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NAFTAs lessons on labor standards and trade agreements

In: Handbook on Globalisation and Labour Standards

Author

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  • Lance Compa

Abstract

NAFTA was the first trade agreement incorporating labor standards in its labor side agreement, the NAALC. This set a precedent for all U.S. trade agreements that followed. Civil society made creative use of the NAALC's complaint mechanism in forty-plus cases since 1994, but results were mixed. Gains were episodic, not systemic. The NAALC had inherent flaws, but the three governments also failed to make full use of its dispute resolution system, which might have led to stronger results. In 2018 the governments negotiated the U.S.-Mexico-Canada agreement (USMCA), whose labor chapter addresses many of the NAALC's flaws. It includes stronger enforcement measures, such as an innovative "rapid-response" complaint mechanism for freedom of association violations at specific worksites. Mexico agreed to far-reaching reforms of its labor law system as part of the USMCA, and adopted them in 2018-2019. A four-year phase-in timeline for implementation means that further assessment of the USMCA requires more time as well.

Suggested Citation

  • Lance Compa, 2022. "NAFTAs lessons on labor standards and trade agreements," Chapters, in: Handbook on Globalisation and Labour Standards, chapter 15, pages 274-296, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18768_15
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