FTA DISPUTES CONCERNING LABOR, ENVIRONMENT, HUMAN RIGHTS AND SUSTAINABILITY

(Grouped by the defending country/region, then chronologically)

(1) North America

(2) Latin America

(A)  Central America- Dominican Republic FTA (CAFTA-DR) - Guatemala and compliance with CAFTA-DR labor chapter obligations: 

  • Reference materials: For an archived complete set of documents from the dispute settlement proceedings in this case: see permalink to the Internet Archive's 2017 capture of Guatemala Ministry of Economy document site (click on CAFTA DR /DEMANDA DE EEUU c. GUATEMALA).

  • Dispute settlement steps and dates: U.S. request for consultations with Guatemala under CAFTA Article 20.5.2, regarding effective enforcement of labor laws, 30 July 2010; request for Free Trade Commission meeting 16 May 2011; Panel request and press release 9 August 2011; Action plan 27 April 2012; Guatemala-U.S. agreement on 18-point labor rights Enforcement Plan (text from US) (text from Guatemala), 11 April 2013. Readout of meeting between USTR Froman and Guatemalan Labor and Trade Ministers 7 March 2014 (US states it may resume dispute settlement process if concerns regarding Enforcement Plan implementation not addressed by 25 April). On 25 August 2014, USTR Froman announces 4-week suspension of case to review information provided by Guatemala. On 18 September 2014, USTR Froman announces US request to panel to resume its work effective 19 September. Initial report delivered to disputing Parties 17 September 2016.

  • Final panel report delivered to disputing Parties 14 June 2017 and released 27 June 2017. (Another link to panel report and panel's letter transmitting its report.)

  • ICTSD panel discussion 19 September 2017 on the Guatemala labor case here, including a summary of the panel report and discussion of the practical and evidentiary issues in the case.

(B) Peru - US Trade Promotion Agreement - Dispute on forest management in Peru

  • On 4 January 2019, U.S. announced a request for consultations with Peru under Article 18.12 of the Peru-U.S. TPA, concerning Peruvian government Decree moving the Agency for the Supervision of Forest Resources and Wildlife (OSINFOR) from its position as a separate and independent agency to a subordinate position within Peru’s Ministry of Environment (MINAM); see paragraph 3(h)(iii) of Annex 18.3.4 of the Peru-U.S. TPA on Forest Sector Governance.

  • On 9 April 2019, U.S. announced successful resolution of concerns, with 9 April enactment by Council of Ministers of Supreme Decree No. 066-2019-PCM, annulling the December 2018 decision to move OSINFOR.

(C) EU-Colombia-Ecuador-Peru EPA (EU-Andean Trade Agreement) - Complaint concerning mining labor outsourcing at Glencore mines in Colombia and Peru:

  • May 22, 2022: EU labor organization CNV International submitted complaint to EU Single Entry Point on behalf of labor organizations in Colombia and Peru, alleging breach of Arts. 267, 269, 271 and 277 of Title IX of EU-Colombia-Peru Trade Agreement regarding obligation to comply with fundamental labour rights, freedom of association and the right to equality. Complaint concerns outsourcing and precarious employment at Glencore mines in Colombia and Peru. Links: text of complaint.

  • March 4, 2023: CNV International published complaint submitted May 22, 2022 to EU Single Entry Point on behalf of labor organizations in Colombia and Peru, alleging breach of Arts. 267, 269, 271 and 277 of Title IX of EU-Colombia-Peru Trade Agreement regarding obligation to comply with fundamental labour rights, freedom of association and the right to equality. Links: text of complaint.

  • March 21, 2023: CNV met with European Parliament Committee on International Trade on its complaint concerning lack of compliance with sustainability chapter of EU-Andean Trade Agreement. Links: CNV press release; video of presentation.

(3) Asia - Oceania

(A) Korea - US FTA - Fisheries enforcement:

  • September 19, 2019: US requests consultations with Korea under the Environment chapter of the Korea-US (KORUS) Free Trade Agreement, concerning failure to apply sufficient sanctions to deter Korean vessels from engaging in fishing activities that violate conservation and management measures adopted by the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). Link: USTR press release; US National Marine Fisheries Service report. October 17: environment consultations between US and Korea in Seoul.

  • November 1, 2019: USTR press release welcomes passage by Korea’s National Assembly of amendments to Korea’s Distant Water Fisheries Development Act, strengthening Korea’s regime to deter and penalize illegal, unreported, and unregulated (IUU) fishing.

    (B) EU-Korea Free Trade Agreement - Korea - Compliance with labor commitments in Ch. 13 of EU-Korea FTA

    • 18 December 2018: EU requests formal consultations with Republic of Korea concerning labor commitments of EU-Korea trade agreement; EU press release and consultation request. Concerns expressed included respect for International Labour Organisation (ILO) fundamental principles of freedom of association and the right to collective bargaining, and Korea failure to ratify four fundamental ILO Conventions: two concerning freedom of association and the right to collective bargaining, and two concerning forced labor. Consultations took place on 21 January 2019 in Seoul.

    • 4 July 2019: EU requests a panel (Links: EU press release; panel request) to examine issues not satisfactorily addressed during consultations, including four provisions in the Korean Trade Union Act: Art. 2(1) definition of “worker”, which excludes some categories of self-employed persons as well as dismissed and unemployed persons from the scope of the freedom of association; Art. 2(4)(d) stating that an organization shall not be considered as a union if persons who do not fall under the definition of “worker” can join; Art. 23(1) stating that trade union officials may only be elected from among the members of the trade union; and Art. 12(1) - (3) (combined with Article 2(4) and Article 10) providing for discretionary certification procedure for establishment of trade unions.

    EU claims that measures (1) - (3), and the discretion provided by measure (4), are inconsistent with Korea’s commitments under FTA Article 13.4.3 to respect, promote and realize in its laws and practices, the principle of freedom of association.

    EU further claims that Korea committed to make continued and sustained efforts toward ratifying fundamental ILO Conventions, but 8 years after entry into force of the FTA, Korea has still not ratified four ILO fundamental Conventions and has not made continued and sustained efforts to ratify: (1) ILO C87 Freedom of Association and Protection of the Right to Organize Convention, 1948; (2) ILO C98 Right to Organize and Collective Bargaining Convention, 1949; (3) ILO C29 Forced Labor Convention, 1930; and (4) ILO C105 Abolition of Forced Labour Convention, 1957. According to the EU, in October 2019, the government submitted legislative proposals to ratify three of the ILO Conventions and to make necessary labor reforms, but the National Assembly did not take formal steps to discuss or vote on these bills. See also 20 December 2019 Korea Times overview on this dispute and generally, article by Giovanni Gruni on Labor Standards in the EU-South Korea FTA.

    • 19 December 2019: DG Trade announces that the parties completed panel selection in the EU-Korea dispute over workers’ rights in Korea.

      Panel was established and started its work on 30 December 2019; panelists are Prof. Laurence Boisson de Chazournes (selected by the EU), Prof. Jaemin Lee (selected by Korea) and Thomas Pinansky (selected by them as chair). (EU press release; procedural information on the panel). The deadline for amicus briefs was 10 January 2020. The Panel was due to present its report to the parties by the end of March 2020.

    • 20 January 2020: EU first submission in this dispute.

    • 31 March 2020: In light of COVID-19 travel restrictions, Parties and panel agreed to postpone hearing (originally scheduled for 14-16 April at WTO building in Geneva).

      15 September 2020: EU and Korea announced that the panel would hold a virtual hearing on 8-9 October due to pandemic travel restrictions; also announced replacement of panel chair.

    • 8-9 October: Hearing held by videoconference; in November the parties issued an agreed summary of the hearing.

    • 25 January 2021: Panel released its final panel report. EU press release here; analysis by Prof. Steve Peers here.

Last edited: April 29, 2023