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Pablo Lazo

ICTSD PANEL: LABOUR PROVISIONS IN BILATERAL AND REGIONAL AGREEMENTS: CHALLENGES FOR THE MULTILATERAL TRADING SYSTEM. Pablo Lazo. WTO PUBLIC FORUM 2009. TRADE AND LABOR: CONTEXT. Accelerated Technological Innovation Economic Globalization Mutation in the world of labor

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Pablo Lazo

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  1. ICTSD PANEL:LABOUR PROVISIONS IN BILATERAL AND REGIONAL AGREEMENTS: CHALLENGES FOR THE MULTILATERAL TRADING SYSTEM Pablo Lazo WTO PUBLIC FORUM 2009

  2. TRADE AND LABOR: CONTEXT • Accelerated Technological Innovation • Economic Globalization • Mutation in the world of labor • Challenge: Is it possible to govern globalization? How? 3

  3. TRADE AND LABOR: MULTILATERAL DEVELOPPMENT • Copenhagen World Summit of Heads of State on Social Development, 1995 • WTO: Singapore Declaration, 1996 • ILO: Declaration on Fundamental Principles and Rights at Work and its Follow-up, 1998 • UN ECOSOC: Ministerial Declaration, 2006 • ILO: Declaration on Social Justice for a Fair Globalization, 2008

  4. UNIVERSAL CONSENSUS • Core labor standards • ILO: competent body • Labor standards should not be used with protectionist purposes • It should not be questioned the comparative advantage of any country on the base of these instruments

  5. FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK • Freedom of association and collective bargaining • Elimination of compulsory labor • Abolition of child labor • Non discrimination

  6. EVOLUTION OF THE SOCIAL CLAUSE • UNILATERALISM: GPS • NAFTA • US-JORDAN • US-CAMBODIA • US-CHILE (POST TPA) • TRANSPACIFIC • NEW ZEALAND-CHINA • US-PERU (POST BIPARTISAN US AGREEMENT) • UE-CARIFORUM • CANADA-PERU 7

  7. LABOR STANDARDS EN INTERNATIONAL TRADE UNILATERAL MECHANISMS: GSP BILATERAL OR REGIONAL SYSTEMS: NAFTA US-JORDAN US-CAMBODIA US-CHILE (AFTER TPA) TRANSPACIFIC NEW ZEALAND-CHINA US-PERU (AFTER BIPARTISAN US AGREEMENT) UE-CARIFORUM CANADA-PERU MULTILATERAL SYSTEMS: ILO OAS APEC OECD UN GLOBAL COMPACT WORLD BANK AND OTHERS ISO 26.000 (DRAFT) 8

  8. FOUR MODELS • US: trade sanctions • EU: commitments under civil society supervision • Canada: Monetary contributions • New Zealqnd-Chile: Consultation and cooperative approach

  9. PROVISIONS • Separate agreements/labor clauses • Decent work concept • Core labor standards • Enforcement • Non derogation • Transparency • Cooperation • Seriousness – different approaches • Social actors participation

  10. SOCIAL RESPONSABILITY ILO: Declaration on MNS OECD: Guidelines for MNE UN Global Compact ISO 26.000 (draft) 11

  11. LINKAGE TRADE &LABOR: EXPERIENCE OF CHILE • Canada • MERCOSUR • European Union • USA • TRANSPACIFIC • PRChina • Panama • Peru • Colombia • Japan • Australia • Turkey

  12. SOME FACTS OF THE PROCESS From unilateral to bilateral Increasing and deepening the linkage Risk of distortion Still no room in multilateralism No evidence of any labor case in an FTA arbitral panel No evidence of protectionist use of labor clauses No evidence of damages with social clauses Positive cooperation experiences Some cases related to GSP Consultations only in NAFTA 14

  13. CONCLUSIONS • Sound economic and trade policies can be compatible with sound social policies • Economic growth is not compromised with core labor protections, nationally or internationally • Labor engagement increases competitiveness

  14. WWW.DIRECON.CLplazo@direcon.cl 16

  15. THANK YOU!

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