Navigating the Inclusion of Labor Clauses in India's Free Trade Agreements: Balancing Trade Liberalization and Worker Rights Protection

Authors

  • Bhaavya Gupta

Keywords:

Navigating, Indo-Pacific Economic Framework for Prosperity (IPEF), India's Free Trade Agreements (FTAs), Current political worries, worker rights

Abstract

The changing nature of global trade involves countries striving to increase their economic power while also promoting fair labor standards. This intricacy is especially noticeable in emerging economies like India, which has a growing workforce and ambitions for becoming a global trade leader. This paper delves into the complexities of labor clauses in India's Free Trade Agreements (FTAs). It follows India's careful handling of labor regulations, evolving from initial opposition due to concerns about protectionism and sovereignty violations to a more sophisticated position aligning with economic goals. Analyzing India's involvement with labor standards in trade agreements, the paper looks at both historical issues and current political worries. It looks at the conflict between promoting trade openness and safeguarding worker rights, focusing on discussions about the relationship between labor norms and trade. The paper examines how trade agreements and labor regulations intersect within the framework of Indian context and historical experiences, highlighting issues related to sovereignty, protectionism, and past events. Moreover, it explores the current labor standards in India and presents case studies from Vietnam and Malaysia to demonstrate how labor provisions can influence domestic reforms. In the future, the paper will examine how India's position on labor clauses in FTAs is changing, by studying recent deals with the EFTA and participation in the Indo-Pacific Economic Framework for Prosperity (IPEF). It reiterates the significance of finding a balance between trade advantages and upholding fair labor conditions for workers in India, highlighting the necessity of a cautious strategy in upcoming trade talks.

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Published

2024-09-03