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Article

22 Sep 2016

Author:
ILO News

Labour provisions in trade agreements don’t hurt business

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... The research shows that a trade agreement which includes labour provisions actually increases the value of trade by 28 per cent on average, similar to 26 per cent for an agreement without labour provisions. The study also finds that labour provisions support labour market access, particularly for working-age women. Labour provisions impact positively on labour force participation rates, bringing larger proportions of both, male and female working age populations into the labour force ... The report warns that the impact of trade on labour markets shows a mixed picture, especially when it comes to job quality and wage increases. It insists on the fact that income inequality has tended to widen since the 1980’s, which is partly due to trade and investment liberalization ... Looking at how labour provisions can be more effective, the ILO research suggests that trade negotiations become less opaque by involving stakeholders, especially the social partners – and not just governments – in the making and implementation of labour provisions in trade agreements...