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Trade and International Labor Standards: Regional integration, trade agreements and unilateral preferences

Regional Integration | Unilateral Preferences | Free Trade Agreements

 

 

Regional Integration

Andean Community (CAN)

In 1994 the Andean Parliament approved the Andean Social Charter , through which Parliament requests Member Countries of the Andean Community recognize as rights of the Andean workers, the freedom of association, adequate protection in occupational health and security and the elimination of discrimination in employment, among others. Likewise, the Charter prompts Member Countries to develop tools and execute initiatives on children's rights. The Andean Social Charter is not biding for member countries of the CAN.

The Andean Charter for the Promotion and Protection of Human Rights In SpanishPDF, adopted in 2002, reaffirms the obligation to enforce labor rights and obligations on compulsory work, fair and satisfactory working conditions, and freedom to unionize. It is established in this Charter that the Andean Council of Ministers of Foreign Relations should decide upon the binding effect of this document. Decision No 586 Word of the Council of Ministers of Foreign Relations, establishes the work program for the dissemination and implementation of the Charter.

Caribbean Community (CARICOM)

In 1995, CARICOM presented the Declaration of Labor and Industrial Relations Principles which sets out the general Labor Policy to which the Region aspires including in issues of freedom of unionization and other collective worker rights, forced labor, fairness in work, and child labor. This Declaration is complemented by the 1997 CARICOM Charter of Civil Society in which fundamental labor rights are recognized.

Furthermore, CARICOM has developed model regulations to standardize the treatment of equal opportunity at workPDF, occupational health and safetyPDF, and registration and recognition of unions and employers' organizationsPDF. These model regulations have been accepted by the CARICOM Standing Committee of Ministers responsible for Labour (SCML). The laws have also been recommended to the Member States for their discussion and national adoption.

Common Market of the Southern Cone (MERCOSUR)

The MERCOSUR Social-Labor Declaration En español adopted a set of principles and rights at work. Among them are included promotion of equality, elimination of forced labor, minimum age for work and other rights of minors, union freedom and collective labor rights, like rights to health and safety at work. A Social-Labor Commission was created with the aim of ensuring follow-up and monitoring compliance with the Declaration. This Commission is an auxiliary entity of the Common Market Group of MERCOSUR that is promotional in nature and not punitive.

Central American Integration System (SICA)

The Central American Social Integration Treaty En español provides that Member States of the system should act against discrimination in general.

Flecha amarillaUnilateral Preference Schemes

The benefits granted by the United States under the US Generalized System of Preferences (GSP), the Caribbean Basin Initiative (CBI) or the Andean Trade Preference Act (ATPA), are subject to compliance with the implementation of commitments to eliminate the worst forms of child labor. The level of effort that countries make in relation to internationally recognized labor rights of their workers can also affect the eligibility of a country as a beneficiary.

The Generalized System of Preferences of the European Union (GSP+) benefits developing countries considered vulnerable that have ratified and effectively enforce 27 key conventions of the United Nations and the ILO, on human rights and especially labor rights. The countries of the Americas that benefit from this scheme starting on January 1, 2009, ending on December 31, 2011 are: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru and Venezuela.

Flecha amarillaFree Trade Agreements

The regulation on labor standards negotiated under FTAs or economic association agreements differ both in the number of issues covered and the level of commitment agreed to by the parties. The topics mostly included are those of cooperation, consultation, compliance with national labor laws or international labor regulation, respect for due process, limits on the use of policies affecting labor standard issues, access to dispute settlement mechanisms and the possibility of imposing sanctions due to lack of compliance.

Trade Agreements in force that contain provisions related to labor issues

Obligation
Ref. to ILO
Dispute Settlement
Cotonou Agreement Enlace a sitio fuera de SICE
CP, R
yes
no
CAFTA-DR
C, CP, PG, W
yes
CON, DS, AV
CARIFORUM - EU
C, CP, R, W
yes
CON, DS
Canada - Chile
C, CP, PG
no
CON, DS, AV
Canada - Costa Rica
C, CP, PG
yes
CON, DS
Canada - Peru
C, CP, PG
yes
CON, DS

Chile - Australia

CP

yes no
Chile - China
CP
yes
 no
Chile - Colombia
C, CP, W
yes
CON

Chile - JapanPDF

C, R, W
yes
no
Chile - Peru
C, CP, W
yes
no
Chile - EU
CP
yes
no
Chile - United States
C, CP, PG, W
yes
CON, DS, AV
Chile, New Zealand, Singapore and Brunei Darussalam (Transpacific Agreement-P4)
C, CP, R, W
yes CON
United States - Australia
C, CP, PG, W
yes
CON, DS, AV
United States - Bahrain
C, CP, PG, W
yes
CON, DS, AV
United States - Jordan
C, CP, W
yes
CON, DS, AV
United States - Morocco
C, CP, PG, W
yes
CON, DS, AV
United States - Oman
C, CP, PG, W
yes
CON, DS, AV
United States - Peru
C, CP, PG, W
yes
CON, DS, AV
United States - Singapore
C, CP, PG, W
yes
CON, DS, AV
NAFTA
C, CP, PG
no
CON, DS, AV

Obligations:
C: compliance with national laws
CP: cooperation
PG: procedural safeguards
R: rejection of the use of labor standards for protectionist purposes
W: waive or derogate labor laws to promote trade and investment

Ref. ILO Conventions:
Reference to ILO Conventions or Declaration

Dispute Settlement:
DS: access to a dispute settlement mechanism, either general of the agreement or special for the labor chapter only
CON: consultations available
AV: possibility of trade sanctions

 

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Trade and International Standards