Trade and Labour: Rethinking Policy Tools for Better Labour Outcomes

The report examines the evolution of trade-related policy instruments—including multilateral frameworks, national due diligence laws, and regional trade agreements—to address persistent labour challenges like forced labour and wage inequality. It argues for a shift toward mandatory due diligence, enhanced policy coherence, and a supply-chain-centric approach to ensure a just transition for workers during the green and digital revolutions.

• The green and digital transitions present a dual risk: while the Paris Agreement could generate 25 million new jobs by 2030, approximately 6 million jobs in resource-intensive industries may be lost, and 23% of global jobs are expected to change within five years due to AI and other technologies.
• Global supply chains are central to world trade, accounting for around 70% of international trade flows, but they face significant enforcement challenges due to their multi-tiered nature, which makes tracking labour practices difficult.
• There is a documented shift in due diligence (DD) instruments from voluntary frameworks, such as the UN Guiding Principles on Business and Human Rights and OECD Guidelines, toward mandatory national and supranational legislations.
• Regional Trade Agreements (RTAs) are increasingly incorporating labour provisions; as of December 2023, 115 out of 364 RTAs in force included such provisions, with the EU, Canada, and the US concluding nearly half of them.
• The USMCA's Facility-Specific Rapid Response Labour Mechanism (RRM) is a notable tool for enforcing labour rights, though it is criticized for asymmetry in protection and high implementation costs, totaling $210 million for the US.
• The garment industry in Bangladesh serves as a case study for multistakeholder collaboration; following the 2013 Rana Plaza collapse, initiatives like the Accord and the Alliance helped over 80% of the country's 3,200 RMG factories meet international safety standards.
• To improve labour outcomes, the report recommends a 'smart mix' of hard and soft law, the harmonization of due diligence frameworks to avoid policy fragmentation, and the use of technologies like blockchain and mobile apps to increase transparency and worker communication.
• Significant global labour gaps persist, with 61.2% of the global workforce (two billion individuals) in informal employment, 27.6 million people in forced labour, and over four billion people lacking any social protection.

APA

World Economic Forum (2024). Trade and Labour: Rethinking Policy Tools for Better Labour Outcomes. https://www3.weforum.org/docs/WEF_Trade_and_Labour_Rethinking_Policy_Tools_for_Better_Labour_Outcomes_2024.pdf

Chicago

World Economic Forum. Trade and Labour: Rethinking Policy Tools for Better Labour Outcomes. 2024. https://www3.weforum.org/docs/WEF_Trade_and_Labour_Rethinking_Policy_Tools_for_Better_Labour_Outcomes_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Trade and Labour: Rethinking Policy Tools for Better Labour Outcomes |date=June 2024 |url=https://www3.weforum.org/docs/WEF_Trade_and_Labour_Rethinking_Policy_Tools_for_Better_Labour_Outcomes_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024trade, author = {{World Economic Forum}}, title = {{Trade and Labour: Rethinking Policy Tools for Better Labour Outcomes}}, institution = {World Economic Forum}, year = {2024}, month = jun, url = {https://www3.weforum.org/docs/WEF_Trade_and_Labour_Rethinking_Policy_Tools_for_Better_Labour_Outcomes_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }