ILAB’s Office of Trade and Labor Affairs strives to ensure that U.S. trade agreements support a level playing field for American workers and businesses, and workers around the world. ILAB oversees the labor provisions in U.S. free trade agreements (FTAs), trade preference programs, investment agreements, multilateral development bank financing, and other economic arrangements on behalf of the U.S. Labor Department. Using these tools, along with diplomatic engagement, technical assistance and exchanges, and other available leverage, ILAB raises compliance with international labor standards.

We do this by:

  • Negotiating and implementing strong labor commitments in trade agreements, preference programs, and trade frameworks;
  • Monitoring compliance by maintaining an in-depth understanding of laws, policies and practices of trade partners;
  • Assessing, engaging with, and enforcing our trade partners’ compliance with these labor obligations, either proactively or in response to formal complaints;
  • Advocating on behalf of measures that ensure that no country gains an unfair trade advantage by reducing labor protections;
  • Using all available tools, including participating in formal dispute settlement when appropriate, to hold every trade partner to their commitments; and
  • Where political will to improve exists, providing technical expertise and technical assistance to build partner countries’ capacity to enforce and increase labor protections. 

Free Trade Agreements: Beginning with the U.S.-Jordan FTA in 2001, all subsequent FTAs have included labor provisions. FTA labor provisions establish official processes for receiving complaints ("submissions") from interested organizations that believe a trading partner is not fulfilling the labor commitments it made. In the United States, the U.S. Department of Labor, specifically ILAB, receives and reviews submissions made under the labor chapters of our trade agreements. This mechanism can provide powerful leverage for change.

All labor submissions accepted for review 
Learn how to file a complaint

Trade Preference Programs: Trade preference programs are unilateral trade benefits that the U.S. government provides to developing countries to promote economic growth by allowing access to the U.S. market. Preference program privileges are contingent on eligibility requirements, including that countries protect workers’ rights. ILAB serves on the interagency body that administers these trade programs and monitors beneficiary countries’ compliance with the eligibility criteria established by Congress. The worker rights eligibility of preference programs provides leverage with the program-eligible countries to make improvements.

There are four main preference programs:

  • Generalized System of Preferences (GSP)
    The GSP program has covered 122 countries and territories since 1976. Countries may be removed from GSP eligibility if it is found that they fail to meet established criteria, including those on workers' rights. Learn More
  • African Growth and Opportunity Act (AGOA)
    AGOA is the cornerstone of U.S. trade and investment policy with sub-Saharan Africa. Through AGOA, the US promotes free markets, expands U.S.-African trade and investment, stimulates economic growth, and facilitates sub-Saharan Africa's integration into the global economy. Learn More
  • Caribbean Basin Trade Partnership Act (CBTPA):
    The CBTPA covers 17 beneficiary countries in the Caribbean Basin region.  Learn More
  • Haitian Hemispheric Opportunity through Partnership for Encouragement Act of 2008 (HOPE II):
    HOPE II offers trade preferences to Haiti in exchange for compliance with specified country-level and producer-specific labor eligibility requirements. The two kinds of eligibility requirements provide the U.S. government with mechanisms to promote compliance with labor standards and Haitian labor laws. Learn More

Economic Frameworks and Investment Agreements

The U.S. government’s non-binding trade investment framework agreements offer important opportunities to discuss and resolve labor concerns in the context of trade. One example is the Indo-Pacific Economic Framework for Prosperity (IPEF), which seeks to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness. ILAB participated in discussions with IPEF partners to ensure strong labor provisions in the chapters on supply chains, clean economy, and fair economy.

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Engaging Social Partners to Foster Equitable, Sustainable Prosperity

Read more about how ILAB engages workers around the Indo-Pacific Economic Framework for Prosperity and the value of putting worker voice and labor rights front and center in trade and development.

Multilateral Development Bank financing:

ILAB participates in the U.S. government Working Group on Multilateral Assistance, assuring consideration of labor concerns in the review and implementation of loan proposals and policymaking by multilateral development banks and development finance institutions. These loans require adherence to environmental and social standards, which include labor safeguards to protect project workers with requirements that include terms and conditions of employment, occupational safety and health, the right to freedom of association, and collective bargaining, equal opportunity and nondiscrimination.