The Role of Domestic Factors in the EU’s Governance of Labour Standards through Trade

Franklin Maduko,Laszlo Bruszt,Timea Pál

doi:10.2139/ssrn.3858511

Franklin Maduko, Laszlo Bruszt + Show 1 more

Open Access

https://doi.org/10.2139/ssrn.3858511

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Abstract

This paper analyses the role of domestic factors in the ability of the EU to promote NTPOs through formal trade policies and market integration, as two distinct governance approaches. Focusing on labour standards, we examine how economic and political factors in developing economies influence the ability of key stakeholders – governments, businesses and labour organizations – to undermine or reinforce EU governance efforts. We use a combination of regression and comparative case analysis to assess associations and understand processes on ground. The quantitative analysis shows that improvements in labour standards are closely associated with 1) labour standards in key export markets, 2) technological sophistication of exports, 3) state capacity and 4) freedom of CSOs. Comparative analysis of how differences in state strategies and capacity, key export destinations and strength of labour organizations across Moldova and Morocco set in place divergent pathways of labour standard improvements allows us to shed more light on the potentials and limitations of EU governance efforts.

Highlights

This paper analyses the role of domestic factors in the ability of the European Union (EU) to promote non-trade related policy objectives (NTPOs) through formal trade policies and market integration, as two distinct governance approaches
How and under what conditions can the European Union (EU) promote non-trade related policy objectives (NTPOs) such as labour standards among its lesser developed trade partners? Is this merely a matter of using the right type of conditionality and assistance in the specific field? Or does it involve a more encompassing approach that require adjusting trade and non-trade related policy objectives to diverse local conditions? We address these questions through an analysis of the extent and manners in which domestic factors in developing countries condition the ability of the EU to promote labour standards through trade1
We find that a higher share of technology-intensive product in total exports is positively associated with higher values of worker’s rights, while a greater share of textile and apparel in exports is associated with a decline in worker’s rights

Summary

Introduction*

Trade unions and NGOs can provide essential information to the EU about major labour concerns and contribute to possible solutions through its civil society arrangements As these mechanisms are still relatively new, we expect labour organizations to exert their influence primarily through the pressures on their national governments that can reinforce EU requirements to improve worker protections. Their contribution, empowered by the social dialogue institutions at the national level, could be essential to promote greater protection with respect to working conditions, complementing the primary focus of EU labour provision on fundamental labour rights. The variable proxies for the strength of labour organizations and we expect a positive relationship between CSO freedom and labor standards (H3)

We measure these variables using the equations

Results

Conclusions