ALSA 2025 meeting

In recent years, Asian countries have been made efforts to jointly addressing sustainable development issues with developed regions of the EU through trade cooperation frameworks. Especially, Japan, South Korea, Vietnam, and Singapore, have incorporated Trade and Sustainable Development (TSD) chapters in their Free Trade Agreements (FTAs) with the EU. The key question remains: Can TSD obligations in EU FTAs function as independent commitments beyond trade rules, and why do labour and environmental provisions face divergent interpretations in their legal implementation?

This study examines the divergent implementation of labour and environmental provisions in EU FTAs through case studies of the Ukraine Wood Products and Korea Labor Commitments disputes. The Ukraine case established that environmental measures could qualify under the General Agreement on Tariffs and Trade Article XX(b) exceptions. Conversely, the Korea case confirmed labour provisions set the independent obligations that do not always need to fulfill the condition of trade-related. The research finds that environmental provisions are easier to align with the World Trade Organization (WTO) rules, while labour provisions face broader interpretation challenges. Because most developing countries resist addressing labor issues through trade mechanisms, while environmental issues present sufficient practice and consideration in the WTO.

The paper suggests that it is necessary to establish a strategic interpretation rule: Labour provisions require more cautious interpretation guided by the International Labour Organization (ILO) standards and practices to prevent excessive overreach. The environmental provisions, however, can serve as the connection between TSD obligations and existing trade-related rules. An inclusive approach is needed, ensuring labour protections remain reasonable while using environmental rules to bridge trade policy with sustainable development goals. By doing so, the practical significance of the TSD provisions can be reflected in promoting sustainable development goals and further interpreting trade-related rules.