Does dialogue work? The effectiveness of labor standards in EU preferential trade agreements

Abstract

ABSTRACTWhile both the European Union (EU) and the United States (US) include labor standards in their preferential trade agreements (PTAs), they pursue different approaches in enforcing these standards. The US relies on coercion while the EU prefers a softer, no-sanctions approach. Are both effective in improving labor rights in partner states and what are the mechanisms leading to this improvement? Recent evidence suggests there is a positive ex ante effect of US labor provisions as PTA partners improve their labor conditions prior to signing an agreement to satisfy the US constituent preferences. Building on this scholarship, we argue that the effect of EU standards will also be positive but exhibited ex post as a result of learning by civil society actors during the implementation phase of labor provisions. We test and confirm this argument by estimating an ordered probit of the protection of labor rights in EU trade partners before and after signing a PTA.