What do we really know about trade and labor?

What do we really know about trade and labor?: A discussion in the shadow of NAFTA negotiations 1

On August 31, Harvard Law School’s Labor and Worklife Program (LWP), in collaboration with the University of Reading, organized a workshop on the “Past and Future of Labor Provisions in the Context of Trade.” Coincidentally, it was the same day President Donald Trump, twenty-six years after the signing of the North American Free Trade Agreement (NAFTA), notified Congress of his intent to sign a revised agreement with Mexico and, potentially, Canada. The signing of the original NAFTA in 1992 generated an unprecedented public reaction and set off an era of anti-globalization activism. The core of the criticism focused on the potential effects of trade agreements on jobs and labor rights. After growing pressure from labor activists, newly elected President Bill Clinton signed the North American Agreement on Labor Cooperation (NAALC), the first instance in which the U.S. negotiated a side agreement on labor to supplement a trade agreement. As Sharon Block, executive director of the LWP, highlighted in her opening remarks, there has been a surprising surge of labor provisions in trade agreements since the signing of the NAALC. For instance, the share of reciprocal trade agreements with labor-related commitments has risen from an average of 32 percent in the 1990s to 61 percent in the 2010s (with a peak of 80 percent in 2013). Still, she said, very little is known about what labor provisions in trade agreements actually accomplish.