The Limits of Regionalism

Core Labour Standards and International Trade

“…In fact, the role of trade appears to be close to zero since most of the between sector shifts in employment were due to defence spending. 83 It is worthy to note here that the greater portion of manufacturing in developed countries is skill-and innovation-intensive industries (e.g., the development and manufacturing of heavy machinery) that are not under threat of relocation to low-wage countries. 80 The concern regarding the impact of trade on labour in industrialised countries seems to be theoretically supported by the Stolper-Samuelson theorem, which holds that when trade is conducted with an unskilled-labour-abundant country, the price of unskilled-labour-intensive goods will decline domestically.…”

“…83 Whilst it might appear for now as mere rhetoric, the recognition by the parties in their trade arrangements that economic and social policies are mutually reinforcing components of sustainable development is a good sign and an example for a multilateral blueprint or as part of an international framework. This divide as a major part of the growing inequality in the world with its attendant problems has, although not gained the needed attention, nevertheless also been captured in a number of RTAs.…”

“…83 It is feasible to envisage the situation where a panel and the CRTA may come to different conclusions regarding the consistency of an agreement with the relevant multilateral trade rules. 83 It is feasible to envisage the situation where a panel and the CRTA may come to different conclusions regarding the consistency of an agreement with the relevant multilateral trade rules.…”

“…83 Prior to the signing of the EU-Korea FTA, the Republic of Korea's memberships of the ILO in 1991 and the OECD in 1996 have positively influenced its labour relation record. Article 13.1 defines the scope of the "trade-related aspects of 82 Preamble of Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part.…”

Promoting sustainable development or legitimising free trade? Civil society mechanisms in EU trade agreements

“…By way of illustration, during negotiations on the North American Agreement on Labor Cooperation, a side agreement to the North American Free Trade Agreement (NAFTA) between the US, Canada and Mexico, in 1993, voices from labour expressing reservations towards the NAFTA became more silent. 36 Similarly, the North American Agreement on Environmental Cooperation, NAFTA's other side agreement concluded in 1993, helped to mobilise support for the NAFTA from environmental groups. 37 In the same vein, van Roozendaal 38 argues that in the case of the EU-Korea agreement, the inclusion of labour standards could be regarded 'as a symbolic act to increase the support for free trade agreements without expectations that they would be effective' .…”