The 2017 U.S.-Guatemala dispute (the Dispute) under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) was the first instance in which a labor law complaint was disputed under the arbitration mechanisms of a free trade agreement. For labor law advocates, it represents a test of how the inclusion of labor law provisions within international trade law instruments will protect transnational labor rights. In reviewing this case from the perspective of transnational labor law, the arbitration panel’s decision demonstrates the many limitations incident to using free trade agreements to pursue the enforcement of labor laws abroad. In particular, the Panel’s narrow formulation of the “affecting trade” requirement in the CAFTA-DR will prove challenging for labor advocates. While the integration of labor provisions in international trade law instruments will likely continue, the effectiveness of such measures does not look positive in light of the Dispute.

Continue reading Leveraging Trade Agreements for Labor Law Enforcement: Drawing Lessons from the US-Guatemala CAFTA Dispute