Labour and trade in Asia Pacific: origin, development, and prospects

Abstract

ABSTRACT Labour rights protection has been an important issue in international trade law, and its significance has gained momentum in recent times. Historically, countries from the Global North and the Global South have advocated opposing positions on a trade-labour linkage in the World Trade Organization system. Despite this long debate, one can observe a rise of labour clauses in bilateral and regional trade agreements. Previous literature has primarily focused on the United States (US) and the European Union (EU) perspectives, neglecting the practices and policies of Asia-Pacific countries. With the emergence of New Asian Regionalism, it is crucial to investigate how Asia-Pacific economies are promoting labour rights through free trade agreements (FTAs). This paper first presents an empirical study of labour clauses in Asia-Pacific FTAs, analysing their number, trend, concentration, and distribution. It finds that there is an increasing number of Asia-Pacific FTAs where labour clauses are inserted and that these provisions have presented a great diversity. However, in terms of substance, the latest legal framework of labour protection in Asia-Pacific FTAs is heavily influenced by the labour policies of the EU, while intra-Asia-Pacific trade agreements display inconsistent practices. This paper also identifies potential complaints that Asia-Pacific countries may face while enforcing labour commitments in FTAs, illustrated by the recent EU-Korea dispute. Overall, this paper provides a comprehensive understanding of the current state of labour rights protection in Asia-Pacific FTAs and highlights the need for further research to investigate the practices and policies of individual countries in the region.