Ex AnteDue Diligence: Formation of PTAs and Protection of Labor Rights¹

Abstract

Kim, Moonhawk. (2012) Ex Ante Due Diligence: Formation of PTAs and Protection of Labor Rights. International Studies Quarterly, doi: 10.1111/j.1468‐2478.2012.00758.x © 2012 International Studies Association Do fair trade PTAs—trade agreements that contain provisions for protection of labor rights—lead to improvements in labor protection in PTA partner states? If so, how do the PTAs bring about such improvements? I argue that trade partner states are likely to engage in ex ante due diligence and improve the protection of labor rights at home before they sign or even enter into negotiations for a PTA. Given that large developed economies have increasingly placed value on strong labor protection, trade partners of these economies act on the belief that, holding other factors constant, having stronger labor protection will increase their attractiveness as a potential or a prospective PTA partner. I test this argument in the context of the United States and its trade partners between 1982 and 2005. The evidence shows that trade partner states indeed are much more likely to improve labor protection (i) prior to the 2002 Trade Act publicizing the importance of labor protection and (ii) prior to signing a PTA with the United States.

Good for some, bad for others: US investors and non-trade issues in preferential trade agreements

“…Some scholars have already examined the effect of labor rights in PTAs on domestic compliance (Hafner-Burton 2009;Kim 2012;Postnikov and Bastiaenes 2014;Spilker and Böhmelt 2012). However, it is yet unclear whether these standards influence business too.…”

Governing Labour Standards through Free Trade Agreements: Limits of the European Union's Trade and Sustainable Development Chapters

“…The methodology adopted here is important in that it seeks to isolate the impact of labour provisions within FTAs from other factors, thereby interrogating the causal relationship between particular policy instruments and changes in third countries. In many existing studies on human and labour rights provisions in trade agreements, including those contained in the EU GSP and in US trade agreements (see, for example, Hafner‐Burton, ; Kim, ), it is commonplace to assess the change over time of the ‘average’ civil/labour rights situation of entire countries, typically via quantified interpretations of reported rights violations aggregated from a limited range of textual reports. Pinpointing and substantiating the precise mechanisms at work is beyond the scope of that form of analysis.…”

A Supply Chain Approach to Trade and Labor Provisions

“…During the pre-ratification stage, states will agree formally or informally to make specific changes to their labor laws as a condition for signing the FTA. According to some scholars, it is at this stage that labor provisions have been most effective in fostering real reform (Kim, 2012;Vogt, 2015). The TPP effectively formalized the pre-ratification improvement process by including three formal agreements, called Labour Consistency Plans (LCP).…”