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Sanctioning Capacity in Trade and Sustainability Chapters in EU Trade Agreements: The EU-Korea Case
[journal article]
Abstract Although sanctions targeting political regimes receive the most media attention, the EU can also sanction states for labour rights violations through its trade policy. Although in practice such sanctions are applied only in extreme cases, the possibility of suspending trade preferences increases the... view more
Although sanctions targeting political regimes receive the most media attention, the EU can also sanction states for labour rights violations through its trade policy. Although in practice such sanctions are applied only in extreme cases, the possibility of suspending trade preferences increases the EU’s leverage. In modern trade agreements, the EU incorporates Trade and Sustainable Development (TSD) chapters for labour and environmental matters. However, trade sanctions for non-compliance with this chapter are absent. Instead, a dedicated dispute settlement arrangement exists, leading to recommendations by a panel of experts. In 2019 the EU launched proceedings against South Korea for failing to uphold commitments to ratify and implement International Labour Organisation core conventions regarding trade unions under the 2011 EU-Korea Trade Agreement. In 2021, the panel of experts sided with the EU's interpretation of commitments under the TSD chapter. This initial case represents the EU's intention to focus on the implementation of TSD chapters. Using data from official documents, this article process-traces the dispute with Korea. It argues that the outcome of the case, and Korea's ratification of fundamental International Labour Organisation conventions in 2021, demonstrate the potential of the TSD chapter, when forcefully enforced, to partially redress the weak sanctioning capacity in TSD chapters. It also uncovers important caveats regarding state capacity and alignment with government objectives as conditioning the effectiveness of TSD chapters' non-legally binding sanctioning mechanisms.... view less
Keywords
EU; foreign policy; international relations; trade policy; sustainable development; international agreement; ILO; free trade; conflict management; sanction; South Korea; Far East
Classification
International Relations, International Politics, Foreign Affairs, Development Policy
Economic Policy
Free Keywords
FTA; dispute mechanism; labour standards; panel of experts
Document language
English
Publication Year
2022
Page/Pages
p. 58-67
Journal
Politics and Governance, 10 (2022) 1
Issue topic
Beyond Foreign Policy? EU Sanctions at the Intersection of Development, Trade, and CFSP
ISSN
2183-2463
Status
Published Version; peer reviewed