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Social clause

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Within the context of international trade, a social clause is the integration of core ILO labour rights conventions into trade agreements.

Background

Core labour standards would inserted into an article within the WTO Agreements which could be a more viable option than amendment of the Agreements themselves. If a State violated the social clause, the breach could become subject to WTO scrutiny, through the usual WTO dispute settlement provisions (provided provision is made for this when inserting a social clause). As a result of dispute settlement proceedings, the DSB could, at the request of the complaining party, recommend that retaliatory trade measures be taken against the offending country.

See also