they would strengthen the general binding force of International Labor Convention. Second, they would influence but will not change the divergent positions of WTO member countries including developed and developing nations on the labor issue. Third, they would play a catalytic role in promoting the proliferation of the Standards in bilateral regional economic and trade agreements. Fourth, they would exert both positive and negative impacts on the signatories. Fifth, they would bring about an extended limiting effect on non-contracting parties.

Keywords: International Labor Standards, trade agreements, CPTPP, impacts