Labour, Sustainable Development and Free Trade Agreements: Comparing Recent Policy Developments

On Tuesday 20 February 2024 the Centre for Employment and Labour Relations Law hosted a seminar on Labour, Sustainable Development and Free Trade Agreements: Comparing Recent Policy Developments, presented by Professor Tonia Novitz (University of Bristol) with commentary provided by Professor Joo-Cheong Tham (Melbourne Law School).

A standard feature of European Union (EU) free trade agreements (FTAs) is a ‘trade and sustainable development’ (TSD) chapter which, inter alia, addresses labour standards. This is a model which has been evolving and the European Commission has indicated that, from 2022 onwards, its content and efficacy will be revised and improved, citing the EU-NZ FTA as an example. Since Brexit, apart from ‘roll-over agreements’, the United Kingdon (UK) has sought to adopt FTAs that include labour chapters, such as Chapter 21 of the UK-Australia FTA, but which make minimal reference to sustainability. See, for example Article 21.8.1 of the UK-Australia FTA which acknowledges ‘the importance of gender equality and non-discrimination in employment and income opportunities for sustainable, equitable, and inclusive economic growth’. This paper explores the potential for FTAs to promote social as well as environmental sustainability and what this might entail. It is argued that a viable sustainability approach should include, not only application of substantive norms recognised in Sustainable Development Goal (SDG) 8 of the 2030 Agenda, but also key elements of procedural justice and social dialogue recognised by the International Labour Organization (ILO). Assessed on this basis, both EU and UK trade policies have failings. The seminar will discuss what correctives may be feasible from a European and UK perspective, while seeking to engage with Australian views regarding recent trade initiatives and their implications for labour standards.