Trade and Labour framework agreed

The Government has a new framework to integrate labour standards issues with trade agreements, Trade Negotiations Minister Jim Sutton and Labour Minister Margaret Wilson said today.

Mr Sutton and Ms Wilson said economic and trade partnership agreements were not ends in themselves.

"The main way they improve living standards is by providing a liberal and predictable trading environment. But agreements should also be negotiated to enhance working conditions by, for example, exploring specific initiatives to improve employment outcomes."

The framework, adopted by Cabinet, sets out a policy for multilateral organisations such as the World Trade Organisation,and bilateral negotiations such as the Hong Kong talks currently underway.

“We wanted to clearly set out Government’s approach to this complex area of policy. We see a need for better integration of labour standards and trade agreements. At the same time we’re conscious that the world’s poorest countries must be able to trade their way to a better future.

“It’s crucial for developing countries that labour standards issues aren’t used as a pretext for keeping their exports out of rich markets. International efforts in this area have to be acceptable to developing countries,” the Ministers said.

Mechanisms proposed are based on cooperation and dialogue rather than sanctions. The framework also establishes International Labour Organisation principles (Declaration of Fundamental Principles and Rights at Work) as the appropriate basis for labour standards issues discussions in trade negotiations

These principles aim to promote basic workers’ rights in key areas like freedom of association and collective bargaining, forced labour, discrimination in employment, and child labour.

“New Zealand strongly supports work being done by the International Labour Organisation. We want this work acknowledged and appropriately supported in trade discussions,” the Ministers said.

The framework document will be published on Ministry of Foreign Affairs and Trade and the Department of Labour websites.