IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i3d10.1007_s13132-023-01550-z.html
   My bibliography  Save this article

Navigating the Evolution of Labor Provisions: Comparative Insights from China, the US, and the EU in Free Trade Agreements

Author

Listed:
  • Ruiqi Yang

    (University of International Business and Economics)

  • Han Luo

    (University of International Business and Economics)

Abstract

In the dynamic landscape of international trade, labor provisions within Free Trade Agreements (FTAs) have emerged as a pivotal intersection of trade liberalization and labor rights. This study delves into the historical development, motivations, and consequences of labor provisions, with a particular focus on China’s evolving role. Drawing on comprehensive analyses, this research uncovers a significant shift in the prioritization of labor standards by major global economies, notably the United States (US) and the European Union (EU), within their respective FTAs. The study highlights the theoretical implications of this shift, offering valuable insights into the adaptability and potential refinement of labor provisions in diverse contexts. Moreover, it underscores the policy implications for negotiators and policymakers, advocating for a tailored approach to labor standards that considers the unique circumstances of individual countries, particularly developing nations. The recommendation to fuse labor and environmental clauses into sustainable development chapters within FTAs provides a pragmatic blueprint for fortifying the applicability and enforceability of labor standards. By integrating labor and environmental considerations, FTAs can foster more holistic and harmonious trade relationships, ultimately contributing to a more equitable and sustainable global trade landscape.

Suggested Citation

  • Ruiqi Yang & Han Luo, 2024. "Navigating the Evolution of Labor Provisions: Comparative Insights from China, the US, and the EU in Free Trade Agreements," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11128-11160, September.
  • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01550-z
    DOI: 10.1007/s13132-023-01550-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-023-01550-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13132-023-01550-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Heng, 2021. "The Belt and Road Initiative Agreements: Characteristics, Rationale, and Challenges," World Trade Review, Cambridge University Press, vol. 20(3), pages 282-305, July.
    2. Diep Ngoc Su & Diep Luc Tra & Hanh My Thi Huynh & Hai Hong Thi Nguyen & Barry O’Mahony, 2021. "Enhancing resilience in the Covid-19 crisis: lessons from human resource management practices in Vietnam," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(22), pages 3189-3205, November.
    3. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    4. Liming Wang & Yuan Li, 2020. "The negotiation of EU–China comprehensive agreement on investment and its potential impact in the post-pandemic era," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 18(4), pages 365-372, October.
    5. Inmaculada Martinez-Zarzoso & Hendrik W. Kruse, 2019. "Are Labour Provisions in Free Trade Agreements Improving Labour Conditions?," Open Economies Review, Springer, vol. 30(5), pages 975-1003, November.
    6. Rajneesh Narula, 2019. "Enforcing higher labor standards within developing country value chains: Consequences for MNEs and informal actors in a dual economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1622-1635, December.
    7. Harrison, James & Barbu, Mirela & Campling, Liam & Ebert, Franz Christian & Martens, Deborah & Marx, Axel & Orbie, Jan & Richardson, Ben & Smith, Adrian, 2019. "Labour Standards Provisions in EU Free Trade Agreements: Reflections on the European Commission's Reform Agenda," World Trade Review, Cambridge University Press, vol. 18(4), pages 635-657, October.
    8. Sabina Dewan & Lucas Ronconi, 2018. "U.S. Free Trade Agreements and Enforcement of Labor Law in Latin America," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(1), pages 35-56, January.
    9. Chien-Huei Wu, 2020. "ASEAN at the Crossroads: Trap and Track between CPTPP and RCEP," Journal of International Economic Law, Oxford University Press, vol. 23(1), pages 97-117.
    10. Kathleen Claussen, 2020. "Reimagining Trade-Plus Compliance: The Labor Story," Journal of International Economic Law, Oxford University Press, vol. 23(1), pages 25-43.
    11. Adrian Smith & Mirela Barbu & Liam Campling & James Harrison & Ben Richardson, 2018. "Labor Regimes, Global Production Networks, and European Union Trade Policy: Labor Standards and Export Production in the Moldovan Clothing Industry," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 550-574, October.
    12. Sophie Pochic & Vincent‐Arnaud Chappe, 2019. "Battles through and about statistics in French pay equity bargaining: The politics of quantification at workplace level," Gender, Work and Organization, Wiley Blackwell, vol. 26(5), pages 650-667, June.
    13. S. Irudaya Rajan & P. Sivakumar & Aditya Srinivasan, 2020. "The COVID-19 Pandemic and Internal Labour Migration in India: A ‘Crisis of Mobility’," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 1021-1039, December.
    14. Beibei Hu & Yuying Jin & Kai Wang, 2022. "How free trade agreement affects the success of China's Belt and Road infrastructure projects," International Studies of Economics, John Wiley & Sons, vol. 17(4), pages 484-498, December.
    15. Palmeter,David & Mavroidis,Petros C. & Meagher,Niall, 2022. "Dispute Settlement in the World Trade Organization," Cambridge Books, Cambridge University Press, number 9781108830522, January.
    16. Jack Barrie & Patrick Schröder, 2022. "Circular Economy and International Trade: a Systematic Literature Review," Circular Economy and Sustainability, Springer, vol. 2(2), pages 447-471, June.
    17. Palmeter,David & Mavroidis,Petros C. & Meagher,Niall, 2022. "Dispute Settlement in the World Trade Organization," Cambridge Books, Cambridge University Press, number 9781108820912, January.
    18. Felicity Vabulas & Duncan Snidal, 2021. "Cooperation under autonomy: Building and analyzing the Informal Intergovernmental Organizations 2.0 dataset," Journal of Peace Research, Peace Research Institute Oslo, vol. 58(4), pages 859-869, July.
    19. Carrai, Maria Adele, 2021. "Adaptive governance along Chinese-financed BRI railroad megaprojects in East Africa," World Development, Elsevier, vol. 141(C).
    20. Rob Van Tulder & Suzana B. Rodrigues & Hafiz Mirza & Kathleen Sexsmith, 2021. "The UN’s Sustainable Development Goals: Can multinational enterprises lead the Decade of Action?," Journal of International Business Policy, Palgrave Macmillan, vol. 4(1), pages 1-21, March.
    21. Minka Woermann & Schalk Engelbrecht, 2019. "The Ubuntu Challenge to Business: From Stakeholders to Relationholders," Journal of Business Ethics, Springer, vol. 157(1), pages 27-44, June.
    22. Niels Gheyle, 2022. "Evading Vetoes: Exiting the Politicized Decision Trap in EU Trade Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 60(6), pages 1723-1740, November.
    23. Valerio DE STEFANO, 2021. "Not as simple as it seems: The ILO and the personal scope of international labour standards," International Labour Review, International Labour Organization, vol. 160(3), pages 387-406, September.
    24. COTULA, Lorenzo, 2021. "EU–China Comprehensive Agreement on Investment: An Appraisal of its Sustainable Development Section," Business and Human Rights Journal, Cambridge University Press, vol. 6(2), pages 360-367, June.
    25. Desirée LeClercq, 2023. "Integrating non-binding labour standards in binding trade agreements: The ILO’s feedback loop," Journal of International Economic Law, Oxford University Press, vol. 26(3), pages 542-558.
    26. Katharine Heyl & Felix Ekardt & Paula Roos & Jessica Stubenrauch & Beatrice Garske, 2021. "Free Trade, Environment, Agriculture, and Plurilateral Treaties: The Ambivalent Example of Mercosur, CETA, and the EU–Vietnam Free Trade Agreement," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    27. Khadija Straaten & Niccolò Pisani & Ans Kolk, 2020. "Unraveling the MNE wage premium," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1355-1390, December.
    28. Damian Raess & Dora Sari, 2018. "Labor Provisions in Trade Agreements (LABPTA): Introducing a New Dataset," Global Policy, London School of Economics and Political Science, vol. 9(4), pages 451-466, November.
    29. Susan Ariel Aaronson & Patrick Leblond, 2018. "Another Digital Divide: The Rise of Data Realms and its Implications for the WTO," Journal of International Economic Law, Oxford University Press, vol. 21(2), pages 245-272.
    30. Marco Bronckers & Giovanni Gruni, 2021. "Retooling the Sustainability Standards in EU Free Trade Agreements," Journal of International Economic Law, Oxford University Press, vol. 24(1), pages 25-51.
    31. Andy Pike & Peter O’Brien & Tom Strickland & Graham Thrower & John Tomaney, 2019. "Financialising City Statecraft and Infrastructure," Books, Edward Elgar Publishing, number 18319.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yannick T. Wiessner & Elisa Giuliani & Frank Wijen & Jonathan Doh, 2024. "Towards a more comprehensive assessment of FDI’s societal impact," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 50-70, February.
    2. Jonathan P. Doh & Lorraine Eden & Anne S. Tsui & Srilata Zaheer, 2023. "Developing international business scholarship for global societal impact," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(5), pages 757-767, July.
    3. Céline Carrère & Marcelo Olarreaga & Damian Raess, 2022. "Labor clauses in trade agreements: Hidden protectionism?," The Review of International Organizations, Springer, vol. 17(3), pages 453-483, July.
    4. Niraja Srinivasan & Lorraine Eden, 2021. "Going digital multinationals: Navigating economic and social imperatives in a post-pandemic world," Journal of International Business Policy, Palgrave Macmillan, vol. 4(2), pages 228-243, June.
    5. Valentina Marano & Miriam Wilhelm & Tatiana Kostova & Jonathan Doh & Sjoerd Beugelsdijk, 2024. "Multinational firms and sustainability in global supply chains: scope and boundaries of responsibility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(4), pages 413-428, June.
    6. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    7. Khadija Straaten & Rajneesh Narula & Elisa Giuliani, 2023. "The multinational enterprise, development, and the inequality of opportunities: A research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1623-1640, December.
    8. Xia, Ying & Chen, Muyang, 2023. "The Janus face of stateness: China's development-oriented equity investments in Africa," World Development, Elsevier, vol. 162(C).
    9. Pei Sun & Jonathan P. Doh & Tazeeb Rajwani & Donald Siegel, 2021. "Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1818-1853, December.
    10. Hanna Hilbrandt & Monika Grubbauer, 2020. "Standards and SSOs in the contested widening and deepening of financial markets: The arrival of Green Municipal Bonds in Mexico City," Environment and Planning A, , vol. 52(7), pages 1415-1433, October.
    11. Bashar Barakat & Marwan Milhem & Gehad Mohammed Ahmed Naji & Mohammed Alzoraiki & Habsah Binti Muda & Ali Ateeq & Zahida Abro, 2023. "Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    12. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).
    13. Matthew Thompson & Vicky Nowak & Alan Southern & Jackie Davies & Peter Furmedge, 2020. "Re-grounding the city with Polanyi: From urban entrepreneurialism to entrepreneurial municipalism," Environment and Planning A, , vol. 52(6), pages 1171-1194, September.
    14. Monteiro, José-Antonio, 2018. "Gender-related provisions in regional trade agreements," WTO Staff Working Papers ERSD-2018-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    15. International Organisation, 2017. "Handbook on Assessment of Labour Provisons in Trade and Investment Arrangements," Working Papers id:11929, eSocialSciences.
    16. Houldsworth, Elizabeth & Marra, Marianna & Brewster, Chris & Brookes, Michael & Wood, Geoffrey, 2021. "Performance appraisal and MNEs: The impact of different capitalist archetypes," International Business Review, Elsevier, vol. 30(5).
    17. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    18. Fritz-Julius Grafe & Harald A. Mieg, 2021. "Precaution and Innovation in the Context of Wastewater Regulation: An Examination of Financial Innovation under UWWTD Disputes in London and Milan," Sustainability, MDPI, vol. 13(16), pages 1-10, August.
    19. Jonas AISSI & Rafael PEELS & Daniel SAMAAN, 2018. "Evaluating the effectiveness of labour provisions in trade agreements: An analytical and methodological framework," International Labour Review, International Labour Organization, vol. 157(4), pages 671-698, December.
    20. Muhammad Atif & Afaq Ali Khan & Sibghatullah & Saeed Ahmed & Muhammad Yaqoob, 2024. "Socio-Economic Inclusion and Sustainable Economic Growth: An Evidence from Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 70-77.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01550-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.