The Lessons of TPP and the Future of Labor Chapters in Trade Agreements
Linking labor standards to trade agreements out of dual concern for poor working conditions in low-wage countries and unfair labor competition in rich countries reached its high point in the Trans-Pacific Partnership (TPP). The US labor movement’s opposition to TPP shows the disenchantment with this agenda. Other elements of the agreement were seen as equally important to workers: investment, rules of origin, procurement, and currency manipulation. These new frontiers for labor advocacy in trade agreements highlight the need to re-balance how trade agreements treat capital and labor. A promising, though overlooked, feature of TPP was the pressure the US exercised to encourage domestic labor reforms—formally through a side agreement in the case of Vietnam and informally in the case of Mexico. The US withdrawal set those reforms back. The hardening opposition to TPP also made clear that rich countries’ workers expected losses from trade will not be made palatable in the absence of effective domestic safety nets and compensatory mechanisms. TPP’s reception in the United States was a resounding rejection of liberal globalization as we know it, and the CPTPP, unfortunately, does not seem to chart a different path.