China Moving the Belt and Road Initiative into Latin American Countries: Chinese Free Trade Agreements and Labor Implications

Abstract

In May 2017, Xi Jinping called the Latin American countries natural extension of the Maritime Silk Road. . . .”1 The region, the Community of Latin American and Caribbean States (CELAC), was also called an “important participant” in the Belt and Road Initiative (BRI) by Foreign Minister Wang Yi during the 2018 China-CELAC Ministerial Forum. Recent years of China’s increasing trade and investment have affected industries and jobs, and thus, have also given rise to labor issues as Chinese firms tend to hire Chinese nationals rather than local workers, especially in management and highly-skilled roles. “Rules of the Road” governing trade and foreign direct investment (FDI) between China and the Latin American and Caribbean region (LAC), though being negotiated, are not formalized in a comprehensive free trade agreement (FTA) with labor protection provisions, and currently, there are only FTAs with several LAC countries.